He said: We all know the key to retiring early is keeping expenses to a minimum. One of the quickest and easiest ways to do this is by cutting the cord. I’m not talking about abandoning your mothers. I’m talking about getting rid of cable. When S and I sat down to look at our finances we realized the $160 a month cable and internet bill was costing us $1,920 per year. That means 96 hours of my life will be lost at work paying just for the cable bill every year. Over a ten-year period I would spend 40 straight days doing nothing but working to pay for our cable and internet. No thanks! We decided to cut the cord and finally get rid of cable. Instead we opted to use a cheaper internet provider, install an antenna, and subscribe to Netflix.
So how do we like this new change? The antenna provides all of the news channels and Netflix gives us access to most of the shows we would normally watch. Of course we did have to wait a year to catch up because Netflix is always a season behind (a small sacrifice). Our antenna had a one-time cost of $40, our internet costs $40 per month, and Netflix is $8. After the initial $40 investment we are saving $112 every month. This has reduced our cable and internet bill by $13,440 over the next ten years. Another way of looking at this is that I just got 28 days of my life back!
We’ve added the difference to our monthly savings contributions. This will give us an additional $20,176 when it is time to retire in ten years, assuming an 8% rate of return. Talk about a small change leading to a big difference!
She said: When we decided to get rid of cable, it was one of the best days of my life (just behind my wedding day and the birth of my children). I DESPISE Comcast. They’re overpriced, they’re rude when you call, and their service sucks. On the day we cancelled, I begged L to let me make the call. I knew it was going to be so satisfying! It was everything I hoped for, and despite the Comcast man’s attempts at telling me how a new box would make everything great again, I told him we had already made the switch and our decision was final.
Although it felt great to cut the cord, I figured they probably didn’t care about losing us as customers since they had millions of others. However, the past several months we have had Comcast salespeople at our door on a weekly basis, telling us that they have made a lot of changes and revamped their products and their customer service and would like to have us back. I know that they wouldn’t be putting in this much effort if they hadn’t lost a serious amount of business. That means we’re not the only cord cutters around, there are lots of us! Cord cutters unite!
We said: What is even better than the cost savings of cutting cable is the time savings. Don’t get us wrong, we have put in our share of binge watching our faves on Netflix after the kids go to bed (Mad Men, Walking Dead, Dexter). But overall, cutting cable has drastically reduced our TV time and it has been great. We go outside, read more books, have better conversations, get more done around the house, and spend more time enjoying each other rather than sitting next to each other and staring at the TV. We can honestly say we don’t miss (or even remember) all of the other things we used to watch. Whether you have Comcast, DirecTV, Cox, or any other provider, your savings account and quality of life will both increase after you cut the cord.
Total Small Change, Big Difference Savings over 10 years:
$ 7,765 – Monsters
$20,176 – Cutting Cable
$27,941 – Total Savings