Bad Math,  Saving Money,  Stop Being Broke

Cord Cutting Could Be The Reason Why You’re Poor

Talk to any limp-wristed, skinny armed, millennial and they will tell you the best way to save money is cord-cutting. For those who don’t know, cord-cutting is the act of dropping cable in favor of streaming services.

Cord-cutting is quite possibly the newest tactical trend by Americans to save money. Over 14,000 Americans are cutting their cable contracts and replacing it with Hulu, Netflix, YouTube, Sling, and other subscription streaming services. This trend is becoming so popular even the big networks (CBS, Disney, etc.) are all creating their own streaming service. People who keep cable face increasing rates for their cable packages. Some friends I spoke to the other day happen to be one of those people – their cable package is over $250/month. Americans are beginning to catch on that streaming services are becoming more worth it.  

The problem.

We should never underestimate American’s abilities to not do simple math. How so? The average American $100 dollars on their cable bill each month. The average internet only bill is around $70. Assuming no additional streaming service is added on, the average American household is saving 30 dollars on the monthly bill. 

The average cost of the top 10 streaming service (not including Amazon Prime) in America as of this posting is $25. Based on recent polling, the average American pays for 3 streaming services or $75 a month! Let’s take our calculators out and do the maths per year. :

The Maths.

The only people who stand to gain from having 3 streaming services compared to their current cable package are my friends from earlier. Oh, but Stranger Things and GoT are so worth it! No, they aren’t. Not seeing anything happening in the Battle of Winterfell and Dany going nuts in season 8 are strong indicators that you should stop ( I googled it. Don’t email me). 

If you enjoy wasting $540 bucks a year, then sure, it’s worth your time. If you’re one of the 60% of Americans who have less than $1000 in your bank account, you need to stop. My advice? Think about paring down your streaming services to one or no streaming services or even consider keeping cable.

But Matt! I clicked on this article to learn about cord-cutting, you’re recommending keeping cable? Yes. Cord-cutting has become so popular, that cable companies are making their prices competitive to keep the lights on.

Our Personal Case Study: Choosing The Right Streaming Service
There is no fast and hard rule for choosing your streaming services. You need to figure out what your wants are and do the math for what is the best option. We recently had the choice of choosing cable or streaming services. 

For the longest time, we could not give up the Bachelor franchise and Big Brother. Thankfully, the Bachelor and Big Brother are both on network TV which we can get for free. For the last 5 years, it has made more sense for us to get Sling (with the sports package) for 25/month with my internet and get a TV antenna.   

Recently we ended up moving to a new place where Verizon FiOS is the only company available with steady internet. Here’s how the maths worked out for us:

It was an easy choice when it came to deciding on Verizon+Sling or just doing Verizon. 

What if you just like so many shows across different networks? Then, you need a life outside of watching TV all day – I heard the sun is good for you. Yes, you might miss out on these great shows to talk about at work, but you know what is a better feeling?540+ extra dollars in my pocket. 

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