In the past, I would look at my bank account at the end of a month and just wonder, where has all my money gone? I didn’t live an extravagant lifestyle, I earned a good salary and yet whatever money came into my account, it seemed to find its way out again. That is when I started to budget more seriously. I portioned some of my money to savings straight away and worked hard to understand what I was losing money on. I found a number of things I was simply spending too much on. I will highlight one category today as I found I was spending way too much on it and not seeing the benefit.
Subscription and Membership Services
A broad category but something you need to look into. Subscriptions are stopping you from saving before you have even begun the month. Do you subscribe to monthly magazines? Spotify? Netflix? Hulu? Disney? Are you a Costco member? Are you a member of an expensive gym that you just don’t use?
While I am not suggesting you cut all of these things because they cost money, I am saying that you should look at how much you are spending on each versus how much you use them and compare them to the free alternative. Memberships in warehouse stores may be useful when you are bulk buying a lot but if you are preparing meals for one or even a small family it is unlikely to be worth it for you.
You have an expensive gym but do you need it? If you really love it then ok but if your aim is to get fit you can do that at home and in the outdoors. While the world is moving to streaming services, how many is too many? If you are subscribed to streaming, it really is time to cut the cable, even if they “still have that one show that you just love to watch”.
Overall you need to look at what money is coming out of your account each month without you moving a muscle. It is unlikely all are necessary and they are making it difficult for you to save anything. In trying to get your savings up and spending down, first look at your fixed expenditure and make it as low as possible, then look at your variable spending each month. Spend smart and save easy.