In one way or another, subscriptions have become part of our lives. From paying for streaming services, internet networks, software tools, and even fitness apps, it’s either monthly or yearly subscription fees. While these might be convenient, they also add up fast to take money out of your wallet before you can even notice.
How to save money on subscriptions is one trick you will learn within this post to help anyone trying to manage a budget.
Fortunately, with good strategies in place, you can save much of these recurring expenses and still have enjoyment from those services.
Types of High-Cost Subscriptions
Before looking into saving tips, let’s glance at a few types of the most common and high-cost subscriptions that people usually spend money on:
1. Streaming Services – Video and Music
Streaming services can indeed be considered among the rave of the people at this time. While providing access to a treasure trove of content, these can get quite expensive, especially if you’re using more than one subscription.
The idea of paying a subscription for many different platforms, which all amount to about $10-$15 each month, tends to add up over the course of the year.
2. Cloud Storage Services
Cloud backup of files is a service provided by services such as Dropbox, Google Drive, iCloud, and Microsoft OneDrive, among others.
While basic versions are free, paid subscriptions for added storage or other premium features cost more than $10 per month.
3. Software Subscriptions
Subscriptions to software suites like Adobe Creative Cloud, Microsoft Office 365, and others often have a monthly fee.
Most professionals couldn’t live without them, but those costs can certainly add up, eating into your bottom line.
4. Fitness and Wellness Apps
The memberships and subscriptions to fitness apps, yoga, meditation applications like Calm or Headspace, begin anywhere from $10 up to $50 dollars per month.
These are great for health, but they start to add up after adding in all the other monthly fees.
5. News and Magazine Subscriptions
More and more, it is the case that digital and print media charge for access to news and premium content.
Several subscriptions to newspapers, magazines, or specialized news platforms will easily surpass $20 per month.
6. Gaming and Entertainment Subscriptions
Other forms of gaming-related subscriptions may include Xbox Live, PlayStation Plus, and game-specific subscriptions, as with World of Warcraft.
A subset of entertainment services can include services such as audiobook or e-book subscriptions: Audible, Kindle Unlimited, among others, may also fall into this category at $15 or more per month.
These subscriptions, though helpful and entertaining, start to add up to hundreds of dollars a month. You can learn to save money by first taking stock of the subscriptions you have, and then prioritizing their value.
How to Save Money on Subscriptions
It doesn’t have to be a choice between saving money on subscriptions and enjoying the things you love.
ou can trim costs on subscriptions without sacrificing their value by merely using a few practical strategies. Here’s how:
1. Conduct a Subscription Audit
The first step to saving money is to know where your money is going. Take the time to go through your bank statements or use subscription-tracking apps, such as Truebill or Bobby, to see all the services you’re currently paying for.
This audit will help you identify which subscriptions are worth keeping and which can be canceled.
2. Cancel Unnecessary Subscriptions
After having audited your subscriptions, cancel those that you don’t use anymore or those you deem unnecessary.
It is just easy to forget about all those things that you signed up for but actually don’t use that often.
If you have not logged into some service in months, or use it once every couple of months, perhaps this may be the right time to cancel such a service.
3. Switch to Annual Subscriptions Instead of Monthly Payments
A lot of subscription services offer a discount for paying in one single annual payment versus a month-to-month one.
If there are any services you use on a regular basis, it may make sense to switch over to an annual plan if the overall cost is lower.
Quite often, annual payments provide savings of 10%–20% when compared to monthly fees.
4. Take Advantage of Family Plans or Group Discounts
Many services, therefore, offer family plans or discounts if you are willing to sign up with a group.
If you live with family members or friends, splitting the cost of a family plan can be one of the great ways to save money.
Instead of having each person pay for his or her account, you can share a similar subscription at a lower cost per head.
5. Rotate Subscriptions
Consider a rotation among these subscription services. Probably, you have had Netflix for three months, canceled it, and subscribed to Disney+ for the next three months.
By rotation, you will avoid paying for more than one subscription service, yet you can have what you need from the services.
6. Negotiate or Downgrade Plans
Sometimes, you can negotiate with the provider of the subscription for a lower rate, especially if you have been their customer for a while.
Many companies would rather give a discount to you than to lose you as a subscriber altogether.
If not all of the features in a premium plan are needed, it may be worth it to downgrade to a more basic and lower-cost version.
7. Be prudent about Free Trials
Take advantage of free trials whenever possible. Remember when the free trial ends and set a reminder to remind yourself where you can cancel it before they start charging your card.
That way, you will get to enjoy the service for free without accidentally paying for a subscription you don’t mean to keep.
8. Bundle Services
Other services have bundles in which you get numerous services for one low price. Take Amazon Prime, where you get free shipping and all the videos on Prime Video.
You can also get bundling with Hulu, Disney+, and ESPN for a way lower price than if you were paying the subscriptions individually.
How Much Can I Save by Canceling Subscriptions?
Everything will come down to how many subscriptions you are on and how much each one costs.
For example, if you have five services costing $10 a month each, just by canceling two of these, you stand to save $240 per year.
By auditing your subscriptions and removing ones you don’t use, you can save hundreds of dollars every year.
Is It Better to Downgrade or Cancel a Subscription Entirely?
Whether to downgrade or cancel depends on how much you use the service and the features you need.
If you still see value in the service, downgrading will help you eliminate features that you do not need from the premium plan.
You may, for instance, downgrade from a $15 monthly plan to the basic $5 one, saving you $120 annually.
It is, however, better to cancel if you hardly or no longer use the service. Reflect on which one gives more value to your life and base your decision on that.
Final Thoughts
Saving money on subscriptions is an important skill for those who want a healthy budget in a world where subscription-based services are on the rise.
You will be able to save a much larger amount once you audit your subscriptions, cancel what you don’t need, rotate, or downgrade plans and get family or group discounts.
Being successful is really a matter of mindfulness and intentionality: you subscribe only to that which really adds value to your life and cancel those things that don’t.