Subscriptions are everywhere, whether for entertainment, groceries, or health products. With their convenience, accessibility, and guarantee of offering something new, it’s easy to see why they’re so popular.
While subscription services offer many benefits, they require strict money management and budget tracking. If not appropriately managed, subscriptions could impact monthly income and result in debt.
This guide will reveal how to simplify your subscriptions and manage recurring payments with ease.
The most popular subscription types worldwide
Streaming services are one of the most popular ways to watch TV. From Netflix and Prime Video to Apple and Hulu, they promise on-demand entertainment at a small monthly fee.
However, subscription boxes are also growing in popularity, with more consumers choosing to have products shipped to their door. According to research from Whistl , the following subscription box niches have the most success:
- Grocery and food subscription services
- Shaving accessories and products
- Clothing
- Cosmetic and perfume kits
- Pet subscription boxes
With the sheer availability of products, entertainment and other services, consumers can often get carried away and not factor it into their budget.
Why subscription management is essential
The subscription model offers convenience for users and is also beneficial for companies. Instead of one-time purchases, these companies sign users up for a monthly fee and take payment from their accounts each month.
Failing to manage your subscriptions properly can lead to financial worries. Let’s examine the benefits of controlling subscriptions.
No ongoing charges
An article by The Street reveals that 51% of Americans have subscriptions they don’t want or use. Most sign-ups take a few minutes, and low monthly fees make the deal more enticing.
However, signing up for a service for one movie or trying out a new product could result in a recurring payment being deducted from your account—even when you don’t use the service.
Avoid surprise fees
It’s so easy to subscribe to something and forget about it altogether. While people notice subscription boxes because physical products arrive on their doorsteps, they often miss service-based subscriptions.
It’s common to forget to cancel the plan before renewal, and many companies have strict refund policies, meaning you’ll lose some of your monthly income.
Cybercrime risks
Subscription services store user identities and payment information, making them popular targets for cybercriminals. A Mirror article reveals people can buy Netflix logins and payment information from the dark web.
Failing to monitor your subscriptions means someone could be using your identity and payment information without you knowing it.
Top tips for managing subscriptions effortlessly
Once you control your subscriptions, it’s easier to identify whether you’re losing money and canceling services you no longer need. The following tips won’t take long to implement, and they’ll give you more insights into how you spend money.
Don’t always go for the subscription model
Many services offer a choice between one-time payments and subscriptions. While a subscription can save money, it’s also easy to forget. Sure, you only have to pay a small amount each month, but they’re often more expensive over the long run.
A classic example is software or online service providers like Microsoft. The company offers a 365 Personal licence for €69.00 a year or €7.00 monthly. Choosing the annual subscription requires a one-off payment every 12 months, but you save €15.00.
OK, it’s not a huge amount, but opting for annual or lifetime payments across multiple services can dramatically decrease your overall spending.
Monitor your subscriptions
Signing up for a service is simple, but that often means you forget how many subscriptions you’re currently paying for.
As CNBC reports, around 54% of consumers underestimate their monthly subscriptions by $100 or more, with 24% spending $200 more than they realize.
Depending on how you sign up for subscriptions, it’s relatively simple to monitor them. Apple and Android users can view active and cancelled subscriptions on their phones, while PayPal has an automatic payments section.
Downloading a budgeting app can also help you notice where you’re spending money and make changes.
Use virtual prepaid cards
Using your debit or credit card for subscriptions means the company can take money from your account each month, even if you’re not using the service or product.
Virtual prepaid cards are beneficial for controlling subscriptions because they’re not linked to your bank account. Instead, you’ll pre-load the card with money and use it to pay for your monthly subscriptions.
As they’re pre-loaded, you define how much money you spend, and once the balance is empty, services can’t charge you. You can also unlock Getsby Virtual Card card benefits such as encryption technology and secure authentication.
Choose wisely
The great thing about subscriptions is they’re easy to cancel. You can sign up for a service, experience it and then decide whether to keep the subscription or choose another one.
While many people sign up for multiple services at once, try to moderate your number of active accounts. For example, use Netflix for a month and cancel it when you run out of things to watch. Then, subscribe to another service and follow the same pattern.
That way, you can enjoy on-demand entertainment and other services without spending a fortune.
The bottom line
Subscriptions will continue to be a popular way of sourcing practical products and entertainment—managing them ensures you enjoy their convenience without getting into debt.
Getsby makes money management easier with prepaid virtual cards that don’t require your bank account details or credit checks. The Green Card is reloadable, making it easy to pay for subscriptions regularly.
You can also get a Getsby Virtual Black Card , which offers many benefits including up to 25 cards per month, a €500 load limit and the ability to make transactions with merchants that accept MasterCard.
