Embrace Frugality with a "Cancel All" Mentality for Maximizing Your Savings
In the digital age, it's easy to accumulate a plethora of subscriptions, from streaming services to app subscriptions. However, these recurring charges can add up and potentially lead to unnecessary expenses. By auditing and cancelling unwanted subscriptions, you can save a significant amount of money annually. Here's a step-by-step guide on how to do just that.
Audit Your Subscriptions
The first step is to identify all active subscriptions. Review your bank and credit card statements, as well as emails, for recurring subscription charges over the last month or more. You can also use budgeting or subscription-tracking apps like Rocket Money to automatically find and manage recurring subscriptions. Paid tiers can even cancel unwanted subscriptions on your behalf.
Evaluate Each Subscription
Once you've identified all your subscriptions, it's time to determine which ones add real value and which ones are rarely used or no longer needed. For example, you might subscribe to a streaming service just for one show or an app you seldom open. Consider consolidating subscriptions where possible to simplify billing and improve monitoring.
Cancel Unnecessary Subscriptions
Log into the subscription service’s website or app. Navigate to account-related menus such as "Account Settings," "Billing," or "Subscription." Find and use the "Cancel," "Unsubscribe," or "End subscription" option. If you cannot find cancellation options, contact customer service directly or follow their recommended procedures, which may include phone calls or in-person visits for certain services like gyms.
For subscriptions billed through platforms like Apple or Google Play, follow the respective platform’s cancellation procedures. For instance, Apple subscriptions can be cancelled via the App Store account settings or Apple’s website.
By systematically auditing, evaluating, and cancelling unneeded subscriptions, you can prevent "subscription creep"—the gradual accumulation of forgotten services—and save substantial money annually.
Reclaim Your Money
By cancelling unwanted subscriptions, you can reclaim money that would have otherwise been withdrawn for services you no longer need. For example, an individual was able to reclaim $438.40 of their money.
Grow Your Savings
Avoiding a balance on credit cards can prevent interest payments. Setting up automatic monthly transfers from a bank account to savings can help grow your savings. The average annual percentage yield on a U.S. savings account is 0.57 percent, according to Bankrate's Simple Savings Calculator. If the savings account APY were 4.00 percent, $1,000 would result in $1,040 at the end of a year, a difference of $34.30. Investing $1,000 in a savings account at 0.57 percent APY would result in $1,005.70 at the end of a year.
Prevent Impulse Buys
To prevent impulse buys, consider writing checks instead of using cards for grocery store purchases. This creates friction and prevents impulse buying. Receiving an email reminder from a cancelled company feels rewarding as it signifies saved money.
In conclusion, by auditing your subscriptions, evaluating their necessity, and cancelling the unwanted ones, you can save a substantial amount of money annually. This, in turn, can help you grow your savings and prevent unnecessary debt.
- Regularly review your bank and credit card statements, emails, and consider using budgeting or subscription-tracking apps like Rocket Money to find and manage recurring subscriptions, as they can help save a significant amount of money on personal-finance budgeting.
- By cancelling unwanted subscriptions, you not only save money, but also prevent the accumulation of unnecessary expenses, commonly known as "subscription creep", ultimately helping you reclaim money and grow your savings.
