When I worked at the bank, one of my least favorite jobs was helping customers dispute charges they didn't recognize. Nine times out of ten, the charge wasn't fraud. It was something they'd signed up for years ago and forgotten about. I'd watch their faces go from angry to embarrassed, and I'd think, that would never be me.
Reader, it was me. Last January I sat down to do our first real bill audit and found a photo storage plan we'd moved away from, a kids' learning app nobody had opened since Rosie was two, and a warranty on a microwave we no longer own.
So now it's a yearly tradition. The last Saturday in January, usually a gray, cold one here in Bucks County, with snow on the ground if we're lucky, I send Mike and the kids sledding at the hill behind the elementary school and spend one afternoon going through every recurring charge we have. This year's was last Saturday. Here's the process.
What you need
- The last three months of statements for every checking account and credit card
- A highlighter (or two colors, if you're fancy)
- A notebook or blank spreadsheet
- Your phone, for checking the app stores' subscription pages
- A pot of coffee and something to snack on
Three months is the key. One month misses quarterly charges. Some things only hit every ninety days, and those are the easiest to forget.
Step 1: Highlight every charge that repeats
Go through each statement and highlight anything that shows up more than once or looks like a subscription. Don't judge anything yet. Just mark it.
Then write every one into a list with four columns: what it is, how much, how often, and which account it comes from. That last column matters more than you'd think. We had two charges hitting a credit card I barely use, which is exactly why I'd missed them.
Don't forget to check the subscription settings on your phone. App subscriptions often show up on a statement under a generic name you won't recognize.
Step 2: Sort into three piles
I sort every line into one of three groups:
- Keep as is. Things we use and are fairly priced.
- Call or shop around. Things we need, but might be paying too much for: phone, internet, insurance, trash pickup.
- Cancel. Things we forgot about, stopped using, or can live without.
A rule that helps me: if I can't remember the last time someone in the family used it, it goes in the cancel pile. If someone objects later, we can sign up again. Nobody has ever objected.
Step 3: Make the calls in the same afternoon
This is where audits usually fall apart. You make the list, you feel productive, and the list sits on the counter until March. I try to cancel and call everything the same day, while I'm in the mood.
For the "shop around" pile, I keep it short and polite when I call. I tell them I'm reviewing our household bills, ask what my current rate is, and ask if there's a lower plan or promotion I qualify for. I don't threaten to leave unless I'm actually prepared to. Sometimes they have something, sometimes they don't. It's still worth the fifteen minutes.
What I found this year
| Item | Monthly before | Result | Monthly savings |
|---|---|---|---|
| Second streaming service | $15.49 | Canceled (we'll rotate it back in summer) | $15.49 |
| Internet | $80.00 | Moved to a slower tier we don't notice | $25.00 |
| Meal-planning app | $14.99 | Canceled; forgot it was still renewing | $14.99 |
| Cloud storage upgrade | $2.99 | Deleted old videos, went back to free tier | $2.99 |
| Kids' magazine subscription | $4.50 | Kept (Owen reads every issue) | $0 |
| Gym membership (mine) | $24.99 | Canceled; I walk with a friend instead | $24.99 |
Add up the last column and that's about $83 a month, right around $1,000 over a year. On one income, that's real money. It's close to what we spend on groceries in three weeks.
What surprised me
The meal-planning app was the most embarrassing. I signed up for it last spring, used it for two weeks, and it had been quietly billing that card I barely use ever since. The phones weren't on this year's list at all; we'd already moved to prepaid back in September.
The gym was the hardest emotionally. I kept it for a year thinking I'd go "once Rosie started preschool." I went four times. Canceling felt like admitting defeat, but paying $25 a month for guilt is a bad deal.
And the internet speed downgrade? Nobody in the family has noticed. I haven't told them.
A few things I do to keep it from creeping back
- Every new subscription goes on one credit card, so they're all in one place.
- Free trials get a phone reminder two days before they end, set the moment I sign up.
- Annual renewals go on the paper calendar in the kitchen.
It's not glamorous, and the kids came home from sledding asking why the kitchen table was covered in highlighted paper. But I'd trade one snowy afternoon for a thousand dollars every January. Next year, I'm bringing better snacks.
