In today’s convenience-driven world, subscriptions are ubiquitous. From streaming services and fitness apps to meal kits and premium newsletters, monthly or annual subscriptions have seamlessly crept into our lives. Subscriptions aren’t the enemy. However, if left unchecked, they can treacherously drain your wallet. Keep them intentional, not habitual and you’ll be surprised how much you can save over time.
Subscriptions are designed to feel reasonable. INR 299 here, another INR 499 there, can seem harmless. But once they begin to stack up, you could be shelling out thousands of rupees a month for services you barely remembered you still had a subscription to. The low monthly price point tricks your brain into overlooking the actual annual cost. INR 499 a month is almost INR 6,000 annually. Multiply that by 5-6 subscriptions, and your bank account becomes a serious casualty.
- Out of Sight, Out of Mind
Many subscriptions are set to auto-renew. Once you sign up, you forget about them. That forgotten music app or online course keeps charging you while offering little in return. You may not notice these charges until you dig deep into your bank statement, and by then, months of unnecessary expenses have already vanished.
Subscriptions are a sneaky form of lifestyle inflation. As your income increases, you add more “small luxuries” without realizing they’re collectively eroding your capacity to save or invest. This can delay big financial goals like building an emergency fund, investing in mutual funds, saving for a home or retirement.
Here are some ways to free yourself from the Subscription Trap:
Take some time out to make an exhaustive list of all your subscriptions. Go through your bank statements to make a list of recurring charges.
Ask yourself if you actually need and use everything on the list. Immediately cancel the ones you barely use.
Opt for family or shared plans whenever possible. That way you can have support to foot the bill.
Another easy way to avoid double charges, especially on OTT platforms or video apps, is to alternate. This might involve some extra research, but find out what shows or movies are coming out that interest you. Make a priority list and pick an app that offers the most for a particular month. Only get the one app for that month. Next month, you can switch to a different app or platform depending on its offerings.
Set a monthly or annual subscription budget. Be more conservative and try to stick to that number.
With these timely measures you can prevent the recurring expenses from snowballing into something that chips away at your savings.
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Disclaimer: The article is for information purpose only. The views expressed in this article are personal and do not necessarily constitute the views of The South Indian Bank Ltd. or its employees. The South Indian Bank Ltd and/or the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial/non-financial decisions based on the contents and information’s in the blog article. Please consult your financial advisor or the respective field expert before making any decisions.