Save more by adopting a 'cancel everything' mindset

The Power of Canceling Unwanted Subscriptions

For a long time, I believed that saving money was all about willpower. It meant cutting back on expenses, staying disciplined, and sticking to a strict budget. However, my perspective changed when I started working at a bank and began paying closer attention to my bank statements. I noticed numerous small transactions that were being deducted from my account for services I rarely or never used.

One such example was a plant identification app that cost $7.99 per month. My wife and I had intended to try it for a short period for our garden, but we forgot to cancel it. Another was a free trial on a streaming service that automatically converted into a monthly subscription of $7.99. These charges were often hidden in the form of cryptic descriptions, making it difficult to identify them on my statement. Alongside these, there was also a gym membership we hadn’t used since having a baby a year ago.

This realization made me want to cut back and start saving more. I could either rely on self-control by creating a strict budget and avoiding things like ice cream on Sunday nights — which didn’t sound very motivating — or I could take a different approach. I decided to audit my bank statements for those hidden deductions, cancel any unwanted subscriptions, and set up my finances in a way that would prevent me from losing track of these expenses. This allowed me to enjoy my favorite treats while still boosting my savings.

A 'Cancel Everything' Mindset

At first, the idea of canceling everything sounded extreme. But I quickly realized that not everyone wanted to cancel all their subscriptions. We kept essential services like internet, electricity, and medical bills, as these were already tied to our mortgage payments. Instead, we went through our statements at the beginning of the year, identified any transactions that weren’t groceries, rent, or utilities, and if we could figure out what they were, we went to the provider’s website and canceled them.

Nothing felt better than receiving an email from a canceled company, knowing that I had saved $7.99 a month, multiplied by 12 months. Using this method helped build momentum. For subscriptions where I thought “maybe I’ll use it,” I asked myself, “Can I go without it? How often did I actually use it last year? Did it improve my life, or could I have gotten a similar service for free?” Often, I found that I had already watched everything I wanted on a streaming service. Why keep paying for it when I spent more time scrolling through titles I didn’t want to watch than actually watching shows?

Annual Review and Small Efforts

We now do this annually. The small effort doesn’t require a new budget or major spending cuts, provided you focus on services you don’t use, use minimally, or can replace with free alternatives. You miss little, and you end up with extra money for your savings.

For example, we had small children and used a grocery delivery service, but then a local store opened nearby. That saved us $99 a year, plus the service added extra fees. GoDaddy sent a message reminding us that two domains we bought a year earlier needed renewal, another $40 saved. We also added three channels to our Amazon account for $2.99 each month.

Based on these examples, we’ve reclaimed $438.40 that would have otherwise been lost to unnecessary subscriptions. If you do this in January, you’re well on your way to becoming part of the 25 percent of Americans who have no savings.

Friction as a Tool for Saving

Another trick is to introduce friction into your spending habits. If your card expires or needs to be replaced, consider requesting a new card number. You can also delay reactivating it so long as it won’t cause financial harm. Friction can help you save more, even outside of canceling subscriptions.

For instance, using checks instead of cards can make you think twice before making impulse purchases. Writing checks forces you to look at your expenses as “out of pocket” spending rather than easy credit. Similarly, using debit cards makes it easier to spend money you have on things you don’t need. Without a card ready, you might reconsider an impulsive buy.

Credit card transactions also accumulate into balances that come with high interest rates, typically between 17.24% and 29.24%. Avoiding a balance means avoiding interest, and the money you save can go directly into your savings account.

Automating Savings for Long-Term Growth

As companies used automatic payments to withdraw money from my account, I decided to use the same tools to add money to my savings. When I stopped renewing a subscription after changing my card number, I simply set up an automatic monthly transfer to my savings account for the same amount and on the same date.

Once you do this for a year or more, you’ll see how much your savings can grow. Visit your bank’s online portal and review your automatic transfers. You’ll likely be amazed by how much money you’ve saved over time.

If you manage to save $1,000 in a year and invest it in a savings account with a 0.57% annual percentage yield, you’ll only earn $5.70 in interest. However, if the rate is higher, say 4.00%, you’ll earn $40 in interest. This shows the importance of finding the right savings account to maximize your returns.

Building Smart Financial Habits

Finally, consider splitting your paycheck between multiple accounts, such as checking and savings. This ensures that every time you get paid, a portion of your income goes straight into savings. This simple habit can help you build a stronger financial foundation over time.

In the end, saving isn’t just about willpower. It’s about being proactive, identifying hidden costs, and taking control of your finances. By canceling unnecessary subscriptions, introducing friction into your spending, and automating savings, you can create lasting financial progress.