Reviewing Your Recurring Autopay Plans is Overdue
Go On, Save Some Coin with This Subscription Audit Guide!
Let's face it, we've all got a bunch of subscriptions draining our wallet each month – fitness apps, streaming platforms, meal delivery kits, and more. On average, Americans shell out $924 annually on these bad boys, but it's time to start questioning if they're truly worth the dough. Unchecked, subscription services can quietly deplete your bank account. auto-renewal payments, known as "evergreen," automatically renew unless you choose to cancel. It's no wonder they're so tricky to keep tabs on!
And it's not just forgetting to cancel that causes the trouble. Free trial traps are all too common. Some services lure customers with the promise of free trials before auto-upgrading them to paid subscriptions. Imagine thinking you're scoring a bargain, only to find you're signing yourself up for a monthly fee.
Even if you're selective, subscription prices can sneakily increase once you're hooked. These smaller cumulative hikes add up across multiple services, taking a bite out of your budget without you even realizing it.
But fear not! Here's a simple, cost-free way to audit your subscriptions and reclaim some cash:
Steps to Conduct a Subscription Audit
1. Find Those Hidden Charges
Start by digging up all those pesky monthly and annual subscription expenses that hide in the depths of your credit card, debit card, or online banking statements. Set aside some time (around an hour) to make a comprehensive list for the past year. If you come across something funky that you can't place, it might be time to cutting it loose. Don't forget to schedule a monthly reminder to give your subscriptions the once-over.
Discerning every hidden charge requires some sleuthing:
- Delve into the last three months of credit card and bank statements
- Scour your email for subscription confirmations, receipts, and suspicious messages
- Check out the app store subscriptions on your Apple App Store, Google Play, and PayPal, Venmo, or Cash App accounts
- Poke around Amazon for any recurring orders or subscriptions
Don't forget to look out for any annual charges that missed the last statement.
2. Create Your Subscription Dashboard
Next up, create a spreadsheet to house all the details of your subscriptions:
- Name of the service
- Cost per month or year
- Billing date
- The last time you used the service
- Whether it's essential or non-essential
This visual representation helps you see exactly how much you're shelling out each month and which subscriptions deserve the axe.
3. Assess Each Subscription's Worth
For the subscriptions that manage to survive the first cut, it's time to evaluate their worth. Question each service:
- When was the last time you used it?
- Does it save you coin compared to paying by the use?
- Can you downgrade to a cheaper tier?
- Is there a free alternative that does the job just as well?
- Does the subscription truly make your life better?
Be frank about which services bring real value to your life instead of those kept out of habit or laziness.
4. Make Some Tough Decisions
For the services you decide to keep:
- Take note of renewal dates on your calendar
- Investigate discounts if they offer annual payment options
- Take a chance and negotiate better rates with customer service
For those you don't need:
- Bid them farewell immediately (no waiting for the next billing cycle)
- Snap screenshots of your cancellation confirmations
- Remove the payment details wherever possible
The Bottom Line
A little due diligence goes a long way. By giving your subscriptions a once-over, you can save yourself some serious cash. Out of curiosity, slashing $50 a month saves you $600 each year. Consider scheduling regular reviews (e.g., quarterly) and utilizing a dedicated credit card for subscriptions to keep your expenses in check. Take charge this weekend, and you'll be thanking yourself in the near future!
- In your quest to save money, start by examining the hidden fees from your subscriptions, hidden within credit card, debit card, or online banking statements, and schedule a monthly reminder to check them.
- Create a comprehensive subscription dashboard in a spreadsheet, including details like the name of the service, cost, billing date, last usage, and its importance in your life.
- Assess the worth of each subscription you've saved in the dashboard by questioning whether it truly enhances your life, saves you money, or if there is a cheaper or free alternative.
- Make decisions on the subscriptions based on their worth, either keeping them and looking for discounts or letting them go and canceling immediately, and deleting payment details where possible.
- The audit will help you save money in the long run, as canceling $50 a month in subscriptions equates to $600 annually, so consider scheduling regular reviews and utilizing a dedicated credit card for subscriptions to better keep your personal-finance budgeting under control.
