Cable = Yes, Savings = No? Reasons to cut the cord.
You pay $200 a month for cable and have NO savings! 😟
In today's world of streaming media services, it is sometimes hard to believe that some still rely heavily on cable services and satellite TV. Of course, sports buffs may be hard to convince, but there are other options.
The primary purpose of this post is to get into the heads of those who put nonessential services before creating a safety net for themselves and those they may support.
My goal is not to bash cable but hear me out. If you have reoccurring services/bills for nonessentials, consider how going without (even for a short time) can help you to build up savings/emergency fund.
In today's world of streaming media services, it is sometimes hard to believe that some still rely heavily on cable services and satellite TV. Of course, sports buffs may be hard to convince, but there are other options.
The primary purpose of this post is to get into the heads of those who put nonessential services before creating a safety net for themselves and those they may support.
My goal is not to bash cable but hear me out. If you have reoccurring services/bills for nonessentials, consider how going without (even for a short time) can help you to build up savings/emergency fund.
Examples of Services and Potential Annual Savings:
Service
|
Potential
Annual Savings
|
Note
|
Cable/Satellite
|
$1100+
|
Assuming a bill of between $85 - $100 monthly. Savings
will vary based on the actual amount paid.
|
Satellite Radio/Streaming Radio, Game Streaming, Streaming Video
|
$120 - $250+
|
Not breaking the bank, but more to put towards savings.
|
Monthly Subscriptions
(wine, MAGAZINES, MONTHLY boxes, etc.)
|
$20 - $500+
|
Prices vary based on the services/subscriptions.
|
Beauty (Nails, Hair, Spa)
|
$3000 +
|
Don’t hurt me, ladies. Just cutting back from weekly to
bi-weekly or bi-weekly to monthly could mean great savings over time.
|
Gym Membership
|
$700+
|
Health and Fitness is extremely important and
should not be taken lightly, but if you have little to no savings consider low or no-cost alternatives for a short time to build savings. Fees and savings
will vary.
|
Meal Box Subscriptions
|
$2,000
|
As convenient as they are, these come with a steep price
tag. Consider doing your own grocery shopping and making meals that’ll cost
less per person.
|
Total Potential Annual Savings
|
$5000+
|
actual savings vary
|
What I'm suggesting is a hard honest look at your monthly expenses of nonessential items rather it be entertainment, beauty, and other and determine if there are some opportunities to pause or discontinue these services either temporarily or even permanently. Instead of paying for the services, you'd put the same money you would have been spending into savings and build up your fund. Once you reached a fair number (think in months of expenses and try to save for a set number - 3 months, 6 months, 9 months, 12 months, etc.). Once you've reached your target amount, you may decide to continue one of those services (hopefully not all, but if so, maybe at a lower rate than before).
My Personal Example:
It's been about 5-6 years since I cut the cord. At first, it was hard and I thought I would miss cable. "I need my cable". That day never came and to this day I still do not have cable. Think about the savings! I don't remember the exact amount, but let's just say my cable bill was about $75 a month. In just over 5 years, I may have saved around $4,500 (about $900 a year). Not bad, not bad at all. It sometimes takes looking at the big picture. At first, the amount sounds minimum but look at it over time.
While I did not put this directly into a specific savings account, I have been able to lower my expenses, increase savings, and have more for those rainy days, like when having to purchase 4 new tires! At this point, if I wanted to go back to cable, I've already established a savings and would not feel guilty about indulging. Not that I want to....but if so, I could do so with less stress and with the comfort of knowing I'm not one emergency away from a financial breakdown.
While I did not put this directly into a specific savings account, I have been able to lower my expenses, increase savings, and have more for those rainy days, like when having to purchase 4 new tires! At this point, if I wanted to go back to cable, I've already established a savings and would not feel guilty about indulging. Not that I want to....but if so, I could do so with less stress and with the comfort of knowing I'm not one emergency away from a financial breakdown.
Reducing/Eliminating some monthly bills can help you sleep better knowing:
- you and your family have a safety net;
- you won't have to "rob Peter to pay Paul";
- you do not have to burden friends and family with your financial woes;
- you've done what is in your power to get your financial matters in order.
Just know that you have the power to make a change, no matter how big or how small. Consider the different monthly expenses that are under your control. Work on minimizing those while you build your savings.
You can do it!