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Subscriptions are the bane of my frugal existence. Monthly recurring fees for a product is a consistent way to continue throwing money out the door. I dislike them so much because you aren’t just spending money once or twice, but rather, multiple times at a set rate. It’s like signing up for a definite way to lose more money. As you can probably tell, I stray away from subscriptions if I can.
When we were first organizing our budget, we saw that we were doing a lot of wasteful spending. We wanted to trim that down, and the easiest way to do that was to go through our monthly subscriptions and cut as much of them out as possible. We were already really good about not having subscriptions to things such as cable (we don’t even have a TV in our house!), but there were so many other things that we were not very good about (gym memberships, for example).
These days, there are so many monthly subscriptions one can sign up for. It makes sense why companies are creating more and more membership programs. It’s a way to reel consumers in and commit them to their product long term. It’s a way for companies to get your money without having to do any further selling. I would recommend you don’t get into that habit. It may be more convenient, but it’s also dangerous because the recurring payments are pulled silently. Therefore, a once-conscious decision to buy a product becomes increasingly unconscious. When you are unconscious about where you’re money goes, then you have no control. Getting rid of subscriptions is a way to get better control over your finances.
- The Ever Growing List of Things I’ve Given Up in the Name of Frugality
- Frugal Challenge: Give Up Alcohol
- Frugal Challenge: Don’t Buy Technology Brand New
A List of Subscriptions You May Want to Cancel
There are many monthly subscriptions that you can consider getting rid of in the name of saving money. I know some of these may seem impossible to let go, but I challenge you to flex those frugal muscles!
- Spotify or Other Music subscriptions
- Netflix or HBO
- Costco Membership (also, Sam’s Club and others)
- Magazine Subscriptions such as Texture
- Make up Subscriptions such as Itsy
- Grooming Subscription Boxes such as Dollar Shave Club
- Clothing Subscriptions such as Stitch Fix
- Meal Prep Deliveries such as Blue Apron or Freshly
- Amazon Prime
- Gym Subscriptions/Memberships
- Movie Passes
- Kindle Unlimited
- Barkbox or other pet subscriptions
- Wine Club
- Coffee Subscriptions such as Beanbox
- Disneyland Passes or other theme park passes
- Music lessons, Pottery Classes, and other hobbies
Which Subscriptions We Currently Keep
While I would love to say that we have gotten rid of all of those things, we are also human and we have kept a few subscriptions for ourselves. Below is a list of monthly recurring payments we currently keep:
- Seamless FP – This monthly fee is a fee for our financial planner. I have spoken extensively about his value and the amount we receive from having him versus not having him is huge. I still, to this day, attribute the fact that we have paid $97,000 towards my student loans to him (see wonderful news below!). If we never had his help, I don’t think this blog would even exist, nor do I think that we would be as frugally weird as we are now. Thanks Andrew!
- Yearly fee for blog – It earns me some income as a side hustle and is something I use every day. The income from the blog offsets the yearly fee for all blog expenses, which include WordPress, PicMonkey, and ConvertKit.
- Internet – I have actually suggested to my husband that we nix our internet, you know, as a social experiment. I have even created a plan to write blog posts on Word and email them to myself and upload via my cell phone which already has a plan under my parent’s family plan. But as a frequent video-gamer and constant reddit user, he values the internet way too much. So we have kept the internet. That I understand, because I can see the value in it.
The True Cost of Subscriptions
Right now, you’re probably thinking to yourself, what’s $10 a month? That’s $120 a year! Let’s take the example of the Movie Pass which is $9.95 a month. The movie pass gets you unlimited movie screening for that month, up to one free movie a day. Did I watch $120 worth of movies in one year? No! The reason? Because not having a pass does not push us to want to see movies. Sure, it’s considered a “value deal“, if you use your movie pass everyday to see a different movie. But, if you did not have that deal, would you spend $120 at the movies? Do you really like movies that much? We spent $20 in the last year at the movie theatres. Plus, you have to calculate your time too. A movie is 2-3 hours long. If you spend 2-3 hours everyday watching a movie so that you can get the most “value” out of this deal, then I suggest you also enter into your calculation the value of your time. What is your hourly work rate? What is your worth? Multiply that by the number of hours you were sitting in the theatres. Can you use that time to work more in order to get an even better value? The answer is probably yes. Personally, I have priorities higher than watching movies. Such as financial freedom. Would you rather watch movies everyday and work until your sixty five? Not me. Like I said, I don’t like movies that much.
The Impact of Getting Rid of Our Subscriptions
Getting rid of as many subscriptions as possible really got us closer towards our goal of paying down loans. It was a practice that significantly trimmed down our monthly budget. What we found was that the subscriptions are what kept us coming back for more. Once we got rid of them, the products were hardly missed. We only took what we needed, which ended up saving us money.
Plus, have you ever signed up for a subscription “just to try it”. Maybe you were offered a really good initial deal. Your intention may have been to cancel it before it renews. But life gets in the way and makes you forget. Or it adds stress, trying to keep track of which subscription ends when, and trying to time your cancellations appropriately. I know I’ve been there, balancing getting the most out of the subscription and avoiding another month of the same stuff. I elected for a simpler life, devoid of all that stress. I wouldn’t trade it for what used to be.
The Good News
We are out of the $500,000’s and are in the $400,000s! We started with $574,034.50 worth of student debt. I am so happy to say that as of the beginning of July, we have escaped the $500,000s and entered the $400,000s! This isn’t to say that we owe it all to subscription cancellations. But subscription cancellations are a good place to start. Why? Because it forces you to flex your frugal muscles. Getting rid of things that you have been repeatedly dependent on is not an easy task. Some part of you is going to want to go back to the gym, believing that free exercises at home are not enough. I admit, unless you have the equipment at home, it’s not going to give you the Arnold Schwarzenegger body that someone may have sold to you as ideal. But it’s enough to keep you healthy and fit. Off course, everyone has their own set of “needs”. I simply recommend evaluating those needs, and assessing them for their true value. How do those “needs” get you closer to becoming the person you wish to be, or living the life that you wish to live?