It is so easy to click on something on your phone and buy it immediately but it is difficult to keep track of this kind of spending.
Do you know how much you really spend every month buying online and on apps? It is an important question because if you do not keep track of this kind of spending you can mess up your finances and your budget will not be worth the paper you wrote it on.
Christiaan Coetzee, CEO of FinFix, says as the digital economy continues to grow and consumers use an app for everything, from ordering food and groceries to online shopping and entertainment through streaming and gaming apps, it is becoming increasingly important for consumers to sit down with a copy of their monthly bank statements and calculate how much they spend on subscription expenses and online purchases.
He warns that in addition, these expenses will increase even more soon after the announcement of the proposed VAT increase of 0.5% in 2025 with an additional 0.5% increase in 2026.
“Not only will costs increase on the most essential monthly expenses such as fuel, electricity and food, but also on every item you buy, as well as utilisation and online subscription you are signed up for, adding to the already mounting pressure on consumers.”
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Easy steps to track how much you spend online
However, Coetzee says, there are some easy steps to follow to know how much you spend online. “There are several easy, yet crucial proactive steps consumers could and should take to safeguard their financial future. Avoiding unnecessary debt, maintaining a budget and prioritising essential expenses are key strategies to remain financially resilient.”
He says, “while consumers are aware of larger monthly expenses, such as vehicle repayments, mortgages and school fees, many consumers rarely take note of their monthly online subscription and app expenses. The convenience of ordering groceries and take-away foods online and have it delivered to your door has some unintended consequences.
“Many consumers, while somewhat keeping track of their grocery and food bills, tend to spend more than what their budget allows on ordering in.”
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Streaming services and gaming are the big culprits
He says the same goes for online shopping of various items, but it is entertainment through streaming and gaming services, as well as apps bought on Google Play and iStore that amount to hundreds of rands that consumers were not even aware of. This also includes in-app or in-game purchases over and above a monthly subscription fee.
“Checking your bank statement and going through your Google Play and iStore billing statements will surprise you when you see how much you actually spend and you will realise you are billed for apps and services you have not used for ages but never cancelled.
“In most cases, it is quite easy to cancel and you can save a lot of money yearly if you do this wisely. In cases where families have multiple subscriptions for the same service, we remind consumers of the family packages that many app subscriptions have on offer that could save consumers substantial amounts of money.”
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Knowledge key to financial freedom
Coetzee points out that knowledge is the key to your financial freedom. “Consumers forget that online and digital subscription services add up quite quickly and spending roughly R500 a month on unwanted or forgotten subscriptions amounts to R6 000 a year.
“These funds could be much better used on the likes of an emergency or ‘rainy day’ fund, investments for retirement or to pay off existing debt. While this example is on the low end, consumers can save thousands of rands monthly by getting rid of small or unwanted expenses.”
He says it is not only subscriptions. “Other small expenses pile on as well. Small holes sink big ships and if you set aside one evening a month to monitor your expenses and budget for the upcoming month, you will change your spending behaviour and ultimately save money.”
