BUDGETING AND SAVING
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Before you go
A lot of things can keep us up at night, like the monster under the bed and whatever made that noise just now. But nothing gives us the creeps like financial ghosts—those hidden, often unnecessary, expenses that suck the life from our finances.
These haunted creatures trick us into signing up for free trials and subscriptions that quietly drain our bank accounts. That, in turn, reduces our spending power and keeps us from reaching our goals. These not-so-friendly ghosts show up in many forms, too. Here are a few examples:
- Gym memberships
- Subscriptions for apps, music, entertainment, and games
- Warehouse club and online shopping membership (think Costco, Sam’s Club, Amazon Prime)
- Meal kit and clothing subscriptions
- Premium delivery service subscriptions, like GrubHub+ and Uber One
- Magazines, news services, ad-free podcasts, and that Substack blog you read once
- Long-forgotten free trials
- Transportation passes for a city you no longer live in
Taken one at a time, these expenses aren’t so scary. In fact, you might not even notice the monthly charges for a few dollars here and there. But when you add everything up, you could be spending $1,000 or more every year on things you don’t use.
There’s something strange in your bank account. Who you gonna call?
Now, we’re not saying don’t get a gym membership or download a fun new app. But if you’re paying to go to a gym, you should do exactly that—regularly—to make it worth the expense. And you should be aware that, say, a game subscription for $6.99 a month adds up to $83.88 a year. Is it a ton of money? No, but it’s a total waste if you don’t play the games. To prevent ghosts from haunting your financial health, you need to know how much you’re paying for subscriptions and whether you’re getting your money’s worth.
Let’s go on a ghost hunt
You don’t need to wait for Halloween to get started. Look through your monthly bank and credit card statements to see where your money’s going. You can check your Flagstar accounts anytime online or with Flagstar Mobile Banking. Anything you don’t recognize is a money ghost. If you come across recurring payments for services you don’t use, consider canceling them. Keep hunting for money ghosts every month so they won’t catch you by surprise.
Now it’s time for financial ghostbusting
- Cancel subscription services you don’t use
Do you need to pay for three music apps and 12 streaming channels? If you use all of them and they all fit into your budget, that’s great. If not, cancel whatever you don’t use. But what if you watch one or two shows on each service? Consider rotating them instead. For example, you could subscribe to Hulu and Max for three months, then switch to Netflix and Disney+, then Apple TV+ and Peacock, and so on. Another option is to temporarily cancel these services over the summer or during the busy season at work. Then, when you have time, you can catch up on Abbott Elementary episodes. - Explore your options for downgrading
When you call to cancel a service, some companies will offer a discounted rate to keep you as a customer. It won’t always work, but it’s worth a phone call to find out. You can also try price shopping to see if other providers offer a better rate or decide you can listen to a few ads between songs. - Shop smaller and local
We get it. Warehouse clubs like Costco, BJ’s, and Sam’s Club have amazing deals. And Amazon Prime delivers almost anything you can think of in just a few hours or days. But think about it this way: Are you sure you want to pay for an incentive to spend more? Consider letting your membership expire and see how essential it is. You might find that you can get by with the prices and selections at smaller stores. - Pick up instead of paying for delivery
On the same note, home cooking is almost always cheaper than takeout. But if you must order out, skip the delivery fee (which is often in addition to the driver tip) and pick up your food in person. - Start going to the gym—or opt for gym-less workouts
Commercial gyms get you in at discounted prices in January, knowing new members often lose steam by February. Don’t be a failed resolutioner. Either start going or cancel your membership. Some chains make you jump through hoops to terminate your contract—review the terms and be persistent. We do advocate staying in shape, however. There are plenty of body weight exercise programs online to help you get fit without any equipment.
