How many subscriptions do you pay for each month? Your money zips away via autopay, and you grow accustom to the benefits of such memberships: The trial-size makeup box. The monthly video-game t-shirt subscription. That app that lets you customise at-home yoga routines. The $20 or $30 per month may seem like small potatoes in the greater scheme of your monthly budget. But what if you started thinking beyond the monthly cost? Would you still want that subscription if you had to pay up front for it?
Reddit user ligmapolis shared this tip:
Think of monthly subscriptions in terms of yearly cost. A $30 subscription is $360 yearly. Is it worth it?
It’s so simple, but it’s the kind of advice that makes you start ticking off the mental list of all those little things you’re paying for each month.
Thinking about these expenses beyond your monthly payment shifts your mindset from one of convenience to one of value. You might see a new membership box and think, “I love oranges, and it only costs $15 per month to have a box shipped to my door!” But do you love oranges enough to spend $180 a year on oranges alone?
This multiplication analysis of your memberships and subscriptions can also help you decide which services you’re only half-heartedly into, and can trim from your budget. Consider it a refresher for where your priorities lie. You can’t live without your yoga routines, so that’s a non-negotiable. Maybe you don’t need the t-shirt of the month club, though.
If you want to reach expert level subscription hacking, take a look at the subscriptions you value most and find out if there’s a discount for paying up front.
I used to subscribe to a business accounting service that cost $35 per month, but offered a discount if you paid once for the whole year. Paying $360 got my monthly cost down to about $30. If your budget is flush with cash and that subscription is a priority to you, you might enjoy nabbing a discount to the tune of almost $70 by paying all at once, like I did.
Take a look. Which memberships and subscriptions are worth paying for when you think about the annual cost?