Cut the Cable
September 4, 2014
Do you really need to slump in front of the TV for hours every night? Yes, it is quite a strong temptation, especially after a long days work. We all know that it is better to read a book, do a work out, better still give your time and attention to kids, if you have them.
Well, here is a positive reason to get rid of the cable. If you start paying for cable at aged 22, at say $80 a month, and continue to do so until you retire at 67. You’ll pay a grand total of $162,114.98 to do so, calculating in 5% inflation. That is a fair chunk of change that could be saved!
OK, so let’s say that you instead invested that $80 a month and got an average of 8% return a year. You’ll have the benefit of having an extra $400,729 after the 45 years! Making a combined difference of $562,843 between the person that ditched the cable and saved vs the one the didn’t. Wow, now that’s a big difference!