A few months ago we finally cut the cable, and since then we haven’t missed it at all.
We still watch all of our favorite shows, catch the news, and don’t feel like we’re missing anything important.
There was only one moment I wished we still had cable—when the newest season of The Walking Dead premiered. But that will eventually arrive on Netflix, so waiting isn’t a problem.
According to NPD Group, the average monthly cable bill in 2015 was expected to be $123, and estimates suggested it could reach about $200 per month by 2020. That’s a substantial expense.
At $123 per month, the annual cost is $1,476. If bills rise to $200 per month, the yearly cost would be $2,400.
I know people who spend far more than this; one person recently told me they pay over $300 a month for cable. While that may seem extreme, many households do pay that much or even higher.
Cutting cable can save you thousands of dollars over time. Those savings can be redirected toward retirement, travel, family needs, or other priorities.
Below I cover common questions and considerations people have when deciding to cut cable. Read on to learn practical steps to ditch cable today.
Cutting cable is easy with a digital antenna.
When you think of antennas, you might picture bulky rabbit ears or a fuzzy, unreliable signal. Modern antennas are far better: compact, attractive, and capable of delivering clear local channels.
These antennas require a one-time purchase and no monthly fee. You buy the antenna and get local broadcast channels as often as you want without ongoing costs.
We recently purchased an indoor antenna that sits behind our TV; it’s discreet and invisible from the seating area. It delivers about 14 local channels with excellent picture quality. The antenna cost roughly $60 and will pay for itself many times over by eliminating cable fees.
Some people receive significantly more channels—sometimes 50 or 60—depending on location and antenna choice. If you’re exploring cable alternatives, a digital antenna is an affordable, low-maintenance option that I recommend.
We spend $8.99 a month on Netflix.
After canceling cable, our only ongoing TV-related cost is Netflix, which costs us $8.99 per month. Netflix gives us access to a wide range of shows and movies without commercials and without waiting for weekly broadcasts.
The downside is we sometimes binge-watch too much, but we’re getting better at moderating screen time.
There are many other streaming options beyond Netflix—Hulu Plus, Amazon Prime, individual episode purchases, and more—so you can mix and match services to fit your viewing habits and budget.
We don’t watch sports, so cutting cable was an easy decision.
A common question is, “How will you watch sports?” For our household it was simple: we don’t follow televised sports, so eliminating cable posed no problem. If sports are important to you, there are still streaming options and league-specific packages to consider, but for non-sports watchers, cutting cable is straightforward.
How much money are we saving?
To be candid, we weren’t saving a huge sum compared to some households, but the cable bill was mostly wasted money for us. Rarely did we watch channels that weren’t on local broadcast or available on Netflix, so the cable subscription didn’t make sense.
After canceling cable and subtracting our Netflix cost, we save about $41 per month, or roughly $492 per year. More importantly, we also save time. I used to spend time every few months negotiating with the cable company to keep rates from rising; without cable, that hassle is gone.
Is cutting cable something you’re considering? How much do you currently spend on cable each month? If you’re exploring ways to reduce expenses and still enjoy TV, a combination of a digital antenna and one or two streaming services can deliver the shows you want at a fraction of the cost.