Is Cord Cutting Right for You? Part 3: Budget Considerations for Cord Cutting

We've already taken a look at your viewing habits and your comfort level with technology. Now, let's talk about one of the biggest drivers for many considering cutting the cord: the budget. Understanding the financial implications is crucial to determining if this switch will truly save you money and align with your financial goals.

First, let's get a clear picture of your current spending.

How much are you currently paying for cable or satellite?

Take a moment to calculate your total monthly expense for television. This should include the base service fee, any equipment rental charges for cable boxes or DVRs, regional sports fees, broadcast TV fees, taxes, and any other miscellaneous charges that appear on your bill. Having this number as your starting point is essential for comparison.

Considering the Cost of Content: Leveraging Existing Subscriptions

Before you start adding up the costs of new streaming services, let's consider what you might already be paying for that includes streaming content. You could be just a few clicks away from accessing a wealth of entertainment you didn't even realize you had!

• Do you subscribe to major streaming platforms like Netflix, Hulu, or Disney Plus? Factor in these monthly costs as they can contribute to your post-cord-cutting entertainment.
• Are you an Amazon Prime member? If so, you already have access to Prime Video's extensive library of movies and TV shows. Take some time to explore what's available there – it might cover more of your viewing needs than you think.
• Check for bundled benefits! Some services you already use might include streaming perks. For example, Walmart Plus subscribers often get Paramount Plus included. Review your existing subscriptions to see if any offer streaming access.
• Don't forget your mobile or internet provider! Some carriers offer free or discounted access to streaming services as part of their plans. It's worth a quick check to see if you're eligible for any of these benefits.

By understanding the streaming content you already have access to, you can avoid paying for redundant services.

The Role of Free Options

The cost of cord-cutting doesn't have to solely rely on paid subscriptions. There's a growing world of Free Ad-Supported Streaming TV (FAST) services like Tubi, Pluto TV, Freevee, and The Roku Channel. These platforms offer a surprisingly wide array of movies, TV shows, and even live channels without requiring a monthly fee. Also, remember the value of an Over-The-Air (OTA) antenna. For a one-time cost, you can gain access to free local broadcast channels like ABC, CBS, NBC, and Fox, often in high definition – perfect for local news and some live events.

Determining Necessary New Subscriptions

After evaluating your existing streaming access and the wealth of free options, identify any remaining must-have content that requires a paid subscription. Be strategic here – only subscribe to the services that offer content you will genuinely watch regularly.

Factoring in Equipment Costs

While you'll be saying goodbye to cable box rental fees, you might need to invest in some equipment upfront. This could include streaming devices like a Roku, Apple TV, Fire TV Stick, or Google TV. Factor in the cost of these devices. Additionally, if you plan to utilize free over-the-air channels, you'll need to purchase an antenna. The cost of an antenna can vary depending on its type and range.

Calculating Potential Savings (or Increased Costs)

Now, it's time to do the math. Compare your current total monthly cable/satellite cost with the projected monthly cost of the streaming services you've identified (including any existing ones) plus the amortized cost of any new equipment you need to purchase. Be realistic about your usage and avoid subscribing to services you won't watch frequently.

My Streaming Life has shown me that carefully evaluating my existing subscriptions, like my Amazon Prime membership which includes Prime Video, alongside the free content available on platforms like Tubi accessible via my Google TV, is key to maximizing savings when considering a move away from traditional cable.

In Part 4, we'll delve into how your lifestyle preferences fit into the cord-cutting equation and help you make your final decision.