How to Cut Back on Subscriptions and Save Money

Let's be honest. How many subscriptions do you have? Streaming services, fitness apps, online courses, meal kits… the list can quickly add up and eat into your budget. It's surprisingly common for people to have subscriptions they barely use or don’t even realize they're paying for. January 25th, 2021, is a great time to take a serious look at your recurring expenses and start taking control.

This guide will walk you through a systematic approach to cutting back on subscriptions and starting to save money.

1. Track Your Subscriptions – The First Step to Awareness

Before you can cut anything, you need to know exactly what you’re paying for. This is often the most eye-opening step.

Gather All Your Bills: Collect statements from your bank and credit card accounts.
List Every Recurring Payment: Don't just look at your bank statement; dig deeper. Many subscriptions are billed directly to your credit card.
Create a Spreadsheet: Use a simple spreadsheet (Google Sheets, Excel) to list each subscription:
- Name of Subscription
- Monthly/Annual Cost
- Date Started
- Website Link
- Usage Frequency (How often do you actually use it?)

2. Evaluate Each Subscription – Ask Yourself These Questions

Now that you’ve listed everything, it’s time to assess each one. Don't just blindly cancel something because it’s there.

Do I actually use it? Be honest. If you haven’t touched an app in six months, chances are you won’t.
Is it providing value? Does the subscription’s cost align with the benefits you're receiving?
Are there cheaper alternatives? Could you get a similar service for less money (e.g., a free streaming service instead of a premium one)?
Is there a free trial I can leverage? Many services offer free trials. Test them out before committing.
Can I share a subscription with a friend or family member? Some services allow you to share accounts.

3. Categorize Your Subscriptions – Prioritize for Cutting

Based on your evaluation, categorize your subscriptions:

Keep: Services you regularly use and provide significant value.
Review: Services you're unsure about; set a reminder to revisit them in a month.
Cancel: Services you rarely or never use.

4. Cancellation Strategies – Don’t Be Afraid to Negotiate

Direct Cancellation: Most services allow you to cancel directly through their website or app.
Negotiate a Lower Price: Sometimes, simply calling customer service and politely asking for a discount can work. They might offer a promotional rate to retain you as a customer.
Pause Subscriptions (If Available): Some services allow you to temporarily pause your subscription instead of cancelling it entirely. This can be useful if you’re going on vacation or anticipate needing the service again soon.

5. Ongoing Management – Prevent Future Overspending

Schedule Regular Reviews: Make it a habit to review your subscriptions every 3-6 months.
Set a Subscription Budget: Determine how much you’re comfortable spending on subscriptions and stick to it.
Automate Payments (Carefully): Automated payments can help avoid late fees, but ensure you regularly check your accounts.

Resources to Explore:

Truebill (Now Rocket Money): https://rocketmoney.com/ - Helps track and manage subscriptions.
Google Sheets Templates: Search online for "subscription tracker spreadsheet template."

By taking a proactive approach, you can significantly reduce your subscription costs and start building a healthier financial future. Good luck!