Rocket Money, previously known as Truebill, positions itself as the ultimate money-saving app, promising to simplify your finances, cut down on subscriptions, and provide a clear picture of your financial health. They claim to be the “money app that works for you,” but before you jump on the bandwagon, it’s crucial to understand what you’re actually paying for and if it truly delivers on its promises.
While Rocket Money boasts features designed to help you manage your bills and subscriptions, a closer look reveals that many of these services come at a cost, and the free version might leave you wanting more. Let’s dive into a detailed breakdown of Rocket Money’s pricing structure, features, and ultimately, whether investing in their services is a smart financial move.
Understanding Rocket Money’s Pricing Structure
Rocket Money operates on a freemium model, offering both a free version and a premium subscription. While the free version provides basic functionalities, access to the more touted features, such as subscription cancellation and bill negotiation, requires a premium membership. This is where understanding “How Much Does Rocket Money Cost” becomes essential.
The premium subscription employs a somewhat unconventional “pay-what-you-think-is-fair” model, ranging from $6 to $12 per month, billed annually or monthly. This sliding scale, while seemingly flexible, can be confusing. Regardless of whether you choose to pay $6 or $12 per month, you unlock the same premium features. The pricing difference is based on what users perceive as the value they receive, which adds an element of subjectivity to the cost.
It’s important to note that even with a premium subscription, some services, like bill negotiation, incur additional fees. This layered pricing model means that the actual “Rocket Money cost” can extend beyond the monthly subscription fee, depending on the services you utilize.
Rocket Money Free vs. Premium: Feature Breakdown
To truly assess the value proposition and answer “how much does Rocket Money cost” in terms of features, let’s compare what’s offered in the free and premium versions:
Rocket Money Free Version:
- Account Linking: Connect your various financial accounts to get a consolidated view of your finances.
- Balance Alerts: Receive notifications regarding your account balances.
- Subscription Management: Identify and track your recurring subscriptions in one place.
- Spending Tracking: Monitor your spending habits and categorize transactions.
Rocket Money's spending insights feature helps track expenses.
Rocket Money Premium Subscription:
- Subscription Cancellation Assistant: Rocket Money’s concierge service will attempt to cancel unwanted subscriptions on your behalf.
- Bill Negotiation: They will try to negotiate lower rates on your bills (internet, phone, etc.). Crucially, this service comes with an additional contingency fee of 35% to 60% of the first year’s savings.
- Premium Budgeting Features: Unlock custom budget categories and create unlimited budgets.
- Net Worth Tracking: Calculate and monitor your net worth over time.
- Credit Score Monitoring: Access your credit score and credit report updates.
- Financial Goals Saving: Automated savings tools to help you reach your financial goals (utilizing a Rocket Money savings account).
- Shared Accounts: Collaborate on finances with a partner or family member.
- Chat Support: Access customer support via chat.
As you can see, the free version offers a basic overview of your finances, but the features that Rocket Money heavily promotes – subscription cancellation and bill negotiation – are locked behind the premium paywall and come with extra costs. Therefore, when considering “how much does Rocket Money cost,” you must factor in not just the subscription fee, but also potential contingency fees for bill negotiation and whether the free features are sufficient for your needs.
Deeper Look into Premium Features and Their Costs
Let’s examine the premium features more closely to determine if they justify the Rocket Money cost:
Subscription Cancellation Assistant: Convenience at a Price
The subscription cancellation service is a major selling point for Rocket Money. The idea of having a “concierge” handle the often-tedious process of canceling subscriptions is appealing. However, this convenience comes at the cost of a premium subscription, and it’s worth questioning if it’s truly necessary.
Many subscriptions can be easily canceled yourself online or with a quick phone call. Rocket Money primarily targets subscriptions that are straightforward to cancel, which are often the ones you could manage independently without paying for a service. For subscriptions that are more difficult to terminate (think gym memberships with binding contracts), Rocket Money’s success rate might be limited.
Bill Negotiation: Savings, But at What Cost?
Rocket Money’s bill negotiation service also sounds enticing – who wouldn’t want to save money on bills? However, the hefty contingency fee of 35% to 60% of your first year’s savings significantly reduces the actual benefit to you.
For instance, if Rocket Money negotiates your phone bill and saves you $200 annually, you could end up paying them between $70 and $120. This drastically cuts into your savings, and you might find that negotiating bills yourself, while requiring some effort, allows you to keep 100% of the savings. Furthermore, some negotiated savings might only apply to introductory periods, potentially leading to bill increases later.
Premium Budgeting and Other Features: Are They Essential?
The premium version unlocks custom budgeting categories, net worth tracking, and credit score monitoring. While these are useful tools, many free or cheaper budgeting apps offer similar functionalities. Features like credit score monitoring are also readily available for free through various other platforms. Therefore, the additional value of these premium features within Rocket Money’s ecosystem should be weighed against the overall “Rocket Money cost” and the availability of comparable features elsewhere.
Is Rocket Money Worth the Cost?
Determining if Rocket Money is “worth it” depends heavily on your individual financial needs and habits.
Rocket Money Might Be Worth Considering If:
- Subscription Overload: You have numerous subscriptions and genuinely struggle to manage and cancel unwanted ones. You value the convenience of a concierge service and are willing to pay for it.
- Limited Time: You have very little time to dedicate to personal finance management and prefer a hands-off approach. You are comfortable paying for convenience and automation.
However, Rocket Money Might Not Be Worth It If:
- Budget-Conscious: You are actively trying to save money and are wary of subscription fees and contingency charges that eat into potential savings.
- Hands-On Approach: You prefer to be actively involved in managing your finances and are comfortable handling tasks like subscription cancellations and bill negotiations yourself.
- Looking for Comprehensive Budgeting: You need a robust budgeting app with extensive customization options and are not solely focused on subscription and bill management. Free budgeting apps like EveryDollar offer powerful budgeting tools without subscription fees.
Rocket Money Alternatives: Exploring Cost-Effective Options
Before deciding if Rocket Money’s cost aligns with its value, consider exploring alternatives that might offer better value for your money, or even be free:
- EveryDollar: A free budgeting app focused on zero-based budgeting, empowering you to control your spending and saving. Offers a premium version with bank connectivity, but the free version is highly functional.
- Mint: A free budgeting app providing spending tracking, bill reminders, and credit score monitoring.
- Personal Capital: A free financial dashboard offering net worth tracking, investment analysis, and budgeting tools (primarily focused on investment management).
These alternatives provide robust budgeting and financial tracking features, often without the subscription fees associated with Rocket Money’s premium services. For subscription management, simply setting calendar reminders and taking a few minutes each month to review your recurring charges can be a free and effective alternative to paying for Rocket Money’s concierge service. Similarly, negotiating bills yourself, though requiring some time, can save you significant money compared to paying Rocket Money’s contingency fees.
Conclusion: Evaluate Rocket Money Cost Against Your Needs
Ultimately, understanding “how much does Rocket Money cost” goes beyond just the monthly subscription fee. It involves considering the additional costs for services like bill negotiation, evaluating the value of premium features against free alternatives, and assessing whether the convenience offered justifies the price.
While Rocket Money offers a user-friendly interface and some helpful features, its pricing structure and the availability of free or cheaper alternatives warrant careful consideration. For many, actively managing their finances using a robust free budgeting app and taking a DIY approach to subscription cancellations and bill negotiations might prove to be a more cost-effective and empowering path to financial well-being.
Before subscribing to Rocket Money Premium, thoroughly assess your needs, compare its features and costs to alternatives, and determine if its value proposition truly aligns with your financial goals and preferences. Remember, taking control of your finances doesn’t always require paying a premium; sometimes, the best financial tools are the ones that empower you to manage your money effectively and affordably.
