Subscription creep is the slow build-up of small monthly charges you barely notice, and right now it could be costing your household hundreds of dollars a year.
With the cost of living still squeezing Kiwi budgets, checking exactly what you pay for each month is one of the quickest wins available.
What is subscription creep?
Subscription creep refers to the gradual increase in the number of subscriptions or recurring payments that a consumer has over time, and in particular with streaming services, software charges or memberships. This often leads to higher than expected expenses and in extreme cases to budget strain.
It starts innocently enough…. a free trial here, a bundled “deal” there, a streaming service signed up for one show you finished months ago. Each charge feels too small to worry about but when added together, they become what Stuff recently described as a quiet leak in your account.
The numbers back this up!
In a recent article about subscription creep the Westpac data reported by Stuff shows around 15% of its customers paying for TV subscriptions now have three or more, up from 9% over the same period a year earlier. That’s only of the TV. Add music streaming, food delivery memberships, cloud storage, apps and the gym, and the total climbs fast.
Why small charges matter more than ever.
A $15 monthly subscription doesn’t sound like much, but it’s $180 a year. Five services at that price is $900 a year, money that could go towards groceries, the power bill or your first home deposit. When every dollar counts, paying for things you rarely use is money quietly walking out the door.
There’s a psychological trap too. Many services come bundled together, and because we’re told we’re getting a discount, we hang on to them. But a deal is only a deal if you actually use it. If you watch a service once or twice a year, it’s worth asking whether it’s really worth what you pay for it over twelve months.
Does this sound familiar?
Our Five Top Tips to Reduce Subscription Creep
Whether you are saving to buy your first home, or working to pay off the mortgage faster – we’re sure that any ideas that might help you save a few dollars will be a real help.
Even if you know that you have subscription creep happening and already know what you need to so, it’s often just a reminder that we need to make us get onto things.
Soi here are five things every Kiwi should do today:
1. Review your bank and credit card statements
Pull up the last two or three months of statements for every account and credit card you use.
Look for recurring charges, including annual renewals that only show up once a year. Write each one down with its cost and billing date. Many people are surprised by what they find, from forgotten app subscriptions to trials that quietly rolled into paid plans.
2. Decide whether you still need each one
Go through your list and be honest.
When did you last use it? Would you sign up again today at the full price? If the answer is no, cancel it. Keep the services that genuinely add value to your life, and let go of the ones you’re holding on to out of habit.
3. Look for better deals, free options or sharing
For the subscriptions you keep, check whether you’re on the best plan.
Many providers offer cheaper ad-supported tiers, annual plans that cost less than paying monthly, or discounts bundled with your phone or broadband provider. Consider rotating streaming services, subscribing to one for a month or two, then switching. And check whether a family plan with your household or whānau could let you share the cost, within the provider’s terms.
4. Set two review days each year
Subscriptions creep back in, so make reviewing them a habit.
Pick two dates, say one in March and one in September, and put them in your calendar. On each date, repeat steps one to three. It takes less than an hour and can save you hundreds of dollars.
5. Turn your spending into saving with Feijoa
Once you’ve plugged the leak, put your everyday spending to work.
Feijoa is a round-up app that links to your everyday bank account and rounds up each purchase, sending the spare change straight into your KiwiSaver.
Unlike a subscription that takes money out for little return, Feijoa invests while you spend. You choose the pace, rounding up to the nearest dollar or a bigger amounts if you want to save faster.
There’s no lifestyle change and nothing to remember: it’s set and forget. Those small amounts add up and compound over time, helping your KiwiSaver grow faste, whether you’re saving for your first home or retirement.
And yes there is an incentive to get started too – sign up via our website HERE with the code Kiwi5 and you’ll receive a free $5 contribution into your KiwiSaver after 30 days of active use.
Plug The Leak, Then Make Your Money Work
Subscription creep thrives on inattention. The good news is that fixing it is simple: find out what you’re paying for, cut what you don’t use, get a better deal on what you keep, and check again every six months. Then take it one step further by letting your everyday spending build your KiwiSaver with Feijoa.
Set aside half an hour this week, grab your statements and a cuppa, and see how much you could save. Your future self will thank you.
