Photo: lelemezzadri via 123RF
Software as a service (SaaS) is everywhere these days. These cloud-based systems, from streaming apps to office tools, are designed to make life easier and more fulfilling. But is “subscribing to save” or foregoing cable for streaming a sound decision for your wallet?
We’re exploring the most popular subscription options and their impact on your budget. Find out how to keep your subscriptions under control and stay focused on your long-term financial goals.
What Is SaaS?
Software as a service (SaaS) are applications hosted on a cloud server and accessed through the internet. A common feature is that they are subscription-based, meaning users pay a recurring monthly or annual fee. One of the benefits of these services is that you can access them on various devices, such as your phone, computer, tablet, and TV. Most also provide integrations with other services along with automatic updates and security.
Most Popular SaaS Uses
SaaS applications are now part of our daily lives, including work, entertainment, and communication. Here are some of the most popular services:
Email Services
You likely experienced SaaS service first with an email provider. These services, like Gmail or Yahoo, are one of the most common uses. Although most are free, you may pay a subscription for upgraded features or business accounts.
Entertainment
Streaming apps for shows and movies like Netflix, Hulu, and Apple TV are another popular SaaS you may subscribe to monthly. Other entertainment apps include ones for audio or downloaded books, like Audible and Kindle, and ones for music, like Spotify.
Software and Storage
Some of you may remember the days when you uploaded software onto your computer with a disc. Today, many companies host their software, like Microsoft’s Office Suite, on the cloud and offer subscriptions. This saves you from spending money on expensive software that needs to be updated every few years. Services like Google’s Suite are free but have fees for additional storage or specific programs.
Life Hack Apps
Have you noticed that there are apps and monthly subscriptions for just about everything? Want to lose weight, practice daily meditation, train for a marathon, or keep track of your spending? There are services for each of these and many others.
Small Business and Work
Small business owners and employees can easily experience app overload. There are apps for:
- Project management, like Asana or Notion
- Communication, like Slack
- Invoicing, payroll, and inventory, like QuickBooks
- Website hosting and design platforms, like Wix or Squarespace
- Customer relationship management, like Salesforce or HubSpot
- Email marketing, like Mailchimp or Convert Kit
- Graphic design, like Canva or Adobe
- Writing tools, like Grammarly and AI
Photo: iamnoonmai via 123RF
Budget Impacts
A recent survey found that consumers spend an average of $1,000 a year on various subscriptions. Each $10 or $20 monthly service doesn’t feel like a lot when you sign up. But all together, the costs add up. They also may not be helping you reach your long-term financial goals. This is especially true for unused apps or surprise expenses. A CNET survey found that “48% of respondents who said they had signed up for a free trial of a paid subscription and then forgot to cancel it.”
Take Control
Rather than ignore those monthly fees or keep signing up mindlessly for new SaaS apps, here are some steps to take control.
1) Review Your Goals
Start with reviewing your financial goals and priorities. If your goal is to pay off debt, cutting costs may mean saying goodbye to some of these monthly services. If your priority is focusing on your health, consider canceling some of your streaming apps and replacing them with fitness or nutrition ones.
2) Keep Track of Your Services
Take stock of all your current services by creating a spreadsheet with costs, renewal dates, and end dates for free trials. You may be surprised to see how much you are spending each month. This is also a good time to set up calendar alerts to cancel free trials before they start charging.
3) Assess
Now that you have reviewed your goals and have a list of all your current services, it is time to assess which ones to keep and which to cancel. Look at each one and consider whether it fits with your long-term financial goals and priorities. Could the money you are spending be better used to pay off debt or save for a big goal like buying a house? Setting a budget for your subscriptions and prioritizing which ones you want to keep may be helpful.
4) Make Changes
There are several ways to save money to stay within your new subscription budget. These include:
- Canceling unused accounts. Consider using programs like Rocket Money that cancel unused subscriptions for you.
- Switching to lower fee options like streaming apps with ads
- Rotating apps like streaming services
- Smartly using free trials and sign-up deals by remembering to cancel on time
- Switching to annual payments that often save money
Don’t let unruly subscriptions derail you from your financial goals. Taking the steps outlined above, you can enjoy the benefits of SaaS subscriptions without going overboard on your finances.
Sponsored by JPMorgan Chase
Learn more about JPMorgan Chase
The post From Streaming to Software: A Guide to Managing Your Subscription Spending appeared first on AFRO American Newspapers.
