Oversubscribed
The hidden cost of the "set and forget" mindset.
We have all been there. You scan your credit card statement and spot a $15 charge for a streaming service you have not watched since that pandemic-hit show was popular. You roll your eyes, cancel it, and feel a small victory.
But what if I told you that you are likely “oversubscribed” in areas of your financial life that cost you far more than $15 a month?
We often talk about the power of automation: Whether it is paying yourself first or using the bucket system, removing willpower from the equation is usually a superpower. But every superpower has a kryptonite. For automation, it is complacency. We get so used to things running in the background that we forget to check if they are still running well.
Here are three areas where you might be oversubscribed without realizing it.
1. The Expense Subscription: It’s More Than Just Streaming
While it is easy to catch a lingering app subscription or gym membership, we often overlook the “boring” subscriptions: our contracts. Insurance is the prime example. You likely signed up for auto or home insurance years ago and have simply paid the renewal every year since.
But your life has evolved. Maybe your car is older, or you have improved your home security. Perhaps the market rates have simply become more competitive. By “subscribing” to your old policy without an annual check-up, you might be paying for coverage you do not need or a premium that is no longer competitive.
2. The Investment Subscription: The Risk of Lazy Cash
In our investments, we often “subscribe” to a specific risk profile or expected return. But markets change, and so does the efficiency of cash.
Consider your emergency fund. A few years ago, interest rates were near zero, so it did not matter much where you parked your cash. Today, high-yield savings accounts offer significantly higher rates. If your cash is still sitting in a traditional checking account, you are effectively paying a subscription fee in the form of lost interest. You are oversubscribed to convenience and undersubscribed to growth.
3. The Debt Subscription: Assuming It’s Set in Stone
Finally, there is debt. There is a strange loyalty we often feel toward our debt. We set up the auto-pay and continuously chip away at it. But banks do not reward this loyalty, they profit from it.
If your credit has improved or market rates have dropped since you took out a loan, sticking with your original terms is a voluntary tax. Whether it is refinancing a mortgage or negotiating a lower rate on a personal loan, assuming your debt terms are non-negotiable is a costly subscription to the status quo.
Canceling an unused app feels good. But cancelling a “subscription” to an overpriced insurance policy, a lazy savings account, or a high-interest loan can change your financial year. You do not need to obsess over these numbers daily. Just do not let “set and forget” turn into “ignore and neglect”.
Let’s Talk Money!
Beyond streaming services, what is one “boring” bill you have put on autopay and haven’t reviewed in over a year?
When was the last time you checked the interest rate on your savings account compared to what is currently available?