Track Subscriptions and Save Money

The money’s leaking out, isn’t it? I know, it happens to everyone. And sometimes, that slow drain comes down to something as simple as forgotten subscriptions that keep charging you month after month. Did you know the average person wastes over $200 every month on subscriptions they don’t even use? $200! That’s serious cash you could be investing, saving for a vacation, paying down debt, or just, you know, enjoying. If you feel like your money goes somewhere without you knowing where, maybe this guide will help you track your expenses and see where that money is going, just like we explained in our Where Does My Money Go? article.

Today, I’m going to guide you to take control of your finances by tracking your subscriptions and canceling the ones that no longer serve you. Get ready for a deep dive into the world of recurring charges, but don’t worry, it’ll be a painless – and liberating – process.

The Subscription Audit (In Just 15 Minutes)

First things first: identify the “enemy.” It’s time to do a thorough audit of all your subscriptions. Don’t panic. With the tips I’m about to give you, this shouldn’t take more than 15 minutes.

Follow these steps:

Review Your Bank Statements: Carefully examine the last 3-6 months of your bank and credit card statements. Look for recurring charges you don’t recognize or don’t remember authorizing. Things like “StreamingServiceXYZ,” “AwesomeApp Premium,” or even just vague references you don’t immediately place.
Scour Your Emails: Search your inbox (including the spam folder!) for keywords like “subscription,” “membership,” “invoice,” “renewal,” “thank you for your payment,” etc. Don’t forget to check old email accounts you might not use as often anymore. That old college email might still be linked to a forgotten service.
Check Your Online Accounts: Log in to platforms like PayPal, Amazon, Google Play Store, Apple App Store, and any other platform where you’ve made purchases or subscriptions. These platforms often have a dedicated section for managing your subscriptions.
Jog Your Memory: Think about services you used in the past and might have forgotten to cancel. That gym membership you never used after January? The streaming service you stopped watching when you found a better one? The language learning app you downloaded with the best of intentions? Write them all down.

As you find subscriptions, note them down in a spreadsheet or notebook. Include the following information:

Name of the service
Monthly or annual amount
Renewal date
Payment method
Do you use it? (Yes/No)
Do you need it? (Yes/No)

Common Subscription Categories to Review

Sometimes, subscriptions hide in plain sight. Here’s a list of the most common categories where you can find those recurring charges that are slipping through the cracks:

Entertainment: Netflix, Spotify, Hulu, HBO Max, Disney+, Amazon Prime Video, YouTube Premium, etc.
Music: Spotify, Apple Music, Amazon Music Unlimited, Tidal, Pandora Premium, etc.
Software and Apps: Adobe Creative Cloud, Microsoft 365, antivirus software (Norton, McAfee), VPNs (NordVPN, ExpressVPN), productivity tools (Evernote, Todoist), etc.
News and Magazines: Online newspaper subscriptions (New York Times, Wall Street Journal), specialty magazines, blogs with premium content (Substack, Patreon), etc.
Cloud Storage: Dropbox, Google Drive, iCloud, OneDrive, Backblaze, etc.
Delivery Services: Amazon Prime, DoorDash DashPass, Uber Eats Pass, Instacart Express, etc.
Gym and Fitness: Gym memberships (Planet Fitness, Gold’s Gym), fitness apps (Peloton, Nike Training Club), online classes (Yoga with Adriene), etc.
Subscription Boxes: Beauty boxes (Birchbox, Ipsy), food boxes (HelloFresh, Blue Apron), book boxes (Book of the Month), etc. (these add up fast!)
Gaming: PlayStation Plus, Xbox Game Pass, Nintendo Switch Online, online game subscriptions (World of Warcraft), etc.
Dating Apps: Match.com, Tinder Plus, Bumble Boost, Hinge Preferred, etc.
Other: Password managers (LastPass, 1Password), graphic design tools (Canva), language learning apps (Duolingo Plus, Babbel), LinkedIn Premium, ancestry services (Ancestry.com), etc.

Remember that every dollar counts. A $5/month subscription might seem insignificant, but over a year, that’s $60! And if you have several small subscriptions, the impact on your budget can be considerable. Imagine that you and your partner are paying for many services and subscriptions. You can apply some of our tips from Manage Finances as a Couple in this type of expense.

The Decision-Making Framework for Cancellation

Now that you have a complete list of your subscriptions, it’s time to make decisions. It’s not about canceling everything without thinking, but about evaluating whether each subscription provides real value to your life.

Here’s a simple decision-making framework:

Do You Use It Regularly? If the answer is “no” or “rarely,” cancellation is almost automatic. Be honest with yourself. Don’t justify keeping a subscription you haven’t used in months “just in case.”
Could You Get the Same Benefit for Free or Cheaper? Sometimes, free or cheaper alternatives can meet your needs. For example, do you really need a premium subscription to a photo editing app when free online tools are sufficient for your occasional edits? Or maybe one streaming service covers most of what you watch, making the others redundant.
Do You Really Need It? Be honest with yourself. Does that subscription to a gardening magazine inspire you to cultivate your garden, or does it just collect dust in a corner? Is that “productivity” app actually making you more productive, or is it just another distraction?
Does the Cost Justify the Benefit? Compare the price of the subscription with the value it brings you. If the cost is greater than the perceived benefit, it’s time to cancel. Consider the time you spend using the service, the enjoyment it brings, and whether it’s helping you achieve your goals.

Example:

You have a music streaming subscription that costs $10 a month. You listen to music every day at work, but you also have a YouTube Premium subscription that allows you to listen to music without ads. In this case, you could cancel the first subscription and save $10 a month since YouTube Premium offers similar functionality.
Let’s say you pay $25/month for a premium news subscription, but primarily get your news from free sources online and a couple of free newsletters. You might consider cancelling and saving $300 per year!

How to Actually Cancel (Because They Make It Difficult)

Companies don’t want you to cancel your subscriptions, so they sometimes make it difficult. But don’t be discouraged. With a little patience and persistence, you can do it.

Here are some tips:

Read the Terms and Conditions: Before canceling, review the subscription’s terms and conditions to understand the cancellation policy and any potential charges. Look for hidden fees or penalties for early cancellation.
Look for the Cancellation Option in Account Settings: Most subscriptions can be canceled through the account settings on the platform. Look for options like “Cancel Subscription,” “Manage Subscriptions,” or “Billing.” Sometimes, they’re deliberately buried deep within the settings, so be prepared to click around.
Contact Customer Support: If you can’t find the cancellation option online, contact the company’s customer support. Have your account information and subscription number handy. Be prepared for them to try to convince you to stay. Stand firm and politely insist on canceling.
Send a Formal Email: If you can’t cancel the subscription by phone or chat, send a formal email requesting cancellation. Keep a copy of the email as proof. Be sure to include your account details and clearly state your desire to cancel the subscription, effective immediately.
Verify Cancellation: After requesting cancellation, verify that the subscription has been canceled correctly. Check your bank statements and account settings to ensure you are not still being charged. Take screenshots as proof of cancellation, just in case.
Use Cancellation Tools: Some online tools help you cancel subscriptions automatically. Research and choose one that seems trustworthy. Services like Truebill (now Rocket Money) and Trim can help identify and cancel subscriptions, but be aware that they often take a cut of your savings or charge a fee.

Remember that you have the right to cancel a subscription at any time. If a company throws obstacles in your way or charges you undue fees after you’ve requested cancellation, you can file a complaint with the appropriate authorities, such as the Better Business Bureau or your state’s Attorney General’s office.

Building a Subscription Tracking System

Once you’ve canceled the subscriptions you don’t need, it’s important to create a system to track the subscriptions you keep. This will help you avoid unexpected charges and make informed decisions about your recurring expenses.

Here are some options:

Spreadsheet: Create a spreadsheet in Excel or Google Sheets with the following information:
- Name of the service
- Monthly or annual amount
- Renewal date
- Payment method
- Do you use it? (Yes/No)
- Do you need it? (Yes/No)
- Notes (e.g., if you have a discount or promotion)
Personal Finance Management Apps: Use a personal finance management app like ExpenseManager (more on this shortly!) to track your subscriptions. These apps often have specific features for managing recurring expenses and send you reminders before the renewal date.
Calendar: Mark the renewal dates of your subscriptions on your calendar and set reminders to review whether you still need the subscription. Use a color-coding system to categorize subscriptions by type (e.g., entertainment, software, etc.).

Regardless of the method you choose, update your subscription tracking system regularly. Review your subscriptions at least once a month to ensure you’re aware of your recurring expenses and that you’re not paying for services you don’t use.

The Annual Subscription Trap

Annual subscriptions can seem like a good option initially, as they often offer a discount compared to the monthly price. However, they can also be a trap if you don’t use the service regularly.

Before opting for an annual subscription, ask yourself:

Am I sure I will use this service throughout the year?
Can I afford to pay the full amount upfront?
What is the cancellation policy if I change my mind?

If you’re unsure if you’ll use the service throughout the year, it’s better to opt for a monthly subscription, even if it’s a bit more expensive. This way, you’ll have more flexibility to cancel the subscription if you no longer need it.

Also, remember that some annual subscriptions renew automatically. Be sure to turn off auto-renewal if you don’t want to continue using the service at the end of the subscription period. Put a reminder in your calendar a week or two before the renewal date to make a decision and take action.

Establish a Budget for Subscriptions

Once you have control over your subscriptions, setting a budget is important to ensure you don’t overspend on these recurring expenses. This is where applying a Budgeting for Beginners or the 50/30/20 Budget Rule will help you define a healthy allocation for this type of expense.

Here are some tips:

Define a Maximum Limit: Decide how much you’re willing to spend on subscriptions each month.
Prioritize Your Subscriptions: Identify the subscriptions most important to you and ensure they fit within your budget.
Reduce Unnecessary Expenses: Cancel subscriptions you don’t need or look for cheaper alternatives.
Review Your Budget Regularly: Adjust your subscription budget as needed to ensure you’re meeting your financial goals.

Remember that the budget is a flexible tool that helps you make informed decisions about your expenses. Don’t be afraid to modify your subscription budget if your needs or priorities change. For example, if you’re saving for a down payment on a house, you might want to cut back on non-essential subscriptions to reach your goal faster.

How ExpenseManager Helps

ExpenseManager not only helps you track your daily expenses but also allows you to manage your subscriptions efficiently. Here’s how:

Automatic Recording of Recurring Expenses: You can configure ExpenseManager to automatically record the recurring expenses of your subscriptions. This way, you won’t have to manually enter each charge.
Renewal Reminders: ExpenseManager sends you reminders before your subscriptions’ renewal dates. This allows you to review whether you still need the subscription and cancel it if necessary. Set up notifications so you don’t miss these reminders.
Expense Analysis by Category: ExpenseManager allows you to analyze your expenses by category, including subscriptions. This helps you identify areas where you can reduce your expenses. See where your subscription costs stack up against other spending categories.
Custom Budget: You can create a custom budget for your subscriptions and track your progress. ExpenseManager alerts you if you’re about to exceed your budget.
Bank Integration: Connect your bank accounts and credit cards to ExpenseManager to automatically record your transactions. This makes it easier to identify hidden subscriptions and track your spending habits.

With ExpenseManager, you can have a clear view of your recurring expenses and take control of your subscriptions. No more surprise charges or wasted money! You can also use ExpenseManager to manage expenses with friends, as explained in Split Expenses Group Trip, or to keep track of the expenses you share with your partner, as explained in Manage Finances as a Couple. You can even use ExpenseManager to better discuss finances when Moving In Together.

Conclusion

Tracking your subscriptions is a fundamental task for taking control of your personal finances. By identifying and canceling subscriptions you don’t need, you can save a significant amount of money each month. With the tools and tips I’ve provided, you’re ready to say goodbye to those surprise charges and welcome greater financial freedom. Start now to create a solid budget and make informed decisions about your expenses. Consider these changes a good topic of discussion with your roommate and how to handle Roommate Expense Tracker Guide.

Ready to stop throwing your money away on forgotten subscriptions? Create your free ExpenseManager account and start saving today.