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Password sharing is over. Here's what it means for your budget.

·3 min read

Gone are the days of you, your parents, your brother (who lives across the country) and your ex-roommate sharing the same streaming account. Streaming services are increasingly cracking down on password sharing outside your household, implementing extra fees to stay connected or requiring an entirely new account.

Whether you’re binging your favorite shows or listening to an audiobook, subscription services now make up a larger portion of household budgets. Here are some tips to manage your subscription expenses.

Check your list

Before you set your subscription budget, you’ll want to evaluate all your current services. Make a complete list of your current subscriptions (or find a tool that identifies them for you), then assess how often you use each one and how much you get from them. For example, if you signed up for one service just to watch the latest season of a popular series and haven’t used it in a while, maybe that service can go.

Read more: An Ally Bank Spending Account can help get your budget on track.

Explore your options

As you assess, don’t forget to look for alternative, more cost-effective options. You might consider:

  • Free or lower-cost streaming services (for instance, by opting for an ad-supported package or finding a free TV service)

  • Resources from your public library, such as streaming service passes or audiobooks and e-books available to borrow

Make subscriptions part of your budget

Just like setting a spending target for groceries or dining out, subscription services should also be part of your regular budget. Based on your spending goals and budgeting style, you can determine how much money you want to put toward subscriptions — and then limit your subscriptions to that amount.

Just like setting a spending target for groceries or dining out, subscription services should also be part of your regular budget.

Financial management apps and other tools make it easier to keep track of your subscription expenses. Tools like spending buckets in an Ally Bank Spending Account can help you organize and allocate money for these recurring expenses.

Tip: Stay prepared for higher-cost, annual renewals with the help of savings buckets in an Ally Bank Savings Account.

How to save on streaming costs

While streaming services might be closing the door on account sharing, you still have plenty of opportunities to save:

Try before you buy

Many subscription services include a free trial before your first bill, so take advantage of the offer and see if you like it before committing. Don’t be afraid to cancel if your service doesn’t have content you want right now — you can always sign up again when it's updated, or you can rotate through the services you subscribe to.

Tip: Set an alert on your phone, so you don’t forget to cancel the service at the end of the trial period.

Look for applicable discounts

Before signing up, check for relevant discounts, such as student, military and senior discounts, or seasonal promotions and deals.

Bundle up

Bundling subscriptions together can save you money on multiple services. Many service providers provide an incentive to sign up for more than one subscription by cutting the cost of your overall bill. If only one service interests you, don’t fall into the trap of thinking the bundle will save you money.

Group where you can

With platforms cracking down on password sharing policies, many are offering group discounts and family plans, and you're still able to share an account with anyone within your direct household.

Negotiate with service providers

Sometimes, the sticker price isn’t the only price on offer. Consider contacting customer service for potential discounts, or explore retention offers that might pop up when canceling.

Don’t set it and forget it

Budgeting isn’t a one-time thing. Make a point to periodically reassess your subscriptions and make any changes based on your current needs and content preferences. Pay attention to emails and notifications from your service providers about any upcoming changes to your account that might affect your bill. You might also be able to get a head start on potential price increases by following industry news.

Stream on

If you want to watch your favorite comfort shows without worrying about the cost, all it takes is some planning ahead. By building your budget, you can avoid sticker shock from password sharing lockdowns and make streaming stress-free.

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