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Paying for monthly subscriptions has become a regular part of life, and many households use several subscription services. While these services may be affordable, they can add up quickly. If you're not careful, you may spend more than you've budgeted for these costs. It turns out that Americans spend $133 more than they realize on subscription services.
Subscription services make our lives easier. We can make sure that we don't run out of essential products and try new services that could simplify our lives.
Streaming apps, clothing and toiletry subscription services, pet food delivery, and meal delivery services are some popular subscription services you may use.
While these services are convenient, they come at a cost. If you use multiple subscription services, it can get expensive.
When was the last time you calculated how much you spent on subscription fees? Like many other Americans, you may be paying more money than you realize, impacting your financial situation.
Americans spend $133 more than they realize on subscription services
A C+R Research survey found that Americans underestimate how much money they spend on subscription services. Respondents were given 10 seconds to estimate how much money they spent on subscriptions.
On average, survey respondents estimated spending $86 monthly on subscription fees. It turns out that, on average, Americans spend $219 monthly. That's $133 more than most people realized. Also, 74% of respondents noted that it was easy to forget about recurring monthly subscription services costs.
It's easy to see why it's hard to estimate how much we spend on these expenses. As we begin to use more subscription services, it can be challenging to keep track of them all and their costs.
Now is an excellent time to sit down and figure out how much you're spending on subscription services. Does what you're spending fit your budget and your financial goals? If not, it may be time to make some changes.
Tips to keep your subscription service spending under control
So, what can you do to keep your spending under control? For starters, it's a good idea to set and follow a budget. This way, you're not spending more than you can afford. You can use one of the top budgeting apps to see where your money is going and set spending limits.
It's also a good idea to make a list of your current subscription services and figure out which ones you use and which you don't. If you can pause or cancel the ones you're not using, that could help you keep more money in your bank account.
Another option is to use some of your subscription services less often. For example, it may make sense to use some quarterly instead of monthly.
Finally, you may want to consider sharing subscription services like streaming apps. Some brands offer shared memberships that could help you trim your spending. This solution is a win-win for family members or roommates because everyone can save money.
Monitoring your spending habits is essential. The more aware you are of how much you're spending and where your money is going, the easier it will be to make adjustments that could help you reach your personal finance goals sooner.
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