Top 5 Ways to Save Money on Subscriptions to Achieve Financial Independence

Are you paying too much for your subscription services? Are you taking advantage of the hidden discounts you may not have heard of?

What does this video have anything to do with financial independence and retiring early everything and one of the first steps to achieving fire is to cut unused expenses a majority of you watching this video right now have a subscription service or two that you barely use including me and i went through a period of time when i didn’t watch netflix for almost a year

But i still kept paying for the service it’s a waste of money no matter how much money you make or the size of your net worth why the heck should i care about my subscriptions when they’re just 10 15 or 20 bucks a month because according to cr research americans spend on average 219 dollars a month or 2 600 a year on subscriptions and that’s two and a half times

More than the original estimate and what if you could save two thousand dollars a year on subscriptions now i want you to look at it from a different perspective what if you could invest that two thousand dollars a year instead because two thousand dollars a year in a stock market with a 10 annual return for the next 20 years that’s 154 000 in 20 years if you’re on

The fire journey you should treat every dollar as an investment because every dollar you invest today is a day you can potentially retire earlier and according to the research here are some of the most forgotten types of subscriptions your cell phone internet tv or movie streaming services and amazon prime and 22 percent of the people they surveyed felt overwhelmed

By the number of subscription services they subscribed to and about 75 percent of consumers said they forget about the subscription services because they’re on autopay to their credit cards and gen z are the ones that are most likely to forget while boomers are the least likely ones to forget about their subscriptions and most consumers are looking to cut back on

Their subscriptions in the year 2022 due to high inflation not to mention netflix and other companies are looking to crack down on shared devices if you’re brand new to my channel my name is sai and welcome so in this video i’m gonna talk about the top five ways to save money on your subscription services and let me show you the subscriptions that i currently have

For personal use and i have a lot of them for personal use we have apps like netflix hbo apple 1 and the disney plus bundle i only have youtube tv six months out of the year during the football season just to watch the colts win the super bowl for the monthly total it’s about 150 or almost 1 1800 a year just on subscriptions and it still feels like a lot sometimes

So if i had to cut something it would have probably be netflix hbo youtube tv and showtime i don’t think i can ever cut youtube premium amazon or apple one because i use them almost all the time we get the disney plus bundle and peacock for free anyway and i’ll explain how that works later on in this video for business use i have grammarly canva epidemic sound vpn

Uh wix dropbox google and other apps and i pay about eighteen hundred dollars a year on those uh subscription services but because i use them strictly for my fireside chat business i can write them off as business expenses and let me know in the comment section down below if you use any of them and if you have any savings hacks you want to share the first tip is

To buy the annual plan if it’s available to you because the annual fees are almost always cheaper than the monthly fees you can save on average 15 to 20 percent just by selecting the annual subscription now i understand that initially you’re thinking 120 bucks is a lot if you’re compared to 12 bucks a month right you might not have enough to budget for a 120 200

Or 300 for the annual subscription i have a way for you to budget for your annual fees and most people get paid every two weeks or only bi-weekly basis what you want to figure out first is how many subscriptions you have and when you make those annual payments for example let’s say you pay 150 bucks a year for hbo max in february uh 200 bucks for disney plus in

April 140 bucks for amazon prime in july and maybe 500 bucks for the gym membership in october if you get them to spread out even farther the better we have a dedicated savings account just for the annual fees and if you just deposit 50 bucks every two weeks into the savings account you’ll have enough cash each time to pay for your annual subscriptions throughout

The year it’s psychologically more effective because you don’t feel like you’re paying too much for each annual payment and you can download this spreadsheet and other financial independence resources for free by visiting firesidechat.com contact the second tip is to deduct a portion of your subscriptions as a business expense for example let’s say you have a side

Hustle for graphic designing or video editing you could write off your software purchases or subscriptions if your business requires them to operate and i have a youtube channel obviously and i need my video equipment and software to make my videos and you could even write off your amazon business prime if that’s what you use to get things delivered to operate

Your business you can even write off a streaming music service like spotify if you can prove it’s primarily for business use but it can be pretty tricky sometimes but it’s probably harder to argue that you use netflix or hbo max for business right another thing you can write off is your home internet service and if you pay 100 bucks a month for your internet and

You use 70 of it for your business then you could deduct 70 a month or 840 a year and if you use your phone for your business you can deduct a portion of your phone bill as well and i would write down everything you use in your home office to make things easier when you file your taxes you can check out the irs instructions for schedule c on form 1040 or get with

A cpa to make sure you file your taxes correctly and another way to save money on subscriptions is using the bundle service and we pay zero dollars for disney plus hulu and espn plus because we have the verizon plan and if you have t-mobile i believe you can get netflix for free if you have paramount plus you can get a bundle of several services like cbs showtime

And mtv if people still watch that i also have uh some like apple one bundle which includes apple tv plus apple music apple arcade icloud news and fitness now you can even save more money if you’re a college student or a member of the armed forces verizon t-mobile and att offer a military discount for amazon prime you can get a student discount at about half the

Price you can also get the college discount for a bundled package of spotify hulu and showtime for just 4.99 a month discovery plus offers a 40 military discount and 25 student discount on its monthly subscription price you can also get youtube premium for just seven dollars a month instead of twelve dollars a month if you’re a college student and tip number four

To save money on subscriptions is using the free trials as much as you can look most companies want you to stay on as their customer and they would rather lose money to free trials than lose losing subscribers and i’ve called companies in the past to get a discount or extend the trial for another three months six months or even a year right before my free trial

Ended and i would say about ninety percent of the time it works and it also depends on whom you get on the other side of the phone call so if it didn’t work the first time then i would try again with another customer service rep the most common service you can get an extended discount with is probably internet and cable and i’ve called my internet service to get the

Extended discount right before my trial expired i just set it on my reminder about three days before it expires and i think i did it with show time because there were some tv shows i wanted to watch so i got on a 30 day free trial and then try to cancel it after 30 days instead i got another 30 days of free trial just to keep me on as their customer tip number five

Is using uh credit cards that reward you streaming purchases like the american express blue cash preferred card that gives you six percent cash back on u.s streaming subscriptions or the american express platinum card that rewards you up to 240 a year on streaming services just make sure you’re being responsible with your credit cards and pay off your balance and

Full every month or these rewards won’t be worth it and i personally use the amex platinum card and that’s how i get got peacock for free if you take a look at the amex benefits page the 240 digital entertainment credit covers audible disney plus hulu peacock siriusxm and the new york times and here’s how it works and it’s really simple you just use this credit

Card to make the subscription purchase a few days or maybe a week later i get the statement credit up to 20 each month and so you could get disney plus for 9.99 a month and peacock for 9.99 a month for completely free so as long as your fees don’t exceed 20 a month or 240 a year and you pay your credit card balance and for each month and then you could save up

To 240 a year on subscription services and if you want to know more about how to invest for your financial independence and early retirement be sure to check out these two videos so as i said i appreciate you watching my video don’t forget to subscribe and i hope to see you in the next video have a good one you

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Top 5 Ways to Save Money on Subscriptions to Achieve Financial Independence By FIRE Psy Chat