The subscription service has transformed the way we use products such as entertainment to software, however, it has been a kind of new drain on our wallets, one that many individuals hardly realize exists. The typical consumer is a subscriber to 10-15 recurring subscriptions most of which are not utilized frequently.
The concept of subscription as a business model is brilliant to companies and difficult to the consumers. The first price is like nothing, the convenience is tangible, and the auto-renewal option ensures that you do not actually choose to continue paying, you simply forget to cancel. This is a psychological gimmick that Americans lose billions a year on.
Overwhelming wastage is identified as a result of a subscription audit. Get your credit card and bank statements of the last three months and circle all the recurring charges. You are most likely to get subscriptions that you had forgotten about, free trials turned into paid subscriptions, or services that you believed that you cancelled.
This leakage can be managed by developing a subscription management system. Consist of setting calendar notifications a week prior to renewal dates, subscriptions on a specific credit card, and institute a policy of any additional subscription must cancel an existing subscription. These plain systems do not allow the build-up.
It is not about whether a subscription is of any value, but rather about whether it is worth the price. The monthly service of $10 would be equivalent to 120 per annum- would you write a check to spend 120 a year on the service? This restructuring of the mind assists in making the decision of what to retain better.