The average American spends over $200 per month on subscriptionsâand many don't even realize it. From streaming services to gym memberships to apps you forgot you signed up for, these recurring charges can silently drain your bank account.
The Subscription Creep Problem
It starts innocently: a free trial here, a "just $9.99/month" there. But subscriptions add up quickly. A study found that consumers underestimate their subscription spending by nearly 200%. That forgotten $15 app and unused $30 gym membership could be costing you $540 a year.
How to Conduct Your Audit
Step 1: Gather Your Statements
Review the last three months of bank and credit card statements. Look for recurring charges and list every subscription you find. Include the amount and billing frequency.
Step 2: Categorize Your Subscriptions
Sort them into categories:
- Essential: Services you use daily and truly need
- Nice to have: Used occasionally but not critical
- Forgotten: You didn't remember you had this
- Unused: Haven't used in the last month
Step 3: Make Decisions
Be ruthless. Cancel everything in the "forgotten" and "unused" categories immediately. For "nice to have" subscriptions, ask yourself: "Would I pay for this again today if I didn't already have it?"
Step 4: Look for Overlaps
Do you really need Netflix, Hulu, HBO Max, AND Disney+? Consider rotating servicesâsubscribe to one for a few months, then switch to another.
Common Hidden Subscriptions
- Free trials that converted to paid
- Premium app versions you don't use
- Cloud storage you exceed your free tier
- Insurance add-ons from purchases
- Membership fees (gyms, clubs, warehouse stores)
- Software subscriptions billed annually
Preventing Future Subscription Creep
Set calendar reminders before free trials end. Use a dedicated email for subscriptions so they're easy to track. Review your subscriptions quarterly, not just when you remember.
Consider using apps like Rocket Money or Truebill that automatically track subscriptions and can even help cancel them for you.