How to Cut Subscription Costs: Streaming, Apps and Memberships

Streaming services, apps, gym memberships, meal kits, software and delivery passes are convenient, and each one may seem inexpensive on its own. But small monthly charges have a way of multiplying quietly. Many people are surprised when they add up everything they pay for each month, and even more surprised by how many services they barely use.

Cutting subscription costs is one of the easiest ways to free up money in your budget, because the savings repeat every single month without any ongoing effort.

Find every subscription

The first step is getting a complete picture. Go through the last two or three months of bank and credit card statements and list every recurring charge. Look carefully, since some subscriptions bill annually and may not appear in a short window. Reviewing a full year of statements catches these.

Don’t forget app store subscriptions on your phone, which are often billed through your Apple or Google account rather than directly. You can see them in your device’s settings. Also check for subscriptions billed to a PayPal account or other payment service.

Write down each service, its cost and how often you’re billed. Converting everything to a monthly or yearly amount makes it easier to see the true total.

Decide what to keep

For each subscription, ask a few honest questions. Did I use it in the last month? Would I sign up again today at this price? Is there a cheaper plan or a free alternative that would meet my needs?

If you haven’t used a service recently, cancel it. You can always sign up again later if you miss it. For services you use occasionally, consider whether the cost per use makes sense. A streaming service you watch once a month might cost more per show than renting a movie.

Smart ways to save on what you keep

Rotating streaming services is a popular strategy. Instead of paying for several services at once, subscribe to one or two at a time. Binge the shows you want, then cancel and switch to another. Since most services let you cancel anytime, you only pay for what you’re actively watching.

Choosing ad-supported tiers can lower costs significantly if you don’t mind commercials. Many streaming services offer cheaper plans with ads.

Family and group plans can reduce the per-person cost when shared with members of your household. Be sure to follow each service’s terms, since many limit sharing to people who live together.

Paying annually instead of monthly often comes with a discount, but only choose this for services you’re confident you’ll use all year. Paying a year upfront for something you abandon after two months wastes money.

When you try to cancel, companies often present retention offers, such as a discounted rate for several months. If you’d keep the service at a lower price, it’s worth asking. Just remember that the discount may be temporary.

Watch out for free trials

Free trials are a common path to forgotten subscriptions. Many automatically convert to paid plans when the trial ends, and it’s easy to forget the date. When you sign up for a free trial, immediately set a calendar reminder a few days before it ends so you can decide whether to keep it. Some people cancel right away after signing up, since many services let you keep access until the end of the trial period anyway.

Make canceling easier

Cancel through the company’s website, the account settings in its app or your phone’s app store settings, depending on where you signed up. Keep any cancellation confirmation emails or screenshots in case you’re charged again.

If a company makes canceling unreasonably difficult or keeps charging you after you’ve canceled, contact your card issuer to dispute the charge. You can also report the company to the Federal Trade Commission at ReportFraud.ftc.gov. Some states also have laws requiring companies to offer easy online cancellation.

Bundle thoughtfully

Some phone carriers, internet providers and retailers bundle streaming services or other perks with their plans. These can offer real value, but only if you would use the included services anyway. A bundle full of things you don’t want isn’t a deal.

Make it a habit

Subscriptions tend to creep back over time as you sign up for new services. Reviewing them every few months takes only minutes and can save hundreds of dollars a year. Consider using a single credit card for all subscriptions, which makes them easier to spot and manage in one place. Redirect the money you save toward a savings goal, so the benefit adds up over time.