Pros and Cons of Cutting the Cord

We are rapidly nearing the end of 2016 and a lot has transpired for me and my family this year! My wife and I decided in February that we had outgrown our home with our 2 kids and it was time for a change. As we listed our house and bought a new home, it opened the door to us reviewing a lot of our monthly expenses. A bigger home usually leads to higher utility costs, but the one thing that really got us talking was our cable service.

Both cable and internet streaming have their pros and cons. Perhaps you really only have time to sit down and watch cable TV one to two days per week. Despite your viewing, you are still paying to have that cable 7 days a week. Perhaps you may want to consider an alternative; internet streaming alone is substantially cheaper and contains many shows and movies that can arguably keep you busy until you get sick of looking at a TV. On the other hand, there are still many channels and programs that just aren’t available on internet streaming yet. Live sports, local and cable news to name a few. The industry is constantly evolving, so fingers crossed we will see these options in the near future. It ultimately comes down to what you want to prioritize within your spending. After reviewing many folks’ spending plans over the last 6 years, the cost for cable and internet packages usually range from $130 to $150 per month. Depending on the service and amount of channels you want you could find yourself spending as much as $250 per month for cable and internet service. If you buy into the “Faster internet” and “More channels is better” mentalities then expect it to come at a cost. I know from personal experience and reviewing others spending plans that the average streaming service is approximately $10 per month per service. Sounds cheap right? Don’t forget that to use streaming services you first need a device that supports the streaming service & WiFi/internet in your home. You can find a device for $40-$50 & WiFi (or an internet connect at the very least) can range between $30 to $50 or more per month. With the internet cost and the streaming cost you are most likely looking at a minimum of $50 per month.

Depending on what you prioritize in this part of your spending plan and the circumstances, there could monthly savings of potentially $200 per month which is equal to $2,400 per year if you make a change. Everyone’s situation and priorities are different. There is no right or wrong here. There are only dollars and cents. What can you afford? On what should you consider cutting back? Either way, happy viewing… or streaming!

 

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