How to Cut Back on Monthly Subscription Costs

Let's be honest, it’s easy to get caught in the subscription trap. We sign up for a free trial, then before we know it, we’re paying a monthly fee for services we barely use. It happens to the best of us! But don't despair – there are plenty of ways to take control of your spending and cut back on those recurring monthly charges.

February 3rd, 2024 – It’s a good time to really take stock of where your money is going, and let’s start with those subscriptions.

1. The Audit: Track Your Spending

The first step is to understand exactly what you're paying for. For one month, diligently track every subscription you have. Use a spreadsheet, a budgeting app (like Mint or YNAB), or even just a notebook. Be honest with yourself! Here are some common culprits:

Streaming Services (Netflix, Disney+, Hulu, Spotify, Apple Music)
Software Subscriptions (Adobe Creative Cloud, Grammarly, VPNs)
Fitness Apps & Online Classes
Newsletters & Magazines
Gaming Subscriptions (Xbox Game Pass, PlayStation Plus)
Cloud Storage (Dropbox, Google Drive)

2. Identify What You Actually Use

Once you have a list, critically evaluate each subscription. Ask yourself:

How often do I really use this service? If you haven't touched that premium meditation app in six months, it’s probably time to let it go.
Are there cheaper alternatives? Could you switch to a less expensive streaming service, use a free music streaming platform, or utilize a free version of a software program?
Do I need all the features? Many services offer tiered pricing. Could you downgrade to a cheaper plan that meets your basic needs?

3. Cancellation Strategies - Don’t Just Forget!

Set Reminders: Most subscription services send automated renewal reminders. Set one up for yourself before the renewal date.
Automated Cancellation: Some services allow you to automatically cancel your subscription a few days before the renewal. Take advantage of this!
Contact Customer Support: If you’re struggling to find the cancellation option online, don’t hesitate to call customer support. They’re usually happy to assist you.

4. Creative Cost-Cutting Ideas

Family Sharing: If you live with others, share subscriptions where possible.
Bundle Deals: Look for bundles that combine services you already use.
Free Trials – Strategically: Only sign up for free trials if you’re genuinely interested in the service. And set a reminder to cancel before the trial ends.

5. Reclaim Your Savings

Every dollar you save on a monthly subscription is a dollar you can put towards your financial goals – whether it’s paying down debt, building an emergency fund, or investing for the future.

Taking control of your subscriptions is a surprisingly impactful way to improve your financial health. Start today and see how much you can save!