In a 2023 Forbes Advisor survey, it was found that 70% of respondents identified as living paycheck to paycheck or reported that their income does not cover their standard expenses. As a result, many are seeking ways to make passive income. One approach suggested is to focus on decreasing the amount of passive income you are giving to others, particularly through subscriptions and debt payments that benefit others. For example, interest payments on debts such as mortgages and car loans are forms of passive income for the lenders, while premium credit card perks can end up costing you more in interest payments.
To improve financial stability, the article suggests utilizing the unsubscribe button to free up cash flow by cutting unnecessary subscriptions and memberships. By writing a list of all current subscriptions, individuals can identify which ones are not essential and may be worth canceling. This could include software licenses, delivery services, memberships, and streaming services. The goal is to unsubscribe from services that are not used frequently or do not provide sufficient value for the cost. Additionally, the article suggests canceling subscriptions with declining quality or customer service.
Another recommendation is to unsubscribe from social media accounts and email subscriptions that may trigger impulse spending or feelings of inadequacy. Social media platforms like Instagram and TikTok have been found to lead to impulse purchases for many users. By muting or unfollowing accounts that promote unnecessary spending or promote unrealistic lifestyles, individuals can reduce the temptation to spend unnecessarily. This can also contribute to a sense of control over financial goals and priorities.
The author of the article shares their experience of trading streaming subscriptions for real-life experiences. By cutting back on entertainment subscriptions and dedicating those funds to a yoga membership, they found that they were able to improve their physical health and overall well-being. Rather than spending money on multiple streaming services, they focused on one specific subscription that brought them joy and added value to their life. This shift in spending habits allowed them to prioritize experiences that were more enriching and fulfilling.
In conclusion, the article emphasizes the importance of being intentional with subscriptions and expenses to improve financial well-being. By utilizing the unsubscribe button to cut back on unnecessary subscriptions and memberships, individuals can save money, time, and mental energy. This can create more room in the budget to focus on growing passive income streams and investing in experiences that bring genuine value and fulfillment. Ultimately, the key is to make conscious choices with spending and prioritize activities that align with personal goals and values.
