It has been almost 2 years since I disconnected DirecTV and
the sun still rises in the east and sets in the west.
Back then, my
wife and I only watched about 5 channels of the more than 120 channels the TV
package included.
It was if we were
paying about $15 per channel on TV we actually watched!
But now, the $70/mo something dollar cable
bill is now more like $14/mo considering that we subscribe to Internet TV
content from Netflix and Hulu. So, I’ve
been saving around $60/mo for almost two years now. That is about $1440 so far and I feel like I’ve
given up very little for this savings and certainly don’t miss any of the commercials.
If dropping the cable company and saving around $60 per
month doesn’t excite you, maybe focusing on what this savings can actually buy
you will! For example, let’s say you are
starting a family and want to start saving for a college education for your new
born baby. Take that $60/mo and invest
it into a college fund. This is what it
could look like:
The $720 per year savings only adds up to $12,960 in 18
years. However, by investing it with an
average annual return of 10% combined with the beauty of compounding interest,
the college fund grows to over $36,000 by the time your child reaches 18 years
old.
Or, if you never have children and get married at age 25
investing in this same way over 30 years will earn you over $130,000 by the
time you reach 55. Not a bad chunk of $$$ to help supplement your retirement savings simply by relying on your
Internet connection to be your cable company.
If you need to spend that money, $720 can be an extra
mortgage payment every year or home owner’s insurance. $60/mo can go towards a car payment or
insurance for that car. Need to lose a
few extra pounds? $60/mo buys you a really
nice gym membership and at the same time keeps you off the couch. An extra $20/mo can buy you a speed upgrade
from your ISP and you still save $40 per month.
I don’t need to tell you in today’s economy, the extra $60
per month can go a long way towards other more important things. I’m not suggesting that everyone cut their
cable and go with Internet TV instead.
It is not for everyone at least not yet.
But everyone should know there are other options out there now and there’s
an opportunity cost to every dollar that gets wasted on an excessive cable
bill.
