Subscription creep is real!
Do you remember how many subscriptions you have signed up for? What about just the number of subscriptions over the last 2-3 years? Chances are, you don’t. And you’re not alone. I don’t know my number either. And if you don’t regularly go through your bank statements, you are probably paying for subscriptions you are not even using anymore. Let’s talk about subscription creep and how to combat this!
What Is Subscription Creep?
Subscription creep is the phenomenon that happens when you set up recurring payments for a subscription, maybe use it for a while, then forget about it… and still pay for it. It’s the accumulation of all these subscriptions and payments that you forget about. A lot of times, these companies are counting on you forgetting. They get a monthly revenue from you, and you get… what? Something you forgot about? Something you don’t use? Let’s tackle this!
How Much Are You Really Paying?
According to this study, 84% of Americans underestimate what they pay for their subscriptions. If you ask the average person, they will say they pay about $80 a month. Let’s multiply this by 12. That’s $960 a year on subscriptions! What could you do with an extra nearly $1,000 a year? However, when the math was added up, the actual cost was close to $238 a month!! Let’s multiply that dollar amount by 12. That’s $2,856 a year! On subscriptions! What could you do with an extra nearly $3,000 a year? I’ll say, I would go on more weekend getaways with my family.
We Overestimate!
Of the 84% that underestimated how much they spend on subscriptions, 10% were off by $300 or more! We are obviously unaware of just how much we spend just on these seemingly small recurring expenses.
When you commit to any service, monthly or annually, your bank account will be drafted that amount for all of time… unless you cancel. One easy way to forget is when you sign up for a free trial and not cancel in time. If you only want the free trial, put a reminder in your phone or on your calendar the day before the trial ends to cancel that subscription. Anytime you put in your bank information, read the fine print. When will the charges begin? How often will they occur?
Closely Look At Your Bank Statements
At least once every month, look through your bank statements to check for recurring expenses. Many clients I’ve had are shocked at what they are paying for! You must do this every month because some subscriptions are drafted yearly. If you only look back a month or two (or three), chances are, you are missing those yearly subscriptions.
I always say this is the easiest and most painless way to start trimming your expenses. You are cutting out what you are not using! And you could be one of those that “find” an extra few hundred dollars every month and a few thousand dollars every year. What could you do with that?
Final Thoughts
More and more companies are making it too easy to sign up for a subscription. Looking at your bank statements every month will help you combat subscription creep. Also, putting reminders in your phone or calendar before the next due date will remind you to cancel any subscriptions you are no longer using.
If you need help taking control of your finances instead of having your finances control you, please check us out at Ford Financial Management. Our mission is reduce your money stress and anxiety so you sleep well at night.
