In today’s digital age, Australians are finding themselves increasingly entangled in the web of subscription-based services. From the allure of endless streaming options to the convenience of meal kits delivered right to your door, it’s no wonder that the subscription economy is booming. However, the convenience of these services comes at a cost, and it’s quietly chipping away at household budgets across the country.
According to a recent report by Finder, a staggering 79 per cent of Australians are signed up for at least one subscription service. While these services offer a range of entertainment and lifestyle benefits, they also come with a price tag that can quickly add up. On average, Australian households are spending a hefty $540 annually on streaming services alone. And when you factor in the premium, ad-free options, along with music and sports subscriptions, this figure can balloon to an eye-watering $1700 per year.
Rebecca Pike, Finder’s money expert, warns of the insidious nature of these seemingly small costs. ‘It’s really easy to sign up, watch some things, and then kind of have subscriptions there in the background,’ Pike explained. The problem is that many Australians may not even realise how infrequently they use certain services, or how these costs can accumulate over time.
Moreover, most streaming services have hiked their prices in recent years, with some increasing their monthly fees by $5 or $6. This incremental rise can place a significant burden on household finances, especially at a time when many are feeling the pinch of economic uncertainty.
This is where the advice of Andrew Woodward, a wealth coach from The Investor’s Way, comes into play. Woodward advocates for a ‘subscription audit,’ a simple yet effective strategy to regain control of your monthly expenses. He suggests that Australians should take the time to sit down and critically evaluate all their active subscriptions, keeping only those that are essential. ‘Be brutal! Reduce your costs and relieve some of that cost of living pressure,’ he advises.
To assist with this process, Woodward offers a free online tool designed to help people organise and assess their monthly spending. By using such tools, Australians can make informed decisions about which subscriptions to keep and which to cancel.
While it may be tempting to keep up with the latest subscription trends, taking a hard look at your spending habits can lead to significant savings. The key to successfully navigating this ‘subscriber society’ is mindful spending. It’s about understanding the difference between what you want and what you truly value.
Have you come across any subscriptions that turned out to be less valuable than expected? Or have you found smart ways to enjoy your favourite services without overspending? Let’s share tips and help each other make the most of our subscriptions in today’s fast-paced digital world.
Also read: Tricks companies use to make it hard to cancel subscriptions
