Key takeaways
- It’s great to have access to subscription services like Netflix, Uber, and all the others, that make life so much more convenient and easy.
- It’s important to do the math involved when you consider using a service because costs can add up unexpectedly and set your budget way off kilter.
- Think about the benefits and drawbacks of each subscription or service in addition to how the costs will impact your finances. Then use only the ones that truly fit your needs.
A long time ago, when I was getting out of the military and heading to a job interview, I got a limo to pick me up at the airport. Man, that was the coolest thing — getting dropped off by that limo. Later, as my family and I started going on more trips, we always got a limo to take us there and pick us up. It was a little more expensive than renting a car, but I had gotten used to it and, besides, it was fun.
I share that story with you because I’ve noticed that we’re currently living in an increasingly rent-oriented society. We hardly think twice about renting Netflix, Rent the Runway, Feather, Uber, leasing automobiles, and the list goes on. Nowadays, you can essentially rent almost anything you want. The question then is: Does it makes more financial sense to rent or to own?
Of course, the best answer would require an individual discussion, since we all have unique situations and needs that influence the decision. I’m going to talk about renting a wardrobe to make my point. From what I’ve seen, it costs about $120 per month. For that money, you could probably get away with buying 12 decent outfits. They won’t be that great when you consider the cost of the subscription agreement over a year, versus having three or four really nice outfits — brand name clothes.
So, you need to consider the math involved because you can get carried away and, if you do too much in any area, it can hurt you. For instance, when you think about using Uber or Lyft to get to and from your daily job, it may work or it may not. It may work out better financially to buy an auto, versus leasing one or using a service like Uber or Lyft every day. If you don’t do the math when considering whether to rent or own, finances can quickly spin out of control. The key is to use the services that work really well for your individual situation: the ones that make sense, that keep costs down.
Avoid subscribing to or habitually using every one of these services just because it’s convenient and easy because you’ll end up truly whacking out your budget. You can end up spending way more than you have to, incurring a lot of unplanned debt, and essentially going the wrong way. It’s nice to have access to all that’s offered out there and many of the services and subscriptions are great. The smartest way to approach them is to make sure you know exactly what each service will end up costing you and only use the ones that really work for you and your individual needs. Until next time, enjoy.
Gary