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Cut your cable bill and use the savings to improve your life

Every month, millions of households across the nation find themselves asking the same question… “Why are we paying so much for cable?” Sound familiar? With the rate at which cable prices have been rising, it is understandable if you feel a bit uncomfortable with how much money you are sending to your cable provider each month.

The average cable bill has been rising by 6% each year, and if it continues at the current rate, the average monthly bill is going to hit $200 by the year 2020. Because of the rapid increase in prices, more and more households are making the decision to cut the cord.

After months of going back and forth on the issue, I finally made the jump to cut the cord tying me to my cable company. It was not an easy decision to make. There are a lot of shows that I love to watch, but I finally decided that I was simply not getting $175 worth of entertainment from my television each month, so why spend that much for hundreds of channels that I never even bother to watch?

So, last week I called up Time Warner (TWX) and canceled my service. My monthly bill instantly fell from $175 a month to $55 a month. At $120 a month in savings, I basically gave myself a $1,440 annual raise.

In all fairness, there are some costs involved with cutting the cord, but they will quickly pay for themselves. I had to run out and pick up a couple of Roku boxes which all together cost about $180. I also signed up for Hulu Plus which costs $7.99 a month. I already had a Netflix membership, which also costs $7.99 a month. I may or may not get an antenna, but there are channels on Roku that give me live TV from all the major networks, so I doubt I will make that purchase.

So to review… $180 spent on two Roku boxes, and $16 a month going forward for Netflix and Hulu Plus. After two months the Roku boxes will pay for themselves and from that point forward I will have a $15 a month bill… still saving me over $100 a month from my previous cable bill.

Michael Fowlkes

Michael Fowlkes is a financial writer who has been with the Fresh Brewed Media family since 2004. Over the course of his tenure with Fresh Brewed Media, he has worn many hats, including portfolio manager, options analyst, and writer. Michael received his undergraduate degree from Virginia Tech in Accounting and got his start in finance working as a stock trader for six years at Chase Investment Counsel in Charlottesville, Va.