Most Of Us Grossly Underestimate Our Subscription Service Costs

July 30, 2018

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A world of limitless entertainment and convenience has made out lives easier, but this convenience is costly as a new survey finds that 84% of Americans grossly underestimate their monthly subscription-based spending. The survey found we guess that our monthly subscription services, such as Netflix, Spotify and Playstation Now cost around $80 a month. But when those surveyed actually looked at all the services used, that monthly number increased to almost $112 a month. And then when subjects were shown an exhaustive list of subscription services and categories, which was expanded to include the Wi-Fi and cellular service required to use these services, as well as wellness apps, gaming services, digital newspaper and magazines subscriptions, meal kits, subscription boxes and more, subjects realized they were actually dropping $237.33 a month on average, a 197% increase from their first guess to what they were actually spending. It's because these individual services tend to be cheap. Netflix and Hulu start at $8 a month, and while Amazon Prime is $119 for the year, that works out to just under $10 a month. Meal kits average $20 a box, or $60 for the week if you order three meals. All those little fees creep up, especially since the majority of them are automatically deducted from your bank account or charged to your credit card, you forget that you’re even paying for them. So it may be worth to sit down and do a subscription audit every couple of months to see whether you’re really getting your money’s worth. If you haven't used a service in the last 30 days, go ahead and cancel it (just remember to do it as 70% said they’d have cancelled their subscriptions previously except, they forgot). Eliminate redundancy. No need to pay for two subscriptions services if they offer the same programming. Split up the services among friends. For instance, you could pay the monthly subscription for HBO Now and invite your friends to watch Game of Thrones at your place every week, while another mutual friend of yours pays for Netflix and hosts you and your social circle when you gather to watch Stranger Things at their place.

SOURCE: Moneyish

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