Cutting the Cord: How to Save Money on Cable
It’s no surprise to anyone that Americans are increasingly cutting the cord on cable and switching to streaming services. Companies such as Comcast are notorious for making you call every year or two to haggle for a new price. Lack of competition gives cable and internet companies the power to do pretty much whatever they want. They are masters of raising the price and then lowering it just a little to make you feel like you’re getting a deal even though you’re paying more than you were. Inertia and feeling like you don’t have options cause many of us to just keep paying even when it doesn’t really fit our needs or budget anymore. The good news is that many people are paying so much that there’s plenty of room to hone in on what you really need and reduce costs to a more manageable amount.
I recently helped my mom go through the process of reevaluating her internet and tv options. Comcast had been raising her rates. She had just “renegotiated” her contract and two months later a new $15 charge showed up on her bill, bringing the total to over $190/month. Despite that being quite high, it wasn’t actually the amount that prompted her to reevaluate her options. Rather, it was the frustration of constantly having to call and the feeling that they were taking advantage of her.
My mom’s setup worked for her. She wanted cable tv so she would watch network news programs and paid extra so she could watch the Hallmark channel. She has enough money to do what she wants and that was something that made her life more enjoyable. That is a perfectly good reason to pay for things and I’m not going to shame someone who has decided that’s what they want (if they can afford it).
On the other hand, many of us are working on autopilot and are paying for things out of inertia. We haven’t taken the time to evaluate what we really want or what services we’re using. We haven’t stopped to consider whether the enjoyment we get is worth the amount we pay. Or sometimes we simply can’t afford it. If this is you, then taking the time to go through this process is worth it and can save you a lot of money.
Here’s how to figure out the best options for you (or your parents…)
1. Identify the shows and channels you actually want to watch
I’m not talking about things you turn on when you’re bored, just because it’s there. What shows or channels do you intentionally go to when you turn on the tv?
2. Check to see if they are easily available on a streaming service
In my mom’s case, we found that Hulu Live TV will give her all the basic channels for $60 per month so she can watch her news and CBS shows. She signed up for the free trial to make sure she has what she wants before making a commitment. It might take some time and research to figure out the best ways to watch what you want, but it can be worth it.
3. Check for alternatives
If your area has access to any other internet and cable providers, call them to see if they will offer you any good deals. You do not need to commit. Tell them that you are evaluating other options and will get back to them if their deal is the best. An alternative to calling would be to simply take note of any deals you see advertised.
4. Negotiate
Go back to your current cable company and use your new information to negotiate. Different people have luck with different strategies. In general, be firm, but kind. Yelling only serves to make the person on the other end want to cry and is not a negotiation strategy. Be persistent in stating that you can get a better deal elsewhere. If that doesn’t work, you can always cancel. Sometimes that’s enough to get a better price.
5. Add on other streaming options as desired (and as you can afford).
Even if my mom adds on a PBS or Britbox membership, she’ll still be making better use of her money. The great thing about streaming services is that you can cancel and restart much more easily based on what you’re using at any given time
Cutting the cord results
In the end, my mom had to make multiple phone calls because cable companies are skilled in taking advantage of people. The result was that she cancelled the cable portion and got a “price for life” deal for internet only at around $55/month. This means that she went from $190/month to only $115/month. That’s a savings of around $900 just in one year! She’s much happier knowing that she is more in control of what she pays and she no longer feels quite as victimized.
Reducing internet/cable costs can free up money for other priorities, whether it is paying down debt, saving for retirement, or socking away money for other goals. It is a necessary step when you’re spending more than you earn. But, if you are taking care of all of your other financial priorities, spending money on expensive cable tv is not something that should make you feel bad.
The point of this is not to shame you for spending on things that you enjoy. Rather, you need to be intentional in making sure that the expense fits in with your life goals and values. Deciding to pay for Netflix because you watch it all the time and it brings you and your family enjoyment is different than just having all of the options out of default and hardly ever using it. Whatever you decide, making mindful decisions about your expenses is key to living a good life.
