Here’s How To Save $1500 A Year: Cut Cable TV
It has now been six months since we moved and decided we would not renew our Internet/Cable TV bundle. Our previous Internet/Cable TV bundle came with a steep fee of $165/month.
At the time of moving into our new place we decided it would be more cost-effective to bundle the internet with the same carrier as our mobile device. Bundling the internet and the mobile device plans together. Resulted in the internet service only being $33/month. The Cable TV subscription was replaced with Netflix which has a monthly fee of $9/month.
The total cost of our new setup from is $42/month. Which results in a monthly savings of $123/month or $1476/year.
I will admit that during the next couple weeks while the Stanley Cup playoffs are on I’m sure I will be wishing that I still had cable TV. Although not having cable TV will result in me visiting with friends and family to watch the game. Which always leads to a good time. An if worse comes to worse I’ll have to settle with a little bit lower quality as I stream the game online.
Here are the benefits we have realized after six months of being cable TV free.
– This decision has has made our quality of life much better. Even though we didn’t spend much time to begin with watching TV we even spend less now. The time that was previous spent watching TV has been replaced with walking, gym, biking, and getting stuff done around the house. Long gone are the occasional nights where you sit there and three hours has passed without us realizing how much time just went by.
– Netflix has a lot of great movies and TV shows. I would be willing to bet that a lot of the movies and shows you enjoy are already on Netflix. Sure you will not see them the newest episode as soon as it is released, but as I mentioned you will be doing so many other fun activities with your free time that it will not matter.
– There has been no difference in the quality of the Internet service.
– This decision has surprisingly increased the amount of time we spend with family and friends, as shows or sporting events such as the World Juniors Hockey that we want to see have become a group event at times where we watch them together.
– As mentioned above there are numerous sites online that enable you to stream live sporting events or watch shows a couple hours after they have aired. The quality on streaming the live sporting events is not the best at times which I think is great because if you really want to see it you’ll watch it. If not you’ll most likely get annoyed and resume to doing more productive things. As for the shows that you can watch a couple hours after they have aired I have not experienced any difference in quality the couple times we watched The Walking Dead.
– Who can forget one of the best benefits from getting rid of this bundle. The resulting savings of roughly $1500/year.
The Significance Of Saving $1500/year
This savings is a double edge sword as mentioned in previous posts about reducing expenses. This extra $123/month going into my investment portfolio will increase it’s value and resulting dividend distributions it is able to generate. While at the same time it has reduced the required size of my investment portfolio account by $37,500 ($1500 X 25 = $37,500) and the required passive income required to cover my annual expenses by $1,500/year.
The significance becomes even more profound when you look at the results from investing the $123/month over a ten year period. Investing $123/month over a ten year period with a 7% return on investment will be worth $21,039. Where if you had kept your cable TV bundle you would have spent $15,000 for those services. Which is a difference in net worth of $36,039 after ten years.
There you have it. Those are the benefits I have experienced after going six months and counting of being cable TV free.
I can honestly say I will continue and would do it again as it has been a great experience. Our lives are now filled with much more fulfilling and enjoyable activities then watching TV on a nightly occurrence.
What about you have you thought about going or have went cable TV free? What was your experience like and resulting savings?