- Life
published May 2, 2019
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Did you know you can find out how much you’ve spent on Amazon… ever? Do you want to know? You should, said Certified Financial Planner Shannah Compton Game, host of the “Millennial Money” podcast.
The retail giant doesn’t exactly broadcast that you can see your lifetime tally, but you can (with some legwork and their “order history report” tool). My report going back to 2006 was a ponderous thing that actually crashed my Open Office software trying to calculate the tally. And while some of it was intentional spending (think holiday shopping or renovation sourcing) much of the outlay was never part of any budget, ranging from impulse one-click buys to movies and TV season passes to “shoppers who bought this also bought that” suggestions.
It’s just so very easy to make those purchases and wait for them to land at the door. And that’s a problem, Game said. Not just with Amazon, but with any app or website that lets us distance ourselves from the fact that we’re spending actual dollars.
Why Your “Direct Pay” Apps Are Like Financial Black Holes
“I’m seeing a lot of not calculating how much people are spending on transportation, Uber and Lyft, anything where you can direct pay through an app,” Game said. Based on her work with clients, Game said she sees purchases like subscriptions and one-click Amazon buys adding up to “a fair amount of money for most people”—all gone without much thought. “It’s the technology now that allows us to click a button and we don’t know how much we’re spending.”
Financial planners like Game are trained to spot “black holes” like this, she said. Clients may be saying “Every month I try to save and nothing happens,” but when they start looking at spending, the planner will spot those trends or areas of weaknesses that you can’t see—”and that’s just human nature,” she said. Subscriptions are a major culprit. And what can’t you subscribe to now? Plants, razors, wardrobe, dinner—even my dogs have a subscription. Not to mention the multiple streaming networks we juggle if we want to be able to watch “Game of Thrones” and “The Handmaid’s Tale” and “Stranger Things.” These obviously add up when you have enough of them.
All this easy ordering and out-of-sight spending, out-of-mind subscriptions are great for companies, Game said, “but it is really detrimental to people who are going paycheck to paycheck and don’t have a pad.”
How to Be Smarter About Subscriptions and One-Click Spending
The solution is nothing magic (or fun).
1. Detail your past spending.
When you’re making your budget, account for subscriptions and spending on sites like Amazon, Game said. She suggested detailing them like this: “Here are all my subscriptions and here is how much each of them is a month. A lot of times we have [subscriptions] that we’re not even using or remember.” Take an audit every six months: Are you still even watching that channel, or do you still need that monthly delivery of Amazon’s “subscribe and save” soap?
2. Set future goals and stick to them
It’s Gams said it’s also smart to set some spending goals. For instance, “I’ll keep my total subscription fees to no more than $25 a month and if there’s a new one I’m going to think about ‘do I really want to add that?’” If so, something else has to go.
3. And set a limit on Amazon and Uber, too.
Game sets herself a monthly threshold for Amazon spending—something which sounds way easier said than done! True, she acknowledged. “It’s really hard. It is a long developed habit. I think it’s having some connectivity that every time I’m pushing a button it is coming out of my bank account.”
To stay on track she’s had clients “keep a big post-it on the fridge and every time they make an Amazon purchase they tally it up.” That works because “visually is where the power comes in,” she said, “where you can look at it and say omg!”
But the most popular approach, she said, “is the prepaying on a credit card so you’re counting down.” That can be used for anything from Amazon to Uber. “Say ‘this is how much I can spend on transportation [or whatever] for the month and when I’m done I’m done,’” she said. “That will help you have some level of accountability. I think if it’s solely focused on cutting back on spending, things fall short.” Whereas when you know you’ve only got 50 bucks left, she said, you have to make sure you’re making purchases wisely.
Above All Else, Keep Your Larger Money Mission in Mind
The key to all of these small strategies is always keeping your financial goal in mind, whatever it is. According to Game, the aim is two-fold: You want to create a mental link between your big goals and your current small spending limits, and you can trick yourself into staying competitive and focused.
A physical reminder is perfect—like a real estate listing taped above your desk, or a mood board you will see every morning when you wake up. “The visual thing is so powerful and we underestimate it,” she said. “Having to look at something and having to make a decision, it’s that gut check moment of ‘I don’t feel good about this.’ It might not stop you but at least if it gets you to think twice, then you at least have some forethought.”
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