Do These 4 Things Every Time You Sign Up for a Membership or Subscription

If you forget about an upcoming subscription payment, it could throw your budget out of sorts.

Whether you pay for software, use streaming apps, or belong to a fitness center, you've likely committed to subscription-based products and services. When you become a member of a program or club or sign up for a subscription, it's best to review the terms and consider all costs. Here's what to do the next time you sign up for a new membership or subscription.

1. Take advantage of free trials

Many companies offer free trials of their service, so interested customers can sample the service before spending money. Before paying for a service, you should ensure that you're investing in something that will fit your needs. Always check to see if a free trial is available.

2. Compare pricing options to maximize your savings

It's not uncommon for brands to offer multiple pricing options. The most convenient option for many consumers is to pay every month, but typically monthly fees are higher than other payment options. You may save more money by signing up for an alternate payment plan.

Many companies offer significant discounts to consumers who commit to yearly billing. You'll usually save money overall if you can pay this way. Review your budget before doing so to ensure you can afford the expense.

3. Choose the best payment option for you

Before signing up for a membership or subscription, it's a good idea to consider how you will pay for it. Consider which card will offer the most rewards if you plan to pay using a credit card.

Some credit cards even offer higher earning rates for specific purchases, like eligible streaming services and apps. If you pay for multiple streaming services, check out our list of the best credit cards for streaming services to learn more about the reward-earning potential of these types of cards.

4. Set reminders to avoid surprise charges

No one likes surprise charges. Seeing an unexpected charge hit your credit card can be frustrating. That can happen when life gets busy, and you're unaware that a payment is coming up. If you use subscription-based services, you'll be billed again the next time your billing date rolls around. That might be monthly, quarterly, or yearly, depending on the payment terms.

You can avoid surprise charges by planning for these costs before they pop up. When you sign up for a new subscription or membership, you may want to do one of the following:

• Mark the due date on your calendar
• Set a payment date reminder on your phone

You may want to mark your calendar or set an alert a few days before the actual due date. This way, you'll know when the payment date is approaching. When you anticipate an upcoming expense, you can budget accordingly and feel less stressed about your finances.

It pays to keep your finances top of mind

It's a good idea to consider your finances and payment habits before you commit to a new membership or subscription. You can avoid a surprise charge and find ways to save money and earn more rewards on purchases like this by taking some of the steps above. For other money management tops, check out our personal finance resources.