Start the year off right by saving money: It's time to renegotiate your bills in 2025

Subscription services: Hidden costs that add up

Subscription costs are a common source of financial leakage. To reduce cost creep, review your annual and monthly subscriptions regularly — at least, once per year. To help, here’s a list of common subscription services and a breakdown of their costs.

Streaming media subscriptions

Netflix:

• Standard with Ads: $5.99/month
• Standard: $16.49/month
• Premium: $20.99/month

Disney Plus:

• Standard with Ads: $7.99/month
• Standard: $11.99/month or $119.99/year
• Premium: $14.99/month or $149.99/year

Spotify:

• Individual: $12.69/month
• Student: $6.39/month
• Duo (two accounts): $17.89/month
• Family (up to six accounts): $20.99/month

Amazon Prime:

• $9.99/month or $99/year

Gaming subscriptions

For gamers, subscription fees are also increasing:

• PlayStation Plus: $11.99 to $21.99/month
• Xbox Game Pass: $11.99 to $16.99/month
• Nintendo Switch Online: $24.99 to $99.99/year

Digital news and apps

Staying informed and entertained also comes at a cost:

• Digital News: $26.99/month (e.g., The Globe and Mail)
• Peloton App: $16.99/month
• Headspace: $89.99/year
• Calm: $79.99/year

Cutting unnecessary apps or switching to free alternatives like Khan Academy Kids for children can save you hundreds annually, particularly if the apps are not used regularly. If you don't want to cancel, switch from the monthly fee to the annual, if that's an option. Monthly fees are made to look affordable, but the annual fee is often cheaper than paying month by month.

An average family spends hundreds of dollars annually on subscriptions. To curb costs:

• Cancel unused subscriptions
• Opt for annual billing to save on monthly fees

Pro Tip: Look for bundles that combine services (e.g., phone, internet, and streaming platforms). Use family or group plans to share costs with others.

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Strategies for other major bills

Wireless and internet bills

Believe it or not, bluffing sometimes works when it comes to reducing your home internet subscription service costs.

Since many people won’t want to go through the hassle of switching their services to save money, bluffing is a great alternative. To bluff, simply call your current provider and threaten to leave unless offered a better deal.

Oddly enough, many service providers won’t even attempt to retain your business as they’ll assume you’re bluffing and you won’t make the switch. However, if you set a firm cancellation date, your service provider might take you seriously.

They likely won’t offer you anything on the spot, but you might get a call a week before your cancellation date to see if they can win back your business. If the offer made is good, take it. If not, you could just cancel your cancellation date with no interruption to your service.

Pro Tip: Providers like TekSavvy or Koodo can offer competitive pricing. Call your provider to negotiate lower rates or switch to alternative providers to save up to 20%.

Don’t be afraid to switch banks

Bank fees are another thing that needs close monitoring as they can add up. Generally speaking, the major banks will charge $10 to $30 a month for chequing accounts. Although this fee can be reduced if you maintain a minimum balance or have multiple products, not everyone can meet those requirements.

Read More: Here's a step-by-step guide on how to switch banks

Switching to a credit union can be advantageous because you’ll get the same services as a traditional bank, but your monthly fees will be around $5 to $15. Alternatively, you could switch to an online bank where you’ll pay no monthly fees at all. While digital banks may not have brick-and-mortar locations, they typically offer higher interest rates.

For many people, switching their banking information is a pain since they’ll likely need to change their direct deposit and automatic bill payment information. However, many banks give you a financial incentive, such as cash, an increased interest rate, or even gifts such as tablets to make the change. Some of these offers can make it worth it to make the switch.

Pro Tip: Switching to online banks or credit unions can save $5 to $30 per month. Look for sign-up bonuses and higher interest rates.

Check your insurance policies

Instead of automatically renewing your insurance policies every year, you’ll want to shop around to see if any better offers are available.

Online insurance brokers, such as YouSet, allow you to quickly compare dozens of home and auto insurance providers to help you determine which provider has the lowest price. Alternatively, you could enlist the services of an insurance broker to shop around for you.

Insurance providers are constantly adjusting their underwriting policies. So, even though you may have the cheapest rate from a provider one year, they may no longer have the best prices when it’s time for you to renew.

You’ll also want to double-check the policy details to ensure that you’re not paying for anything you don’t need.

As an example, when I first purchased liability insurance, I accepted all the terms that came with the policy without much thought. When it came time to renew, I read the details and realized I didn’t need commercial general liability insurance. By removing this policy, it saved me $300 a year.

Pro Tip: Use comparison tools like rates.ca to find cheaper home or auto insurance. Adjust your policy to remove unnecessary coverages.

Proactive management saves money

Accepting your regular payments without shopping around is never a good idea. Instead, get into a routine of checking your bills annually so you can renegotiate or cancel services as needed.

Monthly charges don’t seem like a lot, but when you add everything up, you may be shocked at how much you’re paying.

Regularly reviewing your bills, consolidating subscriptions, and negotiating with service providers can significantly cut costs. It’s time to take control of your financial future in 2025.

— with files from Romana King