In modern society, a popular procedure to pay for products and services is via a monthly subscription. Instead of purchasing an item with a one-time payment, more and more companies are offering their products or services only if you sign up to pay a certain amount every month.
The benefits of monthly subscriptions are that you can try the product or service without paying a large amount of money upfront. As always, read the contract and check the cancellation policy, but many of these services allow you to cancel at any time. The drawbacks of this arrangement are that you can quickly acquire several monthly subscription charges which can quickly throw your budget out of whack.
Here are some tips when assessing a monthly subscription service.
- EVALUATE THE SERVICE – Exactly what are they offering you for a monthly subscription fee? Is it the ability to watch select videos, participate in activities, have personal questions answered and/or call and converse with a person? What is being offered and what is the cost?
- DETERMINE IF IT IS A WANT OR A NEED – If you need a services for work or other necessary reasons, paying the monthly fee unavoidable. Of course, monthly utilities are a need and cell phones have become necessary to live in these modern times. A subscription for programs required to complete work tasks and for important daily activities are also most likely needs. However, most other monthly subscriptions/fees fall into the “want” category of spending. It is something you want which you believe will improve your life and assist you in enjoying your life more fully, but you don’t need it to sustain your life.
- ANALYZE THE BENEFITS OF THE SERVICE – Will the service really improve your life? How do you anticipate using it and how frequently? If it is an exercise program, how often will you check in and work out with the trainer? How do you anticipate you will implement the program into your life? Do you plan to fully participate in the program or use portions of it?
- READ THE CONTRACT – Read any rules and requirements. Read the contract. Is there a minimum amount of time you must pay the monthly fee before cancelling? Do some research to see if other customers have found the value of the program is worth the cost or if they felt they were overcharged or mislead in any way.
- REVIEW ALTERNATIVE OPTIONS – Are there other companies that provide similar services for less? Can similar services be used or obtained for free? For example, motivational or exercise videos can be obtained from a variety of experts for a monthly fee; however, thousands of these videos can also be obtained online for free.
- CAN YOU AFFORD IT – Evaluate your currently monthly an annual bills as well as your current spending habits. Write a list of all the other monthly subscriptions/fees you are paying for. These monthly charges can quickly add up. Determine if you can afford another monthly service fee. YES, DETERMINE IF YOU CAN AFFORD IT. If you are already paying a significant amount of monthly fees for subscriptions, and determine if you are using them and/or benefiting from them. Cancel unneeded services before you commit to an additional service. And be sure you can afford it before you subscribe.
- DECIDE IF YOU WILL “BE A SUBSCRIBER” – After you have evaluated all of the benefits, options, pros and cons, make a conscious decision to accept or deny the monthly service.
- CREATE SOME GUIDELINES FOR YOURSELF – If you decide to subscribe and pay for the service, create some guidelines for yourself. How often will you engage with and tune in to the service? How many hours per week will you spend using the information and implementing the recommendations? What benefits and positive outcomes do you expect from the service? Write down a plan for the service.
- COMMIT – Before you hit the “accept” button, commit to using the service and information according to your plan.
- EXECUTE – You did the research, analyzed the service and have decided to make a monthly investment. Click the “accept” button and accept the service into your life. Engage immediately and frequently. Use the tools in your life. Share the information and service with friends. Ask their opinions and listen to their opinions/suggestions related to the content.
- FOLLOW-UP – Assess the use of the service (each service you are paying for) monthly. Are the services helpful, beneficial and easy for you to use? Are you using them as you planned? Are there unanticipated obstacles to using and benefiting from the services? Are they adding value to your life? If they are not helpful, effective and worth the cost, cancel the subscription.
At the end of the day, month, year, you are responsible for your financial choices. Additional services and charges are a significant part of modern day society and we must be diligent with assessing, evaluating and making the best decisions for our individual financial landscapes.
Photo by Maddi Bazzocco on Unsplash