Money tips

Subscriptions: avoiding the snowball effect

Subscriptions costs add up. It's important to stay subscription savvy - making sure you're only paying for what you use and getting the most out of it. 

The cost of convenience

With many of us living busy and fast-paced lives, it’s no surprise that companies usually advertise subscription services on the basis of convenience. 

Paying smaller amounts regularly can seem more convenient and affordable than a bigger upfront cost. However, choosing convenience usually comes with a cost.

Most subscriptions automatically renew every month, making it easy to forget that you’re paying for it if you don’t review your statements regularly. Service providers know that many people will continue paying even after the service is no longer useful or important to them.

Subscription creep

Each little cost adds up, often without you realising how much of your money is going towards these services - often called “subscription creep”. Each service on its own doesn’t seem like much, but together they can have a really significant impact. For example, six subscriptions costing $20 each could cost $120 per month, more than $1,400 over a year.