Are you overpaying for subscriptions? It's time for an audit

From streaming platforms and apps to gym memberships and meal kits, subscriptions are convenient, but it's easy to overlook how much you're spending (Getty Images / doomu)

Are you suffering from subscription overload?

From streaming platforms and apps to gym memberships and meal kits, subscriptions offer a convenient and affordable way to pay for all of the little services that make our lives more enjoyable.

While convenient, it’s easy to overlook just how much you’re spending each month, and many people find themselves overpaying for subscriptions they rarely use, or don’t need at all.

Below, I’ll share some helpful tips on how to prevent excess subscriptions, how to take advantage of free trials (the right way), and how to audit your existing subscriptions so you can save money and keep what matters most.

Subscription overload

The rise of subscription-based models has transformed the way we consume media and services. Back in the day, you or your family may have had a single monthly television subscription, or maybe a membership to a movie rental store.

• The information you need to know, sent directly to you: Download the CTV News App

Now, almost all forms of entertainment have been all but completely replaced by subscriptions. If you’re reading this, chances are that you have at least a few on your phone right now. Subscriptions can come in the form of:

• Streaming platforms like Netflix or Amazon Prime
• Paid app plans like YouTube Premium
• Streaming audio services like Spotify or Apple Music
• Gym memberships
• Online forum memberships

Some people are even paying monthly subscriptions for features on their cars.

The point being, with so many monthly or yearly charges on auto-renewal, it’s very easy to lose track of how much you're spending. Over time, small costs can add up, leaving you overpaying for services you may no longer use or need.

This is also one reason why creating a budget expense-monitoring system for yourself is so important.

Conducting a subscription audit

I think that once a year, everybody should complete an audit of all of their subscriptions. The easiest way to do this is to check your bank account and credit card statements and take a note of every subscription that comes out, and the dates.

Once you have a list of all your subscriptions and payments, create a new list and separate the memberships into categories, such as:

• Health/fitness
• TV/movies
• Music/audio
• Apps/games
• Business/productivity
• Finance/money management

Next, you’ll want to look for any redundancies (i.e. paying for two music streaming services at the same time that both offer identical music choices). These are the first ones that should get cut.

• Visit our opinion page for more editorials from this columnist and others

Then, go through your list and take a few minutes to evaluate each subscription and how often you use it. For example, if you’re paying $100 a month for a high-end gym that you only go to once a week, you’re essentially paying $25 each time you visit the gym. At this point, it’s probably a better idea to downgrade your membership or go somewhere cheaper.

On the other hand, you may have some apps that you use on a daily basis. These should be the ones that you keep.

Consider downgrading

If you find yourself on the fence about a certain subscription, getting rid of it entirely may not be the best choice. Instead, consider downgrading to a more affordable subscription tier. This will still give you access to the subscription but will also save you money.

Pro tip: sometimes if you threaten to ‘cancel’ a subscription through the app, you’ll be shown a pop-up screen that will offer you a special low rate. This can be a clever hack to quickly save on subscriptions.

Taking advantage of free trials

Most apps offer free trial periods or special promotional periods, so you can try the subscription out before you commit. The only problem is that most people forget to unsubscribe or cancel the free trial before the first automatic payment comes out.

The easiest way to prevent this is to set an alarm notification on your phone as soon as you sign up for the free trial. Set the alarm the day before your trial period ends, so you have time to decide whether you want to keep the subscription or cancel it before the money’s taken out.

Final thoughts

I have a number of subscriptions that I use on a daily basis that really help me stay organized or that simply provide entertainment during my downtime. However, even I occasionally fall victim to free trials or subscribe to a streaming platform, just for that one TV show, only to forget to cancel it once the show ends.

The important thing is that you don’t get so carried away in subscriptions and memberships that you have money coming out of your account that you can’t trace. Performing a subscription audit and using an expense-tracking program is the best way to see that you’re always on top of your money.

Christopher Liew is a CFA Charterholder and former financial advisor. He writes personal finance tips for thousands of daily Canadian readers at Blueprint Financial.

Do you have a question, tip or story idea about personal finance? Please email us at [e-mail].