When we talk about personal finance, cash flow, and budgets, few things tend to creep up on people like their subscription spending. If that sounds familiar, you’re not alone! In the last several years, many “one-time” expenses have pivoted to a subscription model, while the cost of many subscription services has simultaneously increased. Getting proactive about subscriptions could help you find extra money in your budget to boost your retirement savings or advance your other financial goals.
The subscription landscape
Subscriptions have ballooned, thanks in large part to the Netflix model, as well as the proliferation of software as a service (SAAS). To put it in perspective, in 2003 (its first full year as a publicly traded company), Netflix took in about $273 million in revenue from subscriptions, in the form of mail-order DVDs. In 2025, their streaming revenue was more than $45 billion. At the end of 2010, Netflix began offering standalone streaming—the subscription cost $7.99 per month with no ads. In 2026, an ad-free subscription starts at $19.99.
It’s not just that the price of a subscription has outpaced inflation; many of us subscribe to more than one streaming service. At one time, switching to streaming services was considered an alternative to cable TV. Now, we frequently see clients with cable TV and multiple subscriptions. Many may not realize just how much they’re paying for these services, given that price hikes tend to come in an email update. You aren’t required to confirm the increase or re-opt-in, your bill just goes up.
Subscriptions aren’t exclusive to entertainment, either. The rise of “smart” technology means more of our appliances come with software, and these days software tends to require an ongoing subscription, (versus a one-time license that you’d buy and renew every few years.
That could mean your refrigerator, air conditioner, washing machine, car, and more may start to feature subscription options. For instance, depending on the model, your new car may charge you a monthly fee to enable remote start, hands-free driving, or even heated seats.
Planning for subscription costs
For many of us, these add-ons may well be worth the cost. The challenge is knowing what you’re spending and planning accordingly, and this is where subscriptions can be challenging.
- Exercise caution with free trials. Many providers will offer you a free trial, but require credit card details to take advantage, so they can begin charging you when the free trial ends. You may know to look out for that, but what can be less obvious are add-on perks: You purchase one thing, and they offer you a free trial as a bonus offer. In these instances, you may not be asked for credit card information, because it was captured as part of the initial transactions. It’s not always obvious that you’ll opt-in to payments at a future date. Make sure that you understand the terms of any free trial, specifically any future monthly costs you may incur.
- Audit your statements. According to a recent survey by C+R Research, people estimate they spend about $89 a month on subscriptions; in reality, they spend an average of $219. Sometimes, the only way to know you’re being charged repeatedly is to check. Start with your credit and debit card statements, and then make sure you also look at the “subscription” feature on your smartphone, as well. If you’re married, do this as a couple to ensure you aren’t accidentally doubling up your subscription payments if you have separate accounts. You may also spot opportunities to save by using family-plan models. It’s a good idea to do this at least once a year. If you want to be more proactive about this, there are several online services that can help.
- Take the time to cancel unwanted subscriptions. This can be easier said than done. You’re often required to know how you signed up for the services (did you use an email, did you purchase it through an app like Facebook, and so on) as well as passwords and other details. Beyond that, companies don’t always make it easy to cancel, because they want you to stay subscribed. However, setting aside a few hours to work through this task can pay off in the long run as these expenses tend to accumulate.
Taking a mindful approach to spending can be the first step in good financial habits. Don’t stop there! If you want to fully optimize your budget or gut check that your finances are on track to help you reach your goals, working with a financial advisor can help. If you want help building a holistic financial plan for your family, reach out today.