Managing Memberships and Subscriptions

This article provides some advice on what to look out for, and what to avoid when it comes to long term commitments.

By Xavier Royer — June 22, 2023

Tags: expenses, financial planning, money management, saving money

Last summer, I decided to become a golfer. Historically, my summers were often spent in the air conditioning playing video games barring any other responsibilities. I decided golf would be a good way to break this trend and get me outside in the fresh air more often. I ordered a set of clubs, bought some cheap balls from Walmart, and off I went. And then I went again. And again. And again. For the unfamiliar, golf is not the cheapest sport to play. It cost me around $50 a round, and I started to feel it financially as time went on. Eventually, I did the math. With a generous pro-rated price from the clubhouse guy who could recognize my face at this point, I bought a membership. The membership was still expensive, close to a thousand dollars. But I probably played at least 40 rounds of golf last summer, which means my membership actually saved me as much as I spent. Additionally, I felt much freer to play more — it was paid for, so may as well! I could also guiltlessly stop early if my back hurt or the weather or bugs were bothersome. Not only did I save money in the long run, but my enjoyment increased as well.

Why share this story? In a previous article I wrote about overpaying on quality items can pay off in the long run. I also believe that memberships or subscriptions can sometimes have great values. But there are also some traps memberships can get in. This article provides some advice on what to look out for, and what to avoid when it comes to long term commitments.

One and Done Beats Monthly

Fewer payments usually mean cheaper. Even if it stings in the moment, opt to pay for the full year all at once rather than monthly. Some memberships, like my golf membership or zoo membership, only offer that option. With memberships like these, be sure to verify if they are 12-months or end on a certain date regardless. If it is going to end on a set date, be sure to renew sooner to maximize the value you receive. Amazon Prime and EA Play both offer excellent yearly deals for shoppers and gamers, respectively.

Beware Free Trials and Automatic Renewals

This is very standard advice that I am sure most students will have gotten at some point, but it always bears repeating. I paid stamps.com, a website I never actually purchased anything from, $20 a month for probably three years. I attempted to cancel probably twice, but eventually had to go through my bank to get the payment stopped.

Rocketmoney, formally Trubill, is an app that can help with this. Not only that, but it will actually track your general spending and bills, giving you alerts when rent is coming up and helping you keep tabs on how much you spend each week and on what. If you try to cancel after a free trial or have automatic renewals on an annual subscription you are not planning on renewing, do your due diligence. Some memberships have begun offering middle grounds where you can pause your subscription. If, like me, you have a bunch of Audible credits stashed, consider pausing it while you burn through some.

Watch out for Bundles, Student Discounts, and Promo opportunities

The Disney+, ESPN+, and Hulu bundle is incredible and not taking advantage of it if you are interested in even only two of those services is crazy. Bundles can often be random or facades for selling you extra things you do not need, but if you are using both services, bundle away. Some memberships also work in more than one place. Many of the zoos and aquariums across the United States have a reciprocity program, which means flashing your membership from one can get you half price tickets at another. Speaking of Hulu, did you know for five dollars a month you can get both Hulu and Spotify? Everyone can afford five dollars a month. Student discounts can be awesome, keep an eye out for them in July and August especially. Speaking of Spotify this time, for my podcast listeners out there, keep an ear out for those promo codes. Not only are you helping your favorite creators, but those codes are often decent deals on services you considering using anyway.

These are just a few of the ways that subscriptions and memberships can save you money as well as ways to make those services more affordable. The last piece of advice I will leave with is to make sure you want the product or service you are paying for. Rewards programs, for example, can end up leading you to buy things you don't need because of some random savings or offer those flashes on your phone (looking at you McDonalds). However, I feel people should be more willing to commit to longer term services for both consumer satisfaction and financial benefit reasons.

Xavier Royer

I am currently a full time instructor at a William Penn University, a small private university in Iowa. I am the lone political science faculty member there. In my time teaching, I have already connected with an incredible cohort of students in ways I could never have expected. Partnering with SAGE will allow me the opportunity to help even more students across the globe navigate those tricky questions.

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