Could Elon Musk be the straw that breaks the monthly service charge?
Probably not, because many Americans continue to push money to the center of the service fee table. Case in point: Musk’s $8-a-month “blue check for the masses” gambit is sure to have plenty of takers.
That’s the problem with forgetful subscription consumers.
The truth is, monthly bills are so easy to get and can slowly stack up, consumers may not realize they’re paying too much for Amazon Prime, Apple TV, and the New York Times (among others). which is a monthly subscription fee.
According to a recent survey by market analysis firm C&R Research, a monthly subscription costs US consumers an average of $219 per 30 days. A separate study from Statista shows that US adults have an average of 12 monthly subscriptions, with millennials averaging 17 subscriptions per month.
As crazy as that sounds, most Americans don’t know that they have a lot of money for their subscriptions. The C&R study noted that survey participants believed they owed only about $86 per month for subscription fees – $133 less than they actually owed for those fees. Additionally, of the many subscription fees on a consumer’s auto-pay account, 42% of all subscribers are unaware that they are being billed for the service.
“If you can’t remember all the monthly service fees you pay without checking your bank statement, you probably have too much,” says SuperMoney.com financial planner Andrew Latham. “Feeling anxious about your monthly service charge is another red flag for a consumer who needs to start making changes.”
TheStreet
Dealing with Multiple Monthly Subscription Fees
There is an old British military quote that says “Who dares, wins. Whoever sweats, wins. Whoever plans, wins.”
This is also your battle against the aggressive accumulation of monthly subscription fees. With a solid plan of action and disciplined execution, you can prevent, if not eliminate, those pesky monthly subscription plans.
Here is a checklist of tips to do just that.
Know where you stand. For starters, look at your monthly service bill (check your bank statements for best results) and see how much your subscription services cost.
“Then determine which services you can’t do without and consider paying for them on an annual or even bi-annual basis,” Latham told TheStreet. “You can get a lot of savings by paying in lump sums.”
Start scaling back services you don’t need or use. Now is the time to start thinning the herd and cancel subscription services you don’t use or need.
“For example, you don’t really need Netflix in 4K if you don’t have a high-end TV to pair it with,” Latham said. “It’s also a good idea to negotiate with service providers for a lower fee or even share an account with a friend or relative.”
Press the pause button. If you’re not sure if a monthly service fee is worth the cost, take a break from the service for a month or two. “You may find that you can do well with free alternatives, like a library card, or an account with a free streaming service like Roku Channel or Tubi,” Latham added.
Always keep an eye on the cost. It is always a good idea to check for services that may have increased in price. “I recently negotiated lower cable and satellite radio rates simply by calling customer service and asking for my old bills back after the introductory promotions ended,” said the Bankrate senior analyst. of the industry Ted Rossman.
Go the DIY route first. While there are great mobile apps that help manage monthly subscription fees, try your own way to manage subscriptions first.
“There are some services like Trim and Rocket Money (which absorbed the service formerly known as Truebill),” Rossman told TheStreet. “However, they charge a fee, so take a do-it-yourself approach if you can.”
“It’s ridiculous to pay a subscription fee to help lower your subscription fees, but some people find it useful to automate the process and get outside help,” Rossman added.
While you’re at it, look for even bigger savings. Once you’re in full-bore savings mode, step on the ladder and check your larger monthly payments to really save money.
“Monthly subscription fees can cause a lack of cash flow, but it’s not the automated expenses that cause cash flow issues for people, it’s the manual ones,” said Carson Allaria Wealth Management partner Joe Allaria. “Cars, housing, travel, and food purchases are all non-subscription expenses that have made the biggest dents in many messy budgets I’ve seen.”
That’s especially the case for Americans with cash flow problems.
“If you’re in that scenario, cut your $500-plus per month car payment, stop booking expensive vacations, and stop eating out,” Allaria says. “It’s much easier to shave hundreds or thousands off your monthly budget by making a few big changes than trying to cancel every subscription you have, to free up a small amount of cash flow at the end of the month.”
