How Aussies can easily save $2,600 per year

Direct debit is both a blessing and a curse. On one hand, it makes bill maintenance easy. Gone are the Sunday afternoons spent writing cheques to cover the month’s expenses.

On the other hand though, running a number of subscriptions and memberships simultaneously can have a sinister impact on your savings.

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Internet subscriptions make it easy to mindlessly sign up to services you may rarely use. That’s not to say all subscriptions fall into that category. They can be a wonderful add-on if you’re getting your money’s worth.

However, if you’re not, it could be worth reviewing. A quick analysis shows just five memberships could be costing you more than $100 a week – or more than $2600 a year.

Here’s are a few subscriptions that savers say have set back their financial goals.

1. Music streaming

Music streaming is a great way to listen to your favourite songs on demand, but it comes at a cost. To make it worthwhile, you want to be listening frequently to a variety of music from different artists.

Estimated cost: $144.

The savers alternative: One off song purchases, if made infrequently, could give you more bang for your buck. If you have a penchant for a particular artist could always go back to the trusty CD too, which now often retail for less than $10.

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2. Gym membership

Gym membership doesn’t fall squarely into the subscription category, but we are counting it because it’s a regular direct debit. I once had a gym membership that cost close to $100 a month, which was used about twice a month. If unused, it’s an enormous drain on your budget.

Estimated cost: $1248

The savers alternative: Get outdoors. Many of the exercises you do in a gym can be replicated outside.

3. Premium/cable television service

There are certain programs that simply are not available on free-to-air TV. Enter the lure of cable TV services. Again though, it’s a large cost if not used enough to justify the expense.

Estimated cost: $612

The savers alternative: Stick to free-to-air and invest in periodical movies.

 4. Wine club

Wine of the month is an inspired idea for vino lovers who want to broaden their palate, but it doesn’t come cheap. Over a year, wine drinkers could end up spending hundreds of dollars on wine they may not enjoy (or may not even drink).

Estimated cost: $480

The savers alternative: Buy wine as you go.

5. Book of the month service

Time poor bibliophiles now have the option to hear books read to them on their daily walk through the emergence of well-stocked audiobook services. But those who don’t have enough time to get through a monthly book could be better off buying second hand paperbacks.

Estimated cost: $180

The savers alternative: Buy books or audiobooks as you go to ensure you have time to make the most of them.

How we did our calculations*

Subscription/membership	Yearly cost	Cumulative total
Music streaming service	$144	144
Gym membership	$1248	1392
Premium television subscription service	$612	2004
Wine club	$480	2484

Book of the month service              180                                           $2664.

 *Estimates based on advertised, average costs of popular products rounded to nearest dollar. Figures may vary depending on deals and subscription levels. This article is general in nature and should not be substituted for tailored financial advice.