The start of a new year is when many people assess their finances and review their expenses. In the coming weeks, you may decide to dump some of the expenses on your list that don't add much value to your life. But you might also decide to sign up for new services you feel can enhance your life, like Amazon Prime.
Amazon Prime costs $14.99 a month, but if you pay for a year at a time, it's only $139. Your Prime membership gives you access to benefits that include:
- Free two-day shipping on orders of any size
- The option to try on clothing and footwear before committing to a purchase
- Free books, music, and streaming content (though you'll soon need to pay an additional fee if you want that content to be ad free)
You may be tempted to get a Prime membership this year. But here are three reasons not to.
1. You're already trying to pay off debt
Maybe you racked up a lot of credit card debt over the holidays. Or maybe you're carrying debt because you had to charge a big car repair on your credit card last summer.
Either way, if you're trying your hardest to chip away at an existing balance, then any new expense you take on is money you can't use to get rid of your debt. So if you've managed without Amazon Prime in the past, chances are, you can do so for another year, and instead use your money to knock out your credit card balance.
Also, with a Prime membership, you may be tempted to buy more things because you don't have to meet a shipping minimum. And you don't want the temptation to spend money when you're trying to get out of debt once and for all.
2. You tend to shop online when you're bored
Maybe you don't have high-cost debt to worry about and you can easily afford the cost of an Amazon Prime membership. Even so, if you're someone who tends to shop out of boredom, then a Prime membership could be a dangerous thing.
Perhaps a big reason you've managed to steer clear of debt thus far is that you haven't had a service like Prime to open the door to added spending. If you want to stay debt free, you may want to stay away from Amazon Prime.
3. You have easy access to many stores and don't need the free shipping
Amazon Prime can be a great investment for people who live in rural areas. The savings you reap by not having to drive long distances to stores can easily offset the cost of a Prime membership, if not exceed it. Similarly, if you don't have a car, then a Prime membership could be a lifesaver.
But if you have a vehicle and live near many large stores that are easy to access and park at, then you may not end up getting much use out of a Prime membership. And why spend that money when you could save it or use it for an important goal?
Amazon Prime is a worthwhile expense for a lot of people. But if these situations apply to you, you may not want to sign up for it in 2024.
)
