Small monthly charges are easy to approve and easy to forget. A once-a-year audit usually finds something.
Step 1: list every recurring charge
Go through the last two or three months of card and bank statements, plus the subscription lists in your phone's app store settings. Look for streaming, music, cloud storage, apps, news, gym, software, delivery memberships, warranty plans and 'free trials' that rolled over.
Step 2: convert everything to a yearly number
Monthly x 12 makes small numbers visible:
- $9.99 a month = about $120 a year.
- $14.99 a month = about $180 a year.
- Eight subscriptions averaging $12 = $96 a month, about $1,150 a year.
Step 3: sort into three groups
- Keep: used weekly and worth the yearly number.
- Rotate: things you like but do not need all at once (streaming services are the classic example). Keep one, cancel and come back later.
- Cancel: not used in the last month.
Step 4: check for cheaper versions
Annual billing is often cheaper than monthly if you are sure you will keep it. Family or shared plans can be cheaper per person. Some services offer ad-supported tiers.
Step 5: stop it creeping back
- Put a calendar reminder the day before any free trial ends.
- Use one card for subscriptions so they are all on one statement.
- Repeat the audit once a year.
Free tools
- Subscription cost calculator: https://smartbudgetsheets.surge.sh/calculators/subscription-cost-calculator/?utm_source=mataroa
- Sinking funds calculator: https://smartbudgetsheets.surge.sh/calculators/sinking-funds-calculator/?utm_source=mataroa
- 50/30/20 budget calculator: https://smartbudgetsheets.surge.sh/calculators/fifty-thirty-twenty-calculator/?utm_source=mataroa
- Debt Payoff Planner, up to 8 debts (Payhip): https://payhip.com/b/PtBLU?utm_source=mataroa
- 42 free budget templates, pay what you want ($0 is fine): https://smartbudgetsheet.gumroad.com/l/ngpkrb?utm_source=mataroa
General information, not financial advice. Figures are rounded examples.