These days, there is a subscription for almost everything.
Here are a few surprising statistics:*
– Collectively, Australians hold over 56.7 million subscriptions or memberships.
– With most subscriptions held by people aged between 15 and 84 years (approximately 19.8 million people), this is an average of three subscriptions per person, costing almost $40 per month.
– 11 per cent of Australians are paying more than $100 per month for subscriptions or memberships.
Some more worrying statistics:*
– Australians spend $3.9 billion on paid apps, subscriptions and memberships they don’t use.
– 62 per cent of Australians pay for services or subscriptions they have forgotten about.
– 44 per cent have never cancelled subscriptions they aren’t using.
Possibly the most concerning:*
– 1 in 5 Australians have never checked their bank or credit card statement.
– 4 in 5 Australians avoid taking action on their finances because they’re too busy, it takes too long, or they don’t know where to start.
So what are we spending our money on?
While subscribing to a service may have started out as a convenience measure, or perhaps seemed like a better option than buying things ‘as needed’ at a higher price, it appears we may have gone overboard.
Seventy per cent of our subscriptions are for entertainment.* There’s television and movie streaming subscriptions such as Netflix, Amazon Prime Video, Fetch, Stan, Kayo Sports and Foxtel; music streaming subscriptions such as Spotify and Apple Music; book and audio streaming subscriptions such as Kindle Unlimited and Audible; and newspaper and magazine subscriptions. Then there are technology services such as iCloud or Dropbox; educational subscriptions for children such as Reading Eggs and Mathseeds; health and fitness apps such as Strava and Map My Run, music apps such as Ultimate Guitar … the list goes on.
Most subscriptions will break the $100 barrier over the course of a year.* When that is multiplied by three, five or 10 subscriptions, we are suddenly talking big money – and potentially big savings.
What’s the solution?
Here’s how you can avoid being one of the worrying statistics listed above.
– Search ‘subscription’ in your email Inbox and make a list of all your subscriptions.
– Double-check these by going through your credit card/bank statements/Paypal account and making a list of monthly payments.
– Cancel any subscription you aren’t using regularly. You can always resubscribe if you change your mind. Paying a one-off fee for services only when they are required can turn out to be far cheaper overall.
– Research alternatives. There are free options available for some of these services, so take a good look around.
– Consider using a subscription management service such as Truebill or Trim that will find and categorise your recurring payments, text you when it’s payday and even cancel subscriptions for you.
The visual reminder of all the unnecessary things you are spending your money on each month may be all the impetus you need to cancel some of those subscriptions and spend your money more wisely.
Cairns Mortgage Broker – Jason Thomson is a Mortgage Adviser and Finance Broker based in Cairns with clients all around Australia. Client reviews featured on his website prove that Jason is a trusted industry professional, facilitating great outcomes for his clients. Using his wealth of experience in financial services, he thrives on delivering superior service. Jason is very approachable and is always looking for new clients to help in the often confusing world of finance and property. Offering a no fee service, you’ve got nothing to lose by having an obligation free chat with Jason today.