Whether you have cable or dish, monthly payments for this service are usually expensive. They might lure you in with free movie channels and a reduced payment for the first 3-6 months, but then after that it seems like your bill almost doubles. It’s not uncommon to pay $150 or more for TV. Even if you “only” pay $100/month, think about what else you could do with that money.
Save for emergencies. If you don’t have an emergency savings account yet, cutting cable will allow you to set aside that money into savings instead. This would provide you with a safety net in case of a financial emergency so that you don’t have to worry about charging/accruing debt.
Pay down debt. Pay extra toward your credit cards or other debts. If you have multiple cards/debts, choose the one with the highest interest rate to save you money in the long run. Or, if getting rid of a payment is a higher priority, choose the debt with the lowest balance. Making higher than minimum payments can save years of payments and hundreds or thousands of dollars in interest.
Have more fun. If you’re already working on savings and paying off debt, another $100/month or so can allow you to do more things. A couple months of not having to pay for cable can allow you to attend your favorite concert or go on that overnight trip with your friends instead of having to say no or worse – charging everything.
Save for a goal. Whatever your goal is – a vacation, a new couch, etc. – $100 (or more) per month set aside into savings adds up quickly. If you started saving now, you’d have about $1100 available for a spring break trip. The sooner you start stashing cash, the sooner you can reap the benefits of your efforts.
Cable/dish is just one non-necessity that you can cut to help your bottom line. Think about other items you spend your money on that you might be able to get rid of or reduce to give yourself a little more financial freedom and relief from stress.
If you have credit card balances, a Debt Management Plan with can help you pay off your debt faster and save money. For your free financial counseling session to see if a DMP is right for you, either click the button below to get started online or call 888.577.2227 for a phone, Skype, or in-person session.
LSS Financial Counseling is a nonprofit that helps people every day conquer debt and become more financially fit.