The Simple Dollar recently recommended looking at club membership and gym fees as a way to save money. Their point was this: if you don't use something, you can save money by canceling it.
Obviously if you're not using something, you should cancel it. Why pay for something you don't use?
But I see a lot of "cancel your gym membership" recommendations listed as ways to save money. Most of the articles suggesting this say that it's cheaper to pay on a per use basis rather than have a membership if you use something sparingly.
This, of course, is true. But what often gets lost in the recommendation is this: if you use it, having a gym membership is a good deal -- and can save you a boatload of money!
I belong to a pool and swim several times a week. The per use cost (since I am a resident) is $2.50. The annual membership is $125 (I know, it's a steal -- but we paid for it in higher taxes since it's at the local high school). Because I am totally anally retentive, I tracked the number of visits I had to the pool the past 12 months. The number: 206.
If I had paid on a per use basis, these trips would have cost me $515. But instead I paid an annual fee and ended up saving myself $390. Pretty good deal, huh?
The Simple Dollar also suggests that your cost per hour for a membership should be $1 or less. (BTW, this number seems to be a bit arbitrary and I am not endorsing it, just highlighting what they say.) I am at the pool about an hour each time I visit, making my cost per hour $0.61. Again, not bad.
My point is that memberships are not all bad. If you actually use a membership, it can save you a great deal over a per use payment structure.
Do you have a membership that saves you money? What is it?
Obviously if you're not using something, you should cancel it. Why pay for something you don't use?
But I see a lot of "cancel your gym membership" recommendations listed as ways to save money. Most of the articles suggesting this say that it's cheaper to pay on a per use basis rather than have a membership if you use something sparingly.
This, of course, is true. But what often gets lost in the recommendation is this: if you use it, having a gym membership is a good deal -- and can save you a boatload of money!
I belong to a pool and swim several times a week. The per use cost (since I am a resident) is $2.50. The annual membership is $125 (I know, it's a steal -- but we paid for it in higher taxes since it's at the local high school). Because I am totally anally retentive, I tracked the number of visits I had to the pool the past 12 months. The number: 206.
If I had paid on a per use basis, these trips would have cost me $515. But instead I paid an annual fee and ended up saving myself $390. Pretty good deal, huh?
The Simple Dollar also suggests that your cost per hour for a membership should be $1 or less. (BTW, this number seems to be a bit arbitrary and I am not endorsing it, just highlighting what they say.) I am at the pool about an hour each time I visit, making my cost per hour $0.61. Again, not bad.
My point is that memberships are not all bad. If you actually use a membership, it can save you a great deal over a per use payment structure.
Do you have a membership that saves you money? What is it?
Totally. We had a baby last June. He's no2 five months old and we've probably been to the gym 3 times!
We were going to cut it out, but then decided to let November be a trial month. If we feel like we're going to really use it we'll keep, otherwise it's going bye-bye. Haha.
Fortunately we're no longer in a contract. We pay month to month. But your pool thing sounds like the best deal of all!!
Posted by: Nate Fancher | November 20, 2012 at 07:08 AM
Sam's Club. Fuel is considerably less expensive, that alone quickly covers the cost of annual dues, along with the lower cost of merchandise within the store. Savings may not be cost effective for singles but it is for a family.
Posted by: Lurker Carl | November 20, 2012 at 08:09 AM
Carl --
You'll love this post from the past:
http://www.freemoneyfinance.com/2008/10/can-you-pay-for.html
:)
Posted by: FMF | November 20, 2012 at 08:12 AM
Since our second kid was born 2 years ago, gym membership has been a total loss for us, I don't even want to run the per use numbers, it's depressing.
The problem with cancelling was twofold - they have a nice kids program and our older one goes to swimming class, gym camp in summer, etc. Also, we kept hoping that we'll force ourselves to go when paying for it (yes, I know, wishful thinking).
We are still not ready to pull the plug, but we just went to minimal payment of $16 per month which would allow us to pay separate just for the kids activities.
Posted by: Ivy | November 20, 2012 at 10:25 AM
We have a membership for the YMCA and since having kids we don't use it as much. But, they have a lot of good programs for the kids that we use and we get a pretty decent cut being that we're members. So, in the long run it does save us money.
Posted by: John S @ Frugal Rules | November 20, 2012 at 12:10 PM
My annual membership fee pays for itself within a few months. We drive about 60K miles per year and use club stations around every 3 out of 4 fill-ups. The 'favorite' club stations are currently 15 cents per gallon cheaper than surrounding fuel retailers.
After Sandy, the savings jumped to almost 50 cents per gallon as Sam's did not participate in price gouging. Happy customer!
Posted by: Lurker Carl | November 20, 2012 at 01:16 PM
I used to take fitness classes through my town rec department, but I switched to a YMCA membership a few months ago. This saves me $473 each year. Plus I can get reimbursed $150/year from my health insurance. So really I'm saving $623/year. I'm also really excited to use the outdoor pool when it's warm!
Posted by: DM | November 20, 2012 at 04:39 PM
I’m a full member of a fitness club that has 400 locations around the country, primarily on the west coast, and I’m in a deal where I pay $26 per YEAR. I wouldn't ever give this up. Even if I moved to a part of the country that didn't have a club, I’d still keep it on the chance I move back to an area with a club.
Posted by: Scott | November 20, 2012 at 10:40 PM
My gym membership is one area where I'm (knowingly) not as shrewd about the numbers as I am in other areas. Every time I cancel my membership -- rationalizing that I can do much the same thing for in the tiny workout room in my building and with a DVD at home -- I find I work out far less and dread it more. I try to use coupons and get the best deal possible but in this strangely overpriced city (Miami) I pay minimum $4+ per visit once gas and parking are included. [Note: It was cheaper for me to work out when I lived in Manhattan]. I don't like it but I choose to suck up the cost the area I live in seems to demand, knowing that the gym environment contributes to a more consistent exercise pattern and that's worth it to me.
Posted by: McKenna | November 21, 2012 at 09:17 AM
This option may not be for everyone, but if you are a regular worker-outer, consider becoming a group exercise instructor or personal trainer. Usually, these positions come with a free staff membership. I recently became certified to teach an indoor cycling class. I teach two one-hour classes a week, and because I teach twice a week, my gym pays for my membership and my husband who does not teach. Granted, there was an initial investment of around $400.00 for the training and microphone. But we’re now saving $65.00 a month! Pays for itself in 6 months and saves us money in the long-run. Best part about all of this is, these are classes I would attend anyway; only now I’m teaching and helping people get fit while improving my own fitness.
Posted by: Sophie | November 21, 2012 at 09:31 AM
I pay $49/year at a national gym (24-hour Fitness), which has dozens of gyms in my area. There was a while that I was going as much as 4x a week, which comes to $.25 per visit, though now I probably average about 10x a month. Of course I signed up with a three-year $700 plan, which makes them lots of money off the people who go three times for their new years resolution and then give up, but I will keep my $49 rate for life.
As far as being cost effective, I have improved my eating, sleeping, gym, and partying habits significantly over the past few years, and my health has improved dramatically. I'm sure I save well over $49/year in health care costs, and I'm a much happier person :-) I don't care how much money there is in the world, there is NOTHING more important than good health.
Posted by: SteveD | November 21, 2012 at 05:52 PM
Before I apply for a membership, I first think ahead if I have time to make the full use of it. When I realize that I have less time to participate, then I decide pay per day visit.
Posted by: Paul | November 28, 2012 at 01:01 AM
I work out at home. It's much cheaper and more convenient - especially in winter. Free weights, a bench, a bar for chin-ups in a doorway. Works great for me.
Posted by: David Leonhardt | November 29, 2012 at 11:36 PM