Cancel some monthly charges before taking on others
May 15th, 2008 | by mbhunter |Just when I was all excited about my cheap exercise bike, my wife comes in to show me a postcard that’s announcing the opening of a YMCA in our county this fall. The membership is $69/month for a family membership. Over eight hundred a year.
She wanted to get a membership for a number of reasons, all of which are good, but that’s not really the point. I initially grimaced at the thought of taking on another monthly payment like that. But there were a $49/month charge and a couple of $10/month charges that we could cancel by the fall. That adds up to about, well, $69/month! Seeing that our overall expenses would stay the same, I agreed to sign up for the YMCA.
Just like it’s a good habit to get rid of something old before bringing in something else, it’s also a good idea to shed some expenses that have outlasted their usefulness when there’s another expense that is wanted. Let some subscriptions go before taking on another. That way, if things were under control before, they’ll be under control after.
Recurring charges are great for business because once the business has a customer’s permission to charge their card, it continues until it stops. The only reminder of that charge might be on the credit card statement mixed in with all of the other charges. It blends in and can go unnoticed or barely noticed. It’s likely that one charge isn’t a budget buster, which makes a membership an easier sell because it’s “only” so much per month.
Once a bunch of recurring charges are running, though, it can add up to serious money, which is why it’s a good idea to review those charges and see whether some of them are no longer worth it. A really good time to do this is when you’re about to take on another one.
