Home entertainment budgets used to be easy to calculate. But things have changed and our budget for streaming and tech services has gotten out of hand. Let’s find out why and how to fix it so you can get these pesky fees under control.
Not long ago, you would have one or all of the Big Three: Phone, Cable, & Internet. If you wanted to lower your cable bill you usually had two or three tier options to choose from, so it was rather easy to choose your offering.
As streaming services became more popular, many customers ditched cable and satellite services in order to save money without sacrificing their favorite shows. The power to watch only what you wanted when you wanted was amazing and people became HOOKED on entertainment freedom.
Even if you subscribed to multiple streaming services, you were most likely paying less than cable costs at that time.
Consumers began to “Cut the Cord” as a way to save money while still enjoying their favorite shows. As demand increased, more companies and individual networks began to offer streaming services.
As the streaming field decoupled cable and satellite companies from entertainment networks, subscribing to your favorite shows became more complex. Many shows became exclusive to certain streaming platforms. You may have begun paying for services with other channels that overlapped another service just so you could see your favorite shows. Additionally, networks began producing their own shows. The industry that was dominated by the traditionally free networks ABC, CBS, and NBC, now encountered competition from tech upstarts.
Pretty soon, what was a way to have television entertainment for a low price became more complex than and more expensive.
Evaluate Your Entertainment Needs
So, do you have any idea of all the services you are subscribed to? What are you paying in subscription streaming fees? Can you list them all right now? Did you forget any? Don’t worry, I did when I worked on this.
I KNOW I have two subscriptions through Amazon and I couldn’t tell you what they are. It’s on auto pay and every month I see “Amazon Prime Payments” come through and I tell myself to go figure out what it is and cancel it and then…..the next month comes and I do the same thing. Over and over.
If this sounds like you, then it’s time to take stock of what you are actually paying for.
First, make a list of what services are important to you. If you NEED Netflix, then keep it on your list. If Hulu and Sling have overlapping channels, maybe you don’t need both.
Now that you know what you need, let’s compare what you actually have.
Make A List of Current Services
Make a list of ALL of the streaming subscription services you have and what the monthly cost is. If you pay annually, like with Amazon Prime, divide that by 12 to get the monthly amount. Add them all up and see what your total is.
The challenge here is finding all the services. Some of them may be charged to your Amazon card, which we know is very vague in description. Some may go directly to your checking account and others may be on a different credit card.
Now look at that total and that’s how much money you spend every month on streaming subscription services.
Have a hard time remembering all your subscriptions? Try Rocket Money. I used the free version. You can “choose custom amount” and select zero dollars for their free version. You won’t have access to all the features of a paid account, but you could choose the option for the 7 day free trial (just don’t forget to cancel!).
I linked my banking accounts and was able to see some of the subscription services I have outside of Amazon and when they are due each month.
Television/Movies:
Netflix- $19.99
Amazon Prime- $11.60 (139 annually)
Disney + – $6.70 (80 annually)
Streaming 1- $4.99 (PBS Kids)
Streaming 2- $5.99 (Shudder)
Amazon kids+ – $4.99 (saw I can switch to annual payment of $48/year)
Music:
Pandora- Free Version
Books:
Kindle Unlimited – 9.99
Gaming:
Prodigy- $6.25 (75 annually)
X-Box Game Pass- $5.00 ($60 annually)
Cloud Storage Fees:
Google One 19.99 annually ($1.67 monthly)
Total entertainment streaming subscriptions: $77.17 monthly cost. There’s no magic number to say if your total subscription streaming is “good”. As long as you can afford it and use it then it’s not a waste.
Make Decisions
I love Amazon and I have no plans of getting rid of it anytime soon. The two-day shipping and videos are used quite frequently in my home. Amazon also makes it easy to subscribe to other streaming networks through Prime Video. But, back to my mission to cancel those pesky unused streaming subscriptions.
I logged into my Amazon account and looked under Account & Lists → Memberships & Subscriptions and I could see all my subscriptions I have through Amazon as well as the monthly amount and due date. I even found that I could save money on one subscription by switching to annual payment instead of monthly. Click, click, save!
If you find yourself looking to save money, here are three ways to save on streaming subscriptions if you really don’t want to cancel them.
Share Account
Some streaming subscriptions allow shared accounts, some don’t. Just make sure you follow the rules for each provider. You could split the cost, or if the person is amazingly awesome, they may let you have a log in for free!!!
Pro: saves money. Con: need to know someone willing to share.
Ladder your streaming subscriptions
Instead of paying for one all year long, maybe you pay for it for a couple months, get all your binging of your shows done for the year, and then cancel while subscribing to a different provider for a couple months.
Pro: saves money. Con: You may hear spoilers before you can watch a show.
Bundle subscriptions
Some streaming subscribers, like Disney+ offer bundle deals giving you access to multiple platforms for a discounted price.
Pro: Saves money. Con: You may not use platforms in the bundle.
Start Saving
Saving money on subscriptions and streaming services requires some planning and research. By evaluating your needs, sharing accounts, looking for deals, as well as considering bundled packages and comparing to cable, you can make informed decisions and save money on your entertainment expenses. It’s important to weigh the costs and benefits before making the switch to streaming services to be sure it’s right for you. And for your budget.
Thanks to Karina Moretz, Associate Advisor for this post. Pathfinder Planning LLC is a registered investment advisor in North and South Carolina. We serve young adults and working families by providing personal financial planning and asset management for a simple fee. www.pathfinderplanningllc.com