As more of our everyday lives move online, it’s easy to lose track of how much you’re spending on subscriptions for entertainment and other services. One streaming service may seem affordable, but having several monthly charges can quickly turn into a much bigger expense. Economist Dr. Emma Howard explains that subscription services can benefit many companies because they provide a predictable source of income. However, for consumers, those recurring payments can be surprisingly easy to overlook and can really add up, even if you barely use the services. Howard explains that one reason people often keep paying for services they barely use is optimism bias. You might tell yourself you’ll get more value from a gym membership or streaming service next month, even if you hardly used it this month. Family pressure can also make it harder to cut back, particularly when kids or other family members want access to streaming services such as Netflix or Disney+. To keep your spending under control, experts recommend regularly reviewing your subscriptions and canceling anything you no longer use. It can also help to set a calendar reminder to cancel free trials before they become paid subscriptions. A few minutes of checking could help prevent small monthly charges from quietly eating into your budget.
