Is it worth paying for premium subscription services?

Question

Rich Dad · Accepted Answer

“If it doesn’t either make you money or buy back your time, it’s probably just expensive entertainment.”
Let’s get one thing straight: premium subscriptions are not about the $9.99. They’re about what they produce. If a $20/month subscription helps you earn an extra $200, it’s an asset. If it just helps you binge another show, it’s a liability dressed in a sleek interface.
Take ChatGPT Plus, LinkedIn Premium, or a premium investing platform. If you’re using them to write proposals faster, close freelance deals, or analyze stocks better — that’s leverage. Suppose LinkedIn Premium at $40/month helps you land a job that pays $10,000 more per year. That’s a 250x return. Now we’re talking. Same with Spotify or YouTube Premium — if no ads save you 30 minutes a day and you reinvest that time into building a side hustle earning $30/hour, that’s roughly $450/month in productive value. Suddenly $15 looks like pocket change.
But here’s the trap: most people stack subscriptions like trophies. Netflix ($15), Spotify ($11), Disney+ ($14), Amazon Prime ($15), fitness app ($20), cloud storage ($10)… that’s $85/month — over $1,000 a year. Invest that $1,000 annually at 8% for 20 years and you’ve got roughly $49,000. That’s a down payment. So ask yourself: are these subscriptions feeding your future or numbing your evenings?
Now, I’m not anti-enjoyment. I’m anti-mindless consumption. A gym membership that makes you healthier increases your earning capacity. A premium coding course that helps you pivot into tech? That could raise your income by 30–50%. But three streaming platforms because you “might watch something”? That’s mental junk food.
Here’s my rule: every subscription must pass one of two tests. 1) Does it make me money? 2) Does it significantly improve my quality of life relative to its cost? If it fails both, it’s gone. Review quarterly. Ruthlessly.
The wealthy don’t obsess over small expenses — they optimize them. If you earn $100,000 a year and subscriptions cost $1,200 annually but generate better health, learning, or productivity, fine. But if you earn $40,000 and subscriptions cost $1,500? That’s almost 4% of your income disappearing silently.
Subscriptions are tools. A hammer can build a house or sit in a drawer. The problem isn’t premium — it’s passive behavior.
If it multiplies your money or momentum, buy it. If it just fills silence, cancel it.

Poor Dad · Answer

“Be careful — small monthly expenses have a sneaky way of becoming big annual regrets.”
Premium subscriptions seem harmless because they’re framed as “just $10 a month.” But personal finance isn’t monthly — it’s cumulative. Ten dollars here, fifteen there, and suddenly you’re spending $100 per month without thinking. That’s $1,200 per year. Over 10 years, without even accounting for inflation, that’s $12,000. Invested conservatively at 6%, it could grow to around $16,000. That’s a car. Or a significant emergency fund.
You must ask: are these services essential? For example, Microsoft Office for work might be necessary. Cloud storage for important documents may provide security and peace of mind. But do you truly need four streaming services at once? Most people realistically use one or two. Rotating subscriptions — one at a time — can cut costs by 50% without sacrificing enjoyment.
There’s also the behavioral risk. Subscriptions normalize automatic spending. When expenses are automated, you stop evaluating them. A survey in the U.S. found that the average person underestimates their subscription spending by over 100%. That means if they think they’re spending $50 monthly, it may actually be closer to $100. This is why budgeting apps often reveal surprising numbers.
I’m not against reasonable comfort. If Spotify at $11 per month genuinely improves your commute and mental well-being, that’s not irresponsible. But if you’re carrying credit card debt at 18% interest, paying for premium entertainment is financially unsound. Debt repayment should always come first. Likewise, if you haven’t built at least 3–6 months of emergency savings, discretionary subscriptions should be minimized.
Consider opportunity cost carefully. A 25-year-old investing $100 per month instead of spending it on subscriptions could accumulate roughly $150,000 by age 60 at a 7% return. That’s meaningful retirement security. Small consistent investments matter far more than small conveniences.
My advice is simple: audit every subscription twice a year. Cancel what you haven’t used in 30 days. Keep what you truly value. Financial stability comes from disciplined, intentional spending — not impulse upgrades.
Comfort is fine — but security lasts longer than convenience.

Is it worth paying for premium subscription services?

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