Can Cord-Cutting Really Save You Money?

What happens to TV after Cord Cutting
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Can cord-cutting really save you money?  Spoiler-alert: Yes, it can.

Cord-cutting, if you’re not familiar, is the practice of ditching cable and/or satellite television service in favor of streaming, a-la-carte services from Netflix or Hulu and HBO Go.

I’m a cord-cutter and I believe millions of people across the United States are too.  In fact, 2012 was the year landline telephone service providers saw permanent irrevocable decline in monthly home subscribers.  I personally haven’t owned a landline service since leaving my college dorm because I had a cellphone.  Back then, everyone had cable TV and telephone service bundled together, and the costs made sense (people got value for the money).

Now, due to increasing cable TV rates, the case for cord-cutting has become the plague for companies like Comcast (I hate them), Time Warner and Verizon, to name some of the largest in this industry.  The average Cable TV/Telephone bundle, once you passed their introductory period, is $125 per month.  That’s $1500 more per year you may not need to pay if you cut the cord!  I know the cable TV service is one of the top expense line item in your budget and most people don’t scrutinize their entire bill, leaving you with some “leaks” in the bucket.

What I did immediately when I ditched Verizon FiOS and DirecTV – My Cord-Cutting Hack!

Signed up for Netflix: $10/month
Signed up for new Internet-only Service: $58/month (this is a necessity for now, until a free, secure service becomes available in the future).
Bought a Roku 3 and installed Amazon Streaming: $40 (one time).  Amazon streaming video is included for Prime members, so that’s “free.”
Signed up for Hulu: $7.99/month
Bought an HD Antenna on eBay: $35.00 (this is so that I can get local channels, handy during NFL Football season or for the News).
Total Monthly Costs:  $75.99

I went from paying $178 on a Verizon FiOS account to a savings of $102.01 a month by cutting out the cable and local TV service.  Those unnecessary expenses didn’t make any business sense.

For a brief time I signed up for DirecTV from Costco because they offered an upfront $200 Costco gift card.  So when the intro rate ended, I ended up with a $220 monthly bill!  This was because I had some sports channels on there that I really didn’t use.  What a waste.  As soon as the contract ended, I closed the account and returned the satellite receiver.

With a variety of offering in the streaming service space, I declare the traditional Cable TV subscription model as dead!  So if you’re on the fence about ditching cable, I say go for it, you won’t regret it.

If you think otherwise, let us know and comment below, or tell us on Facebook.

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About Brandon Foster 19 Articles
Brandon Foster writes about stock and options trading for Camtrading.com. He also writes product reviews for a prominent online publisher. Previously he managed an equity fund and daytraded full-time in Seattle. He currently lives in Portland, Oregon, and spends his free time thinking of new ventures to start.