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In the digital age, convenience often comes with a price. Like automatic recurring charges. It’s great not having to keep track of monthly bills once you connect a business with your credit card or bank account, but some of us may be paying for subscriptions or memberships that we haven’t used in weeks, months or even years. It might be a meditation app, a membership for discounted car rides, or the five streaming services that offered you a free trial during the pandemic. In fact, Americans estimate that on average, over $200 — 18% of the $1,080 that they spend on subscriptions each year — goes to ones they don’t use, according to a recent CNET survey. Among younger adults belonging to Gen Z, that figure is even higher — $276. So what? It’s easy to sign up for things and even easier to forget about them. But now’s the time to trim any fat from your budget. Sixty-one percent of people who have subscriptions told CNET they’re rethinking them because of concerns about the economy, and 26% said they’d already canceled at least one. Even if eliminating one or two doesn’t make a big dent in your expenses, every little bit counts. And paying attention to your spending is a good habit to build. If you’re dropping cash on subscriptions you don’t need or didn’t realize you still had, ask yourself:• What is my total cost? Your mind may immediately go to video streaming, but are you also paying for music, Amazon Prime, meal delivery, security apps, gym memberships, or newsletters? A free budgeting app such as SoFi’s Relay can track all your recurring expenses each month, including subscriptions, memberships and any other regularly scheduled bills. You can also create a custom tag to put specific vendors in categories you choose.
• Which ones do I really want? Weed out wasteful spending by determining which ones are truly valuable or bring you joy. In a consumer survey KPMG conducted in April, the most appealing aspects of a paid subscription were discounts, free shipping, and a rewards program.
• Could I get it for less? Could you put up with watching a few ads to save money, for example? Seventy percent of KPMG respondents said they already use or would use ad-supported streaming services instead of ad-free ones. That’s a smart way to save without sacrificing what you love.
Related Reading
• Trying to Ditch a Subscription? Sorry, FTC Just Punted 'Click to Cancel' Enforcement (PCMag)
• I Asked a Budgeting Pro to Audit My Subscriptions — Here’s What They Said to Cancel (Apartment Therapy)
• Is a Recession on the Way or Not? Does It Even Matter? (SoFi)
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