I'm going to tell you how to increase your net worth, almost instantly. This will work for your small business too.
Trying to make extra income on the side is harder than people make it out to be. Skipping out on your morning latte or bagel so you can save a few extra dollars every month? Just doesn’t move the needle enough for me.
The easiest way to increase your net worth is right under your nose and it will make a much bigger impact than you might realize.
Unfortunately, most people are too lazy or unaware to use this simple saving hack.
A 2022 survey by Bankrate revealed that 51% of Americans admitted to hanging on to unwanted subscriptions.
A different study by Chase Bank found that number to be even higher. Chase claims that over 71% of Americans waste more than $50 a month on unwanted or unused subscription fees.
Here are 5 ways people hang on to these subscriptions and hurt their chances of moving their Net Worth or their business forward.
#1 They use a free trial and forget to cancel
#2 People hang on to subscriptions they rarely use and fail to get proper value out of them
#3 People hang on to subscriptions they simply do not need
#4 People end up subscribing to multiple services that either do the same thing or something very similar
#5 People are afraid they are going to miss having the subscription, even if they never use it.
The Problem
$50 may not seem like much, but if you are running an online business (or even if you're not), it's more than you think. Let's look at this in terms of exit value.
Online businesses regularly sell for a multiple of 35-40x monthly net revenue (profit).
If we multiply this $50 per month of unwanted subscription fees by 40, we get $2000. Your business could be worth $2000 more just by taking the time to cancel one or two subscriptions.
If you run a bigger online business, this increase could be substantially higher.
The Solution
Luckily, here is a simple 3 step process you can use to increase your personal Net Worth and the value of your business
Step 1: Log into your checking account and print off your last month's bank statement (3-5 minutes)
Printing off a physical copy provides a necessary visual so you can start to mark some stuff out.
Deciding to print actually helped me do this and felt good.
Step 2: Go through charge by charge and put a check mark by any subscription you actually need or a purchase that was justified. Mark through any Subscription you either: Do not use regularly, Do not need, or that could be replaced by a service you already pay for. (5 – 10 minutes)
This is hard for me. Just like going through my closet and purging old polos. Why is it so hard to throw away a shirt with holes under the armpits and hasn’t been worn in 8 months.
I recently did this with Ventured. I identified 3 subscriptions I was using less than 2 times per month. I also identified one large subscription that I used regularly but did not come close to justifying the cost.
In all, I was able to increase my monthly profit by over $300.
Step 3: Immediately cancel the subscriptions you crossed out. (5 – 10 minutes)
Do not wait and do it later. Do it before you forget and you will be richer than you were before.
Do. It. Now.
Reviewing your recurring expenses every 3-6 months can go a long way in making your business more profitable and making sure you never have to stop buying your morning latte.
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