Track spending trends on subscriptions

Tracking spending trends on subscriptions has become increasingly important for individuals and businesses alike, given the growing number of subscription-based services available today. Whether it’s streaming services, software as a service (SaaS), or recurring product deliveries, people often lose track of their spending, which can lead to unexpected costs.

To monitor and manage your subscription spending effectively, consider these methods:

1. Use Subscription Tracking Apps

There are several apps designed specifically to track your subscriptions, giving you a clear view of what you’re paying for each month. These apps typically pull data from your bank and credit card statements to identify subscriptions and categorize them.

Popular options include:

• Truebill (Rocket Money): Helps users track their subscriptions and offers cancellation services if needed.

• Trim: Tracks subscriptions and gives recommendations for cancellation or negotiation.

• Bobby: A more manual approach but offers detailed tracking of recurring charges.

2. Create a Subscription Spreadsheet

A more hands-on method involves maintaining a simple spreadsheet. List every subscription service you use, its monthly or yearly cost, renewal dates, and any other pertinent information such as cancellation terms or changes in pricing. This can be done with tools like Excel, Google Sheets, or Airtable.

Benefits:

• Gives you complete control over tracking.

• Allows you to update and categorize as you like.

• Customizable to include different columns like “cost increase” alerts or “cancellation notice”.

3. Review Your Bank or Credit Card Statements Regularly

If you prefer not to use an app or spreadsheet, the next best option is to make a habit of reviewing your bank or credit card statements. Most financial institutions provide detailed monthly breakdowns of spending, making it easy to spot recurring charges.

This method has its limitations, however, as it doesn’t necessarily give you proactive alerts or insights on when to cancel or adjust your subscriptions.

4. Set Up Alerts or Reminders

You can set up calendar reminders or automatic email alerts for the renewal dates of your subscriptions. Many subscription-based services will notify you when your subscription is about to renew, but setting an independent reminder will help you stay on top of potential changes in pricing.

Consider:

• Using a calendar app (Google Calendar, Outlook, etc.) for one-time or recurring reminders.

• Setting up email alerts with services like Billshark or even Google Alerts for specific services.

5. Categorize Subscriptions into Necessities and Luxuries

Sometimes, it’s not just about tracking, but also understanding whether each subscription is necessary or can be canceled. Breaking down your subscriptions into categories like “essential” (e.g., internet, utilities, work-related tools) and “luxury” (e.g., Netflix, Spotify, meal kits) will help you prioritize which to keep and which to cut.

6. Analyze Your Usage

Tracking how much you actually use a service is crucial. Are you really using that gym membership, or are you constantly forgetting to stream your favorite shows? By monitoring usage, either manually or with tracking apps, you can decide which subscriptions to cancel based on your actual needs.

Many services also offer insights on usage (like Netflix or Spotify), so use those reports to inform your decision.

7. Look for Overlapping Services

With so many services available today, it’s easy to end up paying for similar subscriptions without realizing it. For instance, you might have multiple streaming services that offer overlapping content. Identifying and consolidating these subscriptions can lead to significant savings.

For example:

• You could choose between multiple streaming platforms (Netflix, Hulu, Disney+) and decide which one is your top priority.

• SaaS tools like Microsoft 365 and Google Workspace may offer similar functionalities—opt for the one that meets your needs.

8. Track Subscription Trends Over Time

Once you have a good tracking system in place, try to observe your spending trends. Are you subscribing to more services over time? Do your monthly or yearly costs increase regularly?

Spotting patterns helps in adjusting your subscription habits. For instance, if you notice that subscription costs have increased across the board, you may need to re-assess your entertainment or service options.

9. Be Aware of Hidden Fees

Many subscription services offer introductory prices that increase after a few months or a year. These price hikes are often hidden in the fine print, so it’s crucial to track and be aware of when such increases might occur. Keep an eye on emails from your subscription services regarding pricing changes.

Example:

• A subscription that costs $9.99 per month might increase to $14.99 after 12 months. Knowing this in advance can help you plan or cancel before the hike.

10. Audit Your Subscriptions Periodically

Regularly audit your subscriptions to ensure they’re still providing value. This could be done on a quarterly or bi-annual basis. You can also schedule annual reviews to assess whether you’ve outgrown certain services or if there are better alternatives available.

Doing this not only ensures you don’t overpay but also helps you stay aligned with your financial goals.

Final Thoughts

Tracking subscription spending is a proactive way to manage your personal or business finances. With a little effort, you can save a significant amount of money by cutting out unnecessary subscriptions, consolidating services, or simply being more aware of the costs involved.

Keeping tabs on your subscriptions can become a habit with the right tools, and over time, it will pay off by freeing up resources for other financial goals.