It’s hardly a secret that inflation has been wreaking havoc on consumers for well over a year now. In fact, many people have added to their credit card debt and raided their savings just to cope with higher living costs across the board.
You’ll often hear that cutting back on spending is a great way to cope with inflation, and there’s certainly a lot of truth in that advice. But if you’re already living pretty frugally, there may only be so much you can cut back on.
That said, you may be surprised at the number of digital subscriptions you’re paying for needlessly. And cutting even one of those from your budget could go a long way.
Have you reviewed your digital subscriptions lately?
A recent survey by Forbes Advisor found that 83% of consumers don’t conduct regular, comprehensive reviews of their digital subscriptions. That’s a mistake that could prove costly, especially at a time when money may be tighter than usual.
Let’s say you signed up for a free streaming service trial three months ago, only you barely used it. You may now be at the point where your credit card will be charged for that service in full — and needlessly so, since you’re not getting good use out of it.
The last thing you want is to face added charges due to sheer forgetfulness. And that’s why it’s a good idea to comb through your credit card statements every two to three months, see what digital services you’re signed up for, and make sure they’re worth keeping.
If you’re only subscribed to a couple of services, you may be fully aware of the subscriptions you have. So let’s say, for example, that two years ago, you cut the cord with cable and replaced that monthly bill with Netflix and HBO Max. If you’re absolutely confident you haven’t added any other services to your personal mix, and you know you use those two services regularly, then by all means, skip the audit — and keep paying for that content.
But remember, digital subscriptions can come in forms other than streaming services. Maybe you signed up for a $5-a-year promotional online subscription to a magazine or newspaper you like to read on occasion. For $5 a year, you may be able to justify only reading a single article once a week. But once the cost of that subscription rises to $5 a month, it may be a different story.
Don’t spend money on subscriptions that don’t deliver value
At a time when living costs are so high, it’s important to be judicious in your spending. It’s one thing to pay for a subscription to a music service you use daily on your commute to work. It’s another thing to spend money on a streaming service you use for an hour a month.
Review your digital subscriptions regularly to get a sense of what you’re paying for, and then assess each subscription individually to see if it’s still worth it. And if you’re not sure, err on the side of canceling. You can always start paying again if it’s something you come to miss, but you might as well save your money until you reach that point.
