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The Easy Way to Overspend: Are You Losing Money on Subscriptions?

July 2, 2024

Managing Rising Subscription Costs and Forgotten Payments

 

 

Short on time? Here are three quick bullets about the article:

  • Rising Subscription Costs: The average American spends $219 per month on subscriptions, often underestimating the total amount by over $100, leading to unnoticed financial strain.
  • Forgotten Payments: Many households have ongoing autopayments for unused services, with 42% of households paying for subscriptions they no longer use.
  • Managing Subscriptions: Reviewing financial statements or using specialized apps can help track and cancel unwanted subscriptions, allowing for better expense management.

 

In the last few years, we’ve become accustomed to many convenient services, many offered via subscriptions. However, in the old days, if you had a few magazines or newspapers stacked up, you might not pay to continue your service. Nowadays, today’s subscriptions typically offer autopay, which is convenient and quickly forgotten for many.

C&R Research reports that the average American spends $219 monthly on subscriptions for streaming services, news websites, and even regular deliveries of our most often-used goods, such as beans or pet food.1

Additionally, there is also increasing evidence that these subscriptions are getting out of hand for some households. Many need clarification about how much they spend on their services, often underestimating the amounts by upwards of $100 per month.2

Furthermore, some still need to remember they were subscribed to a service. As many as 42 percent of households have some ongoing autopayment for a service they no longer use.2

As we all know, these fees can add up quickly and become an unnecessary drain. Some of them are for things like streaming services; you subscribe to see the big new movie or series and keep it going even though you’re done with the show.

In contrast, others could be more straightforward. For example, you may have signed up for premium rideshare or restaurant and grocery delivery services that are no longer necessary or may not merit the extra expense.

While you can track these extra expenses with a quick review of your checking account and credit card statements, several apps can help you review these payments and even help you cancel them all at once.

One of the nice things about subscription culture is that turning them off can be easy and doesn’t need to be goodbye forever. Unsurprisingly, the services make it reasonably easy to turn your subscriptions on and off as needed, so there’s no reason not to take advantage.

Ready to Put Your Savings to Work?

You’ve found the hidden drain on your finances and taken control—now it’s time to let your money grow! Imagine the possibilities of investing those hard-earned dollars you’ve saved from cutting unnecessary subscriptions. From building an emergency fund to planning for your future, every penny counts.

At CH Dean, we’re here to guide you every step of the way. Start your investment journey today and turn your savings into something spectacular.

Contact Us Now to Discover How!

 

  1. cbsnews.com, December 26, 2023
  2. cnbc.com, September 6, 2022