If you’ve been teetering on the idea of abandoning that cable package, then perhaps you’ll find this article inspiring. Robert Berger recently asked the question on USNews.com, “would you give up cable TV to retire early?” Putting money back for retirement can be overwhelming, especially when we have so many other present costly priorities. Some might argue that giving up the luxury of cable might send one spending more on other forms of entertainment. But when you crunch the numbers, it’s hard to argue with the amount of money you’ll be stowing away.
Robert Berger says, “While the cost of monthly cable packages varies significantly, the average is about $80 a month. Multiply that cost by 50 years and it totals a whopping $48,000.” Say what?! Now see what happens if we invest that extra cash, “If you invest that $80 a month in a low cost S&P 500 index fund that returns 8 percent annually, the amount grows to an eye-popping $638,000. That’s a lot of dough to pay for 500 channels of TV most people will never watch. If you can bump up your returns to 9 percent, the number grows to almost $1 million.”
I’ve been cable-free for over 5 years now. My secret? I exchanged one of those not-so-good Christmas gifts for a Google Chromecast (only $35). With it, I can stream videos and music from any device. I also pay $7.99 for a monthly Netflix subscription. Having those little pieces of technology save me a lot each month. In fact, I even canceled my gym membership because I now have access to a plethora of work out videos that I can access from my living room. One million dollars, here I come!
So, are you willing to sacrifice cable TV in order to retire early? Let me know in the comments below.
References: USNews.com. Check out the full article here.