Financial Fact: How to Conduct a Subscription Audit

By Brian K. Haynes, CRPC^®, MMBB Senior Benefits/Employer Specialist

What’s in This Article:

What’s a subscription audit
How to conduct one:
- Review and gather active subscriptions
- Evaluate and categorize each membership
- Cancel or pause nonessential subscriptions
- Explore alternative solutions
- Set reminders for renewal and autopay

Have you ever gone through your bank account statements and found a subscription you had forgotten? Maybe it's a streaming service you haven’t used since your favorite show ended or a free subscription service that you forgot to cancel just before the paid charges began. Today, many companies offer a subscription-based service, from streaming and software services to meal kits and wellness boxes. Subscriptions have become a leading business model in ecommerce, valued at around $492 billion in 2023, and the average American consumer subscribes to about four services.

The cost of these services can be easy to overlook, and without regular auditing, you might be spending far more than you intended on services you no longer use.

Subscription auditing is identifying and reviewing all monthly paid subscriptions, canceling those that are no longer needed and only paying for what truly adds value. A $25 monthly charge becomes $300 a year, in addition to other subscriptions that can bring your total membership fees to a lot more.

Here are a few ways to successfully audit your subscriptions:

Review and gather active subscriptions by checking your account statements from the last six months, your email for subscription confirmations and app store subscriptions such as the Apple and Google Play store.
Many financial institution apps offer subscription management within the application making it easier to track recurring charges with the anticipated date and amount.
Evaluate each subscription by categorizing them based on the must-have essentials. These may include gym memberships, prescription deliveries or even cloud storage. Next consider valued subscriptions, these may include streaming services you enjoy, and feel are worth the cost. Finally, you can identify the non-essentials, things that are rarely used or that you can live without. Ask yourself, do I use this weekly?
Cancel or pause your subscriptions as needed for those that are nonessential. Also be sure to check if there are lower cost plans available. Reassess periodically so you keep your subscriptions aligned with what you truly need.
Explore alternative solutions, such as bundling options or switching to annual plans which often cost less per month than paying monthly. Look for free or lower cost alternatives that are more cost effective but meet your needs.
Set reminders for renewals and autopay to ensure you’re financially prepared each month and decide if you’ll still need the service.

It’s also beneficial to set reminders for occasional audits moving forward to reinforce the habit and track your overall spending. There are third party applications and services designed to help you budget and audit your accounts; however, most of these charge a fee. Evaluate whether the cost of a service is justified by the value it brings to your financial goals as well as hobbies or social interests.

By applying these steps you’ll be equipped to handle your financial obligations confidently. Remember staying aware and intentional is the key to achieving long-term financial peace of mind.

Footnotes:

Subscription Economy Market Size | Industry Report, 2033

The 30-Minute Subscription Audit That Could Save You Hundreds | Kiplinger