We, as Americans, are addicted to screens. Many turn on their TV when they get home and don’t turn it off until they go to bed, or worse. Not only does the TV keep you from being productive, the cost in dollars also adds up. Should you get rid of your Cable TV?
About 2 years ago my wife and I finally made the plunge we had been talking about for months but never pulled the trigger. We walked into Spectrum and handed in our cable box. It was liberating. Then we received the next bill from Spectrum. $100 cheaper than the month before. That is when I knew we made the right decision. $100 in our pockets every single month. All to not have the time sucking cable box in our house.
An American Addiction
Per a study done by Nielsen, the average time spent by an American adult watching live TV in the 3rd Quarter of 2018 was 3 hours and 44 minutes a day. That is 1,362.67 hours in a year, or almost 57 days. That is pure insanity. Just think about those wasted hours! That is an addiction in my book. Something you do over 15% of the year that adds very limited value to your life. Luckily, it appears the amount of live TV watched has been decreasing over the last 5+ years. I do not know if the number above includes steaming services such as Netflix, but if it doesn’t than you can be sure that is why live TV time has been decreasing. You can bet that steaming services are taking the time away, not something more productive.
Should You Get Rid of Cable?
Cable TV is not a necessity. You may feel like it is, but I am here to tell you it is most definitely not. The more time you watch TV, the more time you waste that you could be growing yourself. Especially due to most of the programs that are on TV. Sure, there are some programs that will help you grow in life, but lets be honest with ourselves, are we really watching those? Or are we watching the latest sitcoms to just “pass the time”?
While I am a financial blog, there is a lot more to the Cable TV analysis than just money. Every second you watch a TV show you aren’t doing something that betters yourself. I know I have wasted countless hours when I could be doing something productive. Reading a book. Writing a blog. Learning how to plan an instrument. There are so many things you could do that can improve your life that watching too much TV prevents.
How about your relationships? I bet TV gets in the way there too. I know that my wife and I would just sit in front of the TV at nights instead of really spending quality time together. The TV started to take the place of actual conversation. That is not good. You need to have a relationship with your spouse, not your TV. I promise that if you get rid of your cable, your relationship will go to a whole new level!
What About The Cash?
Cash is king. And $100 more in you bank account every month adds up fast. We have talked about compounding many times before but lets take a look again to keep hammering home the idea. Instead of having cable, you invest that $100 a month into an index fund and receive an average return of 7%. Let’s see what happens!
The numbers speak for themselves. After 30 years of investing only $100 a month you would have $122,709. That is with a total investment of $36,000. And that adds another point. Cable costs $36,000 over 30 years. That is with no price increase! You know the cost will continue to go up. That is crazy money. Is it worth it? I don’t think so. Not with everything we have talked about so far along with the savings you will have and investment earnings you could make.
What Do We Do?
Cutting cable was freeing. That $100 a month really helps keep the budget in check and gives us room to do things that we want to do. But of course, we still have TVs in our house and watch our favorite shows. Currently, we have both Netflix and Amazon Prime, which have a total cost right around $25 a month and includes the free shipping through Amazon which probably saves us at least that $25. We had these before we got rid of cable and found we were watching Netflix more than cable anyway which helped with our decision.
There are things I miss. I am a big New York Yankee and Buffalo Bill fan. I can’t just turn on a game when I get home from work anymore. Luckily, I can just look at my phone for instant updates on any game and will go over to my Dad’s house to watch the Bill’s games on Sundays. To me, sports are not a reason to spend that money every month to make sure I can watch them. There are plenty of other avenues you can take to get the games if you want to. I would rather keep the cash in my pocket.
What Should You Do?
If I were you, I would cut the cord as soon as possible. Get out from under that expensive monthly bill and be free! Cable is not a necessity. You do not need to make sure you “catch up” on your favorite shows. Plus, they will probably release them on your favorite streaming service or the seasons will come out on video anyway so you can save money by just buying it when it comes out. No big deal. We are talking about your financial future here! Take the first step towards having control of your life and get rid of your cable now!