We all do it. We all have a number of interests and life necessities, and usually the easiest and quickest way to access what we need is through paid subscriptions.
But how many do we really need, and how many do we actually really use on a regular basis?
The services pile up and so do the charges on our credit card bills. Each subscription by itself is not a lot of money, but cumulatively they can make a real dent in our monthly budget.
Welcome to the world of Subscription Creep!
So what are the signs of Subscription Creep, how can we manage the problem, and how can we work on avoiding it in the future.
5 Signs of Subscription Creep
1. Unrecognized Charges:
– Regularly spotting charges on your bank or credit card statements that you don’t immediately recognize can indicate that you might have a problem.
2. Unused Services:
– If you have subscriptions that you haven’t used in months, you are probably paying for services you no longer need.
3. Price Increases:
– Many subscriptions increase their prices over time. If you notice that your monthly or annual costs have gone up without a corresponding increase in value, you are witnessing subscription creep.
4. Free Trials That Turn to Paid Subscriptions:
– One of the most pernicious ways that subscription creep can strike is when we forget to cancel free trials. Free trials are designed to convert into paid subscriptions, and you may be months into paying before you realize that the trials have converted.
5. Multiple Similar Services:
– Having multiple subscriptions for similar services (e.g., several streaming platforms).
6 Strategies to Identify and Manage Subscription Creep
1. Conduct a Subscription Audit
– Review Financial Statements:
– Go through your bank and credit card statements to identify all recurring charges. Look beyond just the most recent month, as some subscriptions renew quarterly or annually.
– Check digital wallets like Apple Pay or Google Pay for any linked subscriptions.
– List All Subscriptions:
– Create a comprehensive list of all your subscriptions, including the service name, cost, and renewal period. This will give you a clear overview of your recurring expenses.
2. Evaluate Each Subscription
– Usage Frequency:
– Assess how often you use each service. If you haven’t used a subscription in the last three months, consider canceling it.
– Value Analysis:
– Compare the cost of each subscription to the value it provides. Does the service meet your needs or expectations? Is it hard to say whether or not you are receiving the proper amount of value? If it is hard to answer these questions, then it is probably time to cancel.
– Explore Alternatives:
– If a subscription is not providing enough value, look for alternative services that offer similar benefits at a lower cost.
3. Use Subscription Management Tools
– Apps and Services:
– There are tools that can be utilized that can help you to track and manage your subscriptions.
4. Set Reminders and Regular Reviews
– Regular Reviews:
– Set a reminder to review your subscriptions every three to six months. This helps you to ensure that you stay on top of your recurring expenses and that you can make adjustments as needed.
– Trial Periods:
– Take advantage of trial periods to assess whether a subscription meets your needs before committing to a long-term plan. Set reminders to cancel before the trial ends if you decide that you do not want to continue.
5. Optimize
– Consolidate Services:
– If you have multiple subscriptions for similar services, consider consolidating them. For instance, choose one streaming service instead of subscribing to several.
– Consider bundling services from a single provider if they offer a discount for multiple subscriptions. Additionally, explore sharing options with family or friends to split the cost.
– Downgrade Plans:
– If you don’t need all the features of a premium plan, downgrade to a more basic, less expensive plan.
– Flexible Plans:
– Opt for subscriptions with flexible plans that allow you to upgrade or downgrade as per your needs. This can help you adjust your expenses based on your current usage.
– Negotiate Rates:
– Contact service providers to negotiate a better rate or find an alternative plan that better suits your needs. Many companies are willing to offer discounts to retain customers.
6. Monitor and Adjust Regularly
– Keep Records:
– Save confirmation emails or screenshots of subscription cancellations. This helps you verify that the cancellation was processed correctly.
– Monitor Statements:
– Continuously monitor your bank and credit card statements to ensure no unauthorized or forgotten subscriptions are being charged.
Conclusion
It requires some discipline and a willingness to be proactive, but the potential reduction and avoidance of unnecessary spending can be quite significant.
By following these strategies, you can effectively manage subscription creep, ensuring that you are only using your money on services that you truly need and that genuinely enhance your life.
