Examine and Review Your Recurring Autopay Payments
Revised Article:
Most Americans drop around $924 a year (or about $77 monthly) on subscriptions, according to a recent survey. But are all these subscriptions truly adding value to our lives, or are we mindlessly paying for services we don't use? Here's a no-frills guide to help you audit your subscriptions for a more financially savvy life.
Why you need a subscription audit
Subscription services offer convenience, but they can silently drain your bank account, especially when left unchecked. These services tend to renew automatically, making them hard to monitor. Plus, it's easy to fall into the trap of free trials that turn into recurring costs when you forget to cancel. Even if you're selective, some services could increase their prices after you become a regular user, adding up across multiple services.
How to conduct a subscription audit
You don't necessarily have to resort to dedicated subscription-tracking apps, which may come with additional fees. Here's a cost-effective DIY approach:
- Review your credit card, debit card, and banking statements for the past year. Don't recognize a few charges? Plan to cancel them. Set reminders to check up on your subscriptions every couple of months.
- Dig deeper: Check your emails for subscription confirmations and receipts. Look through app store subscriptions, payment services like PayPal, Venmo, or Cash App, and your Amazon recurring orders and subscriptions. Don't forget about annual subscriptions that may not appear in recent statements.
The subscription tracker blueprint
Create a simple spreadsheet for each subscription, including:
- Service name
- Cost per month/year
- Billing date
- Last time you used the service
- Essential or non-essential status
This visual representation helps you understand your total spending and identify areas for cutting costs.
Assessing the value of each subscription
Take an honest look at which subscriptions truly add value to your life. Ask yourself:
- When was the last time you used this service?
- Does this subscription save you money compared to pay-per-use options?
- Could you downgrade to a cheaper tier?
- Is there a free alternative that would work nearly as well?
- Does this subscription significantly improve your life?
Time to take action
For services you decide to keep:
- Mark the renewal dates on your calendar
- Look for annual payment options for possible discounts
- Contact customer service to negotiate better rates
For those you don't need:
- Cancel them immediately
- Save confirmation screenshots
- Remove payment information when possible
The final word
Cutting just $50 in monthly subscriptions saves $600 annually. Consider scheduling quarterly subscription audits, enabling notifications for subscription charges, and even using a dedicated credit card for subscriptions to easily track spending.
Make some time this weekend to audit your subscriptions. Your wallet (and future self) will thank you.
Additional Insights:
Subscription audits aren't just for personal finance. Companies can also benefit from conducting regular audits of their own subscriptions to reduce costs, enhance efficiency, and improve the bottom line. To conduct an effective subscription audit, follow these steps:
- Identify Subscriptions: Gather data on all active subscriptions, including software, services, and physical products.
- Evaluate Usage: Assess how frequently each subscription is used. Utilize surveys, analytics tools, and employee feedback to gather insights.
- Review Costs and Benefits: Calculate the total cost of each subscription and compare it to its benefits. Assess the return on investment (ROI) for each subscription.
- Make Decisions: Base renewal, cancellation, or negotiation decisions on the evaluation.
- Monitor and Adjust: Regularly review subscriptions to ensure they remain relevant and cost-effective.
When conducting a subscription audit, use automation tools, collaborate with various departments, set clear goals, document the entire process, and communicate changes effectively to achieve optimal results.
- In your quest for budgeting and personal-finance management, consider conducting a subscription audit if you're spending around $924 a year on subscriptions, as this can help reveal services that might not be adding significant value to your life.
- To ensure your monthly budget isn't drained by hidden subscription costs, regularly audit your subscriptions by reviewing your statements and emails, identifying non-essential services, and cancelling them to save money, which could potentially amount to $600 annually.
