6 tips to curb your digital subscription addiction and start saving money

Americans are in penny-pinching mode early, with consumer sentiment in a significant slide.

One way to boost household budgets is to wage a full-frontal attack on digital subscriptions, which can grow like weeds on an Illinois prairie. One CNET survey estimated Americans spend about $1,000 on subscriptions annually. Another study from Forbes Home pegs the estimate higher, finding that Americans spend more than $1,330 per year on streaming at home.

Tackling subscriptions head-on

With Americans spending an average of three hours and 25 minutes streaming media each day (about 23 hours per week) and with those subscription costs rising (44% of people surveyed by Forbes noted at least one streaming price hike in a year), it’s high time Americans self-correct their digital streaming habits.

“$12.99 really doesn't sound like much, especially for a subscription you want and will use,” said Bob Chitrathorn, vice president of wealth planning at wealth management firm Simplified Wealth Management.

The problem, Chitrathorn notes, is that people try the subscription but often forget to cancel once they become indifferent. “You’re also not physically handing over cash or even swiping a card, so you’re not as emotionally attached to your 'money' that way,” he noted.

Other financial experts say subscriptions are designed to have you forget about them.

“Service providers prefer offering low subscription fees with free trials that auto-roll into active accounts that renew after every billing period,” said Ilir Salihi, founder and senior analyst at IncomeInsider.

If the charge is "out of sight, out of mind," Salihi noted, the customer is less likely to complete the required steps to cancel. “They exploit human psychology to keep you subscribed to their product, since $12 feels harmless, but a dozen of them is basically a car payment,” he added.

Six ways to curb subscription costs once and for all

Consumers saddled with skyrocketing subscription costs have several good options, household financial gurus say. These subscription-killing cues led the way.

Know where you stand

Streaming services used to be much cheaper, but their monthly prices have been increasing by $1–$3 per year. As a digital subscription streamer, job one is to know how much you’re paying each month.

“Disney $DIS is especially guilty of this,” said Olivia Bono, an analyst at CableTV.com. “They tend to raise Disney+, Hulu, and ESPN’s prices every Fall. Many Americans may not even know these price increases are happening, or realize that the monthly price of a Disney+ Premium subscription has increased by $12 since 2019.”

Check to see if you’re double-paying

You might be paying for a subscription twice. “If you’re a Spectrum cable subscriber, you already get ten streaming services included with your monthly bill,” Bono said.

“Go through the list and cancel any that you’re paying for individually.”

Pay attention to stream-by-stream payments

Paying individually for ad-free Amazon $AMZN Prime Video, Apple $AAPL TV, Disney+, HBO Max, Hulu, Netflix $NFLX, Paramount $PARA+, and Peacock will cost you just about $130/mo. “If you’re not looking into bundle discounts, you could be overpaying,” Bono said.

Take 30 minutes to run a manual audit

Salihi advises searching your email inbox for keywords like "subscription", "receipt", "trial", and "renewal" to find your recurring subscriptions.

“You should also check your billing history on your Google $GOOGL and Apple accounts, as well as your 90-day credit card and PayPal $PYPL transaction histories,” he said. “Once you've identified a list of subscriptions you no longer want, log into each of them and turn off auto-renewal in your account settings panel.”

If you're on the fence about a product or service you're subscribed to, set a calendar reminder a few days before it renews. “That way, you can determine whether to keep or cut it later on,” Salihi noted. Also, look into bundling services or accessing student rates if you're eligible.

Cut out recurring subscriptions for more budget-friendly streaming options

“If you can access free alternatives through your workplace, school, or public library, take full advantage. You'd be surprised what your local library can offer,” Salihi said. “My library has enough entertainment on offer to 'totally eliminate' services like Netflix, Hulu, and Spotify $SPOT.”

Turn off automated-renewal tabs

When it comes to eliminating subscriptions, the most effective approach is intentionality over deprivation.

“Auto-renew is designed to work against us, so turning it off as soon as you subscribe puts the control back in your hands,” said Amanda Spann, an entrepreneur and mobile app analyst who works with subscription-based companies. Digital subscription trackers like Rocket Money can be helpful because they surface recurring charges and make cancellations easier.”

“The real key is shifting your mindset,” Spann said. “You can always re-subscribe later, and doing so should be a conscious choice rather than a passive one.”

Reducing overlap between similar services also goes a long way. “Most people don’t need multiple platforms offering the same type of content or functionality at the same time,” Spann added.

Don’t make this subscription-added error

The biggest mistake people make with subscriptions is signing up for an entire platform just to access one show, one feature, or one moment of entertainment without a clear plan to cancel.

“That single decision often turns into a long-term expense simply because it gets forgotten,” Spann noted. “A little discipline and intentionality can go a long way in protecting both your budget and your peace of mind.”