It’s Time to Check Your Autopay Subscriptions

According to a recent survey, on average Americans spend $77 per month (or $924 per year) on subscriptions. But how many of these subscriptions actually add value to our lives, and how many are set to auto-pay and just slip away every month? From streaming entertainment and fitness apps to meal delivery kits and software tools, if you’re not sure how much you’re spending each month on subscriptions, it’s time to do a personal audit.

Why do you need an audit of your subscriptions?

While subscription services are convenient, they can quietly drain your bank account if left unchecked. There’s a reason auto-renewing subscription payments are called “evergreen.” At the end of your monthly or annual subscription period, these services will automatically renew unless you choose to cancel. Of course, that’s why they’re so hard to track. If you stop using a service, you will usually forget it exists and won’t notice the costs accruing.

It’s also all too easy to fall victim to the free trial trap. Many services entice customers with free trials that automatically convert into paid subscriptions. Companies are counting on you to forget to cancel your subscription before the end of the trial period, turning your short-term interest into a recurring expense.

Even if you’re selective about what you do, subscription services often increase their prices after you’ve become dependent on them. This increase may seem small individually, but it adds up across multiple services.

How to audit a subscription

Of course, you can download a dedicated subscription tracking service. These apps connect to your bank accounts and automatically identify your subscription services, which you can then track on a dedicated dashboard. But remember that many of these apps are tiered and there may be a monthly fee for additional services, making them… just another auto-pay subscription service. Here’s how to conduct an audit yourself and for free.

Keep track of all your subscriptions

The first step is to determine recurring payments on your credit card, debit card or online banking account. Take an hour to list all of your monthly and annual subscription expenses for the past year. Don’t recognize some of them? Or maybe there is a service that you like but rarely use? Go ahead and cancel them. Create a calendar reminder for yourself to do this about once a month if you really want to stay on top of things.

Some charges may be difficult to identify, so you’ll need to play detective by following these steps:

• Review your credit card and bank statements for the last three months.

• Check your email for confirmations and subscription receipts.

• View your subscriptions in the app store (Apple App Store, Google Play)

• Check payment services such as PayPal, Venmo or Cash App.

• View your recurring orders and Amazon subscriptions.

Don’t forget about annual subscriptions, which may not appear in the latest reports.

Create a subscription tracker

Now it’s time for the spreadsheet. For each subscription, document:

• Service name

• Monthly/yearly cost

• Invoice date

• Last time you used the service

• Regardless of whether it is significant or unimportant

This visual representation will help you understand your overall subscription costs and identify potential cuts.

Evaluate the value of each subscription

Assuming you don’t intend to go all scorched earth, you’ll need to evaluate each subscription to see if it’s a good fit. Ask yourself the following questions for each service:

• When was the last time I used this?

• Does this subscription save money compared to pay as you go?

• Can I upgrade to a cheaper tier?

• Is there a free alternative that will work almost as well?

• Will this subscription improve my life?

Be honest about which services actually add value, rather than those you leave out of habit or inertia.

Take action: cancel, suspend or negotiate

For services you choose to keep:

• Mark your renewal dates on your calendar.

• Look for annual payment options that may offer discounts.

• Contact customer service to negotiate better rates

For those who don’t need it:

• Cancel immediately (don’t wait until your next billing cycle)

• Take screenshots of your cancellation confirmations.

• Remove payment information if possible.

Bottom line

Think of it this way: even cutting your monthly subscription by just $50 could save you $600 a year. I recommend implementing a permanent system. Schedule a quarterly subscription audit in your calendar, turn on notifications for all subscription expenses, and even consider using a dedicated credit card for subscriptions to easily track expenses.

This weekend, take an hour to check your subscriptions. Your future self (and bank account) will thank you.

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