Even if you’re on a budget, you may not have considered that you could improve your cash flow even further by eliminating unnecessary subscriptions. It is very easy to presume that a few pounds or dollars here and there really isn’t going to make very much difference. You may have even forgotten that you are paying for subscriptions, especially if they are debited from your account on a quarterly basis rather than monthly. However, removing them can really make a difference, for the following reasons.
Encourages you to keep tabs on your direct debits
It is very easy to rake up a number of direct debits on your current account and possibly other accounts too and then forget about them. If you take the time to look through your direct debits, you may just realise that you had forgotten about some of your subscriptions, particularly if you have moved house and are no longer even receiving the magazines or services that you are paying for. It also ensures that you can get to grips with all your monthly, quarterly and annual outgoings, whether you are able to eliminate them or not.
Removes other unnecessary expenses
Eliminating unnecessary subscriptions has a wider implication than just getting rid of a few direct debits; it forces you to think about your spending habits in general. If you are honest with yourself, you will probably find that you have a lot of spending habits, whether by direct debit or not, that are not healthy and that you can easily do without. You may, for example, have got in the habit of ordering takeaway once a week, but once you evaluate your outgoings and how much you could save by eating in, you are far more likely to give it up.
Simplifies your outgoings
A few dollars or pounds here and there on subscriptions and other luxuries can become very hard to keep track of if you have too many of them, especially if you have more than one bank account that you use to cover the costs. By eliminating subscriptions, you are far more likely to know exactly how much money you have in your account(s), which will enable you to know how much money you have for more important bills. You may also decide to consolidate your bank accounts so that you only have one or two accounts and can therefore be more financially efficient.
Encourages you to cut down on necessary direct debits
There are some direct debits that you cannot eliminate; for example, utility bills, school fees and rent or mortgage payments. However, while you are looking at ways to cut out unnecessary subscriptions and other payments, you can use the opportunity to see if you can save on other bills too. For example, you could use price comparison sites to see if you can pay less on utility bills. You could also call up your telephone and Internet provider and see if they can offer you a better deal. If they want to keep you as a customer, they may be willing to give you a discount.
Don’t underestimate what eliminating a few unnecessary subscriptions can do. It will hopefully enable you to get to grips with all your spending habits and free up cash that you can either save, use to pay off debts, or spend on more important things.