Should I Pay for Subscriptions Monthly or Annually?

How do I decide which option is best of my business?

With internet applications becoming entirely mainstream, how we purchase for our businesses has evolved and many aspects of our day-to-day operations now revolve around monthly or yearly subscriptions.  Everything from software to equipment to product now comes with the option to pay in real-time, or ahead of time.  Which option is best for you?

Most business owners that I know choose to pay monthly.  Why?  This way you can test a product to see if it is the right fit for your business.  It also helps with your cash flow because you can do your bookkeeping monthly and make ‘smaller’ payments.  So why move to an annual payment?

Monthly subscriptions often cost 5%-20% more and so if you choose to purchase annually, you are receiving a large discount!  The moment you know that you have purchased the right product for your business, I suggest making an immediate switch.  Take the total yearly purchase price, assign it as a monthly line item, and enjoy the savings!  If you do wish to continue with monthly payments, many vendors offer flexibility on which month your payment is made so you can continue sampling a product for a little longer.

At Grow Your Wealth Financial Management, we can help answer all your financial inquiries.  I have a system that helps you purchase wisely and efficiently.  Would you like to find out more?

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