Taking Control of Your Finances: A Closer Look at Automated Payments
As I sat down to review my monthly credit card statement, I realized I had no idea how much I was spending on automated payments. The total was a staggering $108.02 CAD ($81.12 USD) per month, which translates to $1296.24 ($973.48 USD) annually. What’s more, most of these payments were in USD, which meant they fluctuated every month due to the exchange rate. I decided to take a closer look at each payment to see where my money was going.
Subscription Services: Worth It or Not?
One of the first payments I examined was my Skillshare subscription, which cost $12.48 CAD ($9.37 USD) per month. While I had initially found it to be a great resource for learning new skills, I hadn’t used it in months. Verdict: cancelled.
Next up was my Rdio subscription, which cost $11.29 CAD ($8.48 USD) per month. I loved having access to music while working, but after researching, I discovered a cheaper option. By switching to a family plan with my boyfriend, we could save $2.50 USD per month each. Plus, with the Canadian dollar struggling, we saved an additional $3.30 CAD per month.
The Hidden Costs of Credit Monitoring
I also had a payment of $16.95 CAD ($12.73 USD) per month to Equifax, one of Canada’s credit monitoring bureaus. I had signed up to get my credit score, but then forgot to cancel the subscription. After finally calling to cancel, I realized I had wasted $33.90 CAD. Verdict: cancelled.
Pet Insurance: Necessary or Not?
Another significant payment was $63.53 CAD ($47.71 USD) per month for pet insurance. While it seemed like a responsible decision, I realized that saving for pet emergencies was a more cost-effective option. Verdict: cancelled.
Cloud Storage: A Necessary Evil?
I also had payments for iCloud and Google Drive storage. The iCloud payment was $1.12 CAD ($0.84 USD) per month, which was necessary to store my phone’s photos. Verdict: keep.
The Google Drive payment was $2.65 CAD ($1.99 USD) per month, which was necessary to free up storage on my laptop. Verdict: keep.
The Results of My Purge
After reviewing my automated payments, I was able to save $72.31 USD per month, which translates to $867.72 or $1155.41 CAD annually. This amount covers nearly all of my savings goal for topping up my emergency fund. By taking control of my finances and examining my automated payments, I was able to make significant changes that will have a lasting impact on my financial health.
Take Control of Your Finances
Have you ever taken a close look at the payments that come out of your account every month? It’s time to take control of your finances and see where your money is going. You might be surprised at how much you can save by reviewing your automated payments.
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