Calculate the Annual Cost Before Subscribing
How many subscriptions do you pay each month? Your money disappears through auto pay and you get used to the benefits of a membership like this: a makeup trial box. Monthly videogame T-shirt subscription. This is an application that allows you to customize your yoga classes at home. $ 10 or $ 20 a month may seem like a small potato in a larger outline of your monthly budget. But what if you start thinking about more than just monthly expenses? Would you still want this subscription if you had to pay upfront for it?
User To Reddit ligmapolis shared this advice :
Think of monthly subscriptions in terms of annual cost. A $ 20 subscription costs $ 240 per year. Is it worth it?
It’s that simple, but this is the tip that gets you to start mentally making a list of all the little things you pay for every month.
If you think about these costs, in addition to the monthly payment, your mindset changes from convenience to value. You might see a new membership box and think, “I love oranges and it only costs $ 10 a month to get the box to my door!” But do you love oranges enough to spend $ 120 a year on oranges alone?
This analysis of the multiplication of your membership and subscriptions can also help you decide which services you are using without much enthusiasm and can cut from your budget. Consider this a reminder of your priorities. You cannot live without doing yoga, so it is non-negotiable. Although you may not need the club jersey of the month.
If you are looking to hack a subscription at an expert level, take a look at the subscriptions you value the most and see if there is a prepaid discount.
I used to subscribe to an accounting service that cost $ 24 a month but offered a discount if you pay once for an entire year. By paying $ 250, my monthly expenses dropped to about $ 20. If your budget is full of cash and you prioritize this subscription, you can get almost $ 50 off by paying all at once, as I did.
Look. What kind of membership and subscription is worth paying for when you think about the annual cost?