We’re living in an age of convenience. Groceries can be delivered, clothes can be picked out for you and just about every TV show and movie ever made can be beamed straight into your living room. If I had the money, I could get pretty much everything I need without ever leaving my house.
But unfortunately, I don’t have the money. Do you?
As our society has collectively fallen in love with subscription services, many of us have let them take over our budget. Because these are recurring expenses, it’s all too easy to sign up and forget about your card being charged every month.
It’s time to finally ask yourself -are all of these subscription services worth the money?
Are You Spending Too Much on Subscription Services?
Before you can decide if meal subscription and delivery services are eating up too much of your budget, you have to figure out how much you’re spending on them. This is a very subjective and personal question that depends on your income, total spending and other goals.
Look at your monthly subscription and food delivery spending in Mint, checking to see if the numbers align with your budget. Take the time to sort and categorize the transactions if you haven’t done so in a while. It may help to look through several month’s worth of expenses, because some subscription services like FabFitFun only ship once a quarter.
Spending may also vary based on the seasons or other external factors. You may spend more on food delivery services during final exams because you’re too busy to meal plan. If the seasons change and you don’t have any clothes, you may spend more on personal styling services.
Once you have an accurate account of how much you spend, compare it to your income and other expenses. Spending $50 a week on a meal kit service doesn’t mean anything without context. You need to know how that compares to your other expenses.
How to Cut Down on Subscription Services
If you found that you’re overspending on subscription services, it doesn’t mean that you need to cut them out entirely. Think about how much value each service provides to your life, and prioritize where your money is going.
Make a list of all the subscription services you currently have and how much you spend on them each month. Then rank the subscription and delivery services from most important to least.
Write down how often you actually use the products or services. Be honest with yourself. The goal is to keep the boxes and services that you actually use, love and enjoy on a regular basis. This can help you identify which services don’t fit into your lifestyle – or budget.
Try to be as objective and ruthless as possible here. Yes, you may love getting the monthly Stitch Fix box in the mail, but do you actually keep the clothes they send? Learning to cook with Blue Apron may be a worthy goal, but do you actually like the meals they send?
Once you have a list of essential subscriptions, look at your budget again and determine how much money is left for those services. If the available amount is greater than the total cost, you’re in the clear.
However, if the amount is more than you can afford, it’s time to go back to the drawing board. If you absolutely can’t bear the thought of parting with your subscriptions, you’ll have to look at cuts you can make in other spending categories.
How to Save on Subscription Services
Chances are, you’re paying more for some of your subscription services than is absolutely necessary. Most video streaming services let you watch multiple screens at once so you can split it with friends or family. Some even have student deals if you have a university email address. Your school may even have its own special agreements with certain providers.
If there are a lot of subscription services you want to keep, consider alternating which ones you use throughout the year. Most subscription and delivery services make it easy to cancel and resubscribe later.
For example, if you have a beauty box subscription and a bathroom full of toiletries, quit the service until you’ve used most of the products. Many of these products expire, so you’ll be saving money and cutting down on waste.
If you subscribe services but only use them during a particular season, like a streaming service tied to a seasonal sport, get rid of them and reactivate when you’re ready. You can also do this with streaming services that only have a few shows you’re interested in. Once you’re done watching Stranger Things, for example, you can deactivate your Netflix membership for no penalty.
Seek Alternative Ways to Save
Looking for cheaper versions of your favorite services can also help you avoid overspending. Some grocery stores now have meal kits similar to Blue Apron or HelloFresh. It’s not as convenient, but it’s a much more affordable alternative.
Many companies give customers referral codes they can send out to friends and family. When people use your referral codes, you’ll earn free credit or cash. For example, Barkbox provides a free month if someone signs up for a six or 12-month membership through your referral link.
Sometimes companies will have a special coupon for new customers that use referral codes, like Stitch Fix who provide a $25 bonus for both the new customer and the one who referred them.
You can share these links on social media, by text or through email. Some programs have a limit on how much you can earn with referral codes, but it never hurts to try. If you end up exceeding that amount, you can apply for their official affiliate program to earn cash instead of credit.
If you do cancel a program, check your bank account to make sure you’re no longer paying for it. Some services are guilty of occasionally charging former subscribers even after they’ve quit.
Which subscription service are you going to cut back on this year? Let us know in the comments!
The post Are All the Food Delivery and Subscription Services Worth It? appeared first on MintLife Blog.