I hate subscriptions. Businesses love them because it’s recurring revenue and can make for an insanely valuable company. But they can be these sneaky little (or big) leaks in your budget than can cost you HUGE over time. I try to minimize mine, but I’ve definitely been sucked into signing up for a bunch over the years.
I was thinking about upgrading a couple security cameras I have at my house to Ring cameras, when I realized that would INCREASE the cost of the subscription I’m already paying for my doorbell. (Did I say that right. I’m paying a subscription for my DOORBELL?) It gave me pause, so I collected every subscription I’m paying and laid it out here.
MOST of these are luxuries because I’m rich. If I were poor I would absolutely be cutting down on these dramatically. I was borderline broke for most of my 20s and 30s. If I was still there I would NOT be paying for:
• Ring
• Washington Post
• Pandora
• Tesla Internet
• YouTube TV
• Fitness Coach
• Property Tax (I’d be paying rent)
In addition, I would drastically cut down my cost of insurance (cheaper car, no homeowner’s insurance, no umbrella insurance). I also think I could get a slightly cheaper health insurance plan. All that combined would drop my monthly subscription cost from $1,777 to $419! ($300 of that would be the health insurance.) That’s a massive savings.
How much are you paying for your subscriptions? Is there room to trim the fat?
As always, reminding you to build wealth by following the two PFC rules: 1.) Live below your means and 2.) Invest early and often.
-Jeremy
