Today I heard a story on an National Public Radio news show about this woman who got fed up with paying her bills so she disconnected her phone, her cable, and everything. She now runs a business utilizing her Blackberry, and her Kindle reader taking advantage of public WiFi hot spots. This story hit pretty close to home as I am also guilty of nixing a few services in lieu of cheaper alternatives. So I thought I could document and discuss some of the ways I have trimmed back in this horrible economy. Maybe it will give someone else an idea on how they can save a few bucks a month or encourage someone to try something they were not so sure of. Some of the things I have taken it upon myself to setup as alternatives some people think are highly technical but I assure you I have only done things that while may take a little knowledge to get up and running, are usable by anyone including my 4 yr old son.
So I actually cut my cable service a couple years ago ago due to a sudden and sharp increase in my monthly bill. I won’t go into the details any more than to say that they jacked my bill up by $30 a month for no additional services. My response to them was to show up at their office the next day cable box in hand. After all, even when you only have a smaller budget package with around 60 channels to choose from, do you really watch more than 5 – 10 of those channels with any kind of regularity? Also, with the switch to digital TV signal, my HDTV with built in HD-Tuner became capable of pulling in around 10 channels with a simple set of bunny ears at no monthly cost. Also 100% of my TV broadcast is in HD, instead of just some channels or having to pay an additional monthly charge for that feature.
Now I will admit. The prospect of living life without cable can be a scary one when you are accustomed to having it. I will also admit it’s a very hard source of entertainment to replace outright once it is entrenched into your life. However I must add that it is very doable. On a very positive note, it doesn’t require draconian measures either. Just because you don’t have cable, doesn’t mean you have to miss your favorite shows. Not in this day and age. Now I’ll explain how I make it work.
First off a simple realization comes to mind. All the major TV and cable networks now post up to three of their newest episodes of their TV shows to their websites for instant viewing. That now means that missing a show when it first airs does not curse you to trying to seek it out during a rerun. Nor do you have to wait for an entire season to come out on DVD to catch up. This new service that broadcasters have been offering for quite a while now is also aided by such sites as Hulu and CastTV. These websites claim provide you with access to these shows which is sort of the case but most of the time they are simply linking you back to the network website. My suggestion to avoid being overwhelmed by the search possibilities of these sites is to go straight to the network website for the show you want to watch. For instance if you want to catch up on the Simpsons, simply start with www.fox.com and find the Simpson’s link. This can be easier than using Hulu or other third party sites as they often time include other videos such as clips and previews and it can be frustrating trying to determine if there is even a new episode available to view. Going straight to the site can cut down on some of the extras and get you to watching your show a little quicker.
A very important part of this message is that in order to enjoy streaming online video, especially once it becomes your primary source of video entertainment, you will need a rather robust internet connection. I recommend a Cable modem or DSL connection rated at at least 6 mbps download, and 1mbps upload. Obviously the higher the speed, the better off you will be. Everyone has their own preference on whether or not Cable or DSL is better, but it really depends on your area. Right now in my area cable offers a max speed of 15 mbps down / 1 mbps up, while with AT&T’s Uverse fiber internet I can get 18mbps down / 1.5mbps. Both connections are right around the same price point, but I went with the fiber because I’ve been reading that fiber technology is rapidly improving while cable companies are struggling with the ultimate limitations of coaxial cable.
So the bottom line, I cut off all my subscription TV services and knocked my monthly internet access fee down to $55 per month. I also did this by eliminating my land line phone service as well. The explanation for that is coming up. Bear in mind if you make these switches yourself that you do save on individual services when you bundle them together with either your DSL company or your cable company. So in the end you might end up paying more for your internet service than your neighbor but when you consider that your neighbor is still paying $50 additional on top of what your paying to maintain their TV service you realize that you may not be getting the lowest price on your internet, but your still saving $$$ every month.
The other piece of my own entertainment plan is Netflix. I started off with a standard $16 a month service that included unlimited per month, but two discs at a time by mail with unlimited access to Netflix Instant movies. However just recently my wife and I realized that we almost never watch DVD’s anymore. Therefore we dropped down to a $9 per month unlimited Instant with one disc out at a time. When Netflix Instant first started up they only had a handful of terrible B movies but over the last couple of years the quality and quantity of their instant movies has increased exponentially. I have even started seeing new releases now being available for instant viewing. The other nice thing is that if you really want to watch a movie, and they don’t have it on instant, you can always put the DVD on your list and receive it in the mail. This service has been worth every penny to us, even despite the fact that we’ve not exchanged movies with them in months.
The other part to saving money by unplugging is with your phone service. Let’s face it. Nearly everyone has a cellphone these days. Nearly everyone has an unlimited plan on their cellphone these days. If not, most people have reasonable plans on their cell phones. In fact, aside from my parent’s phone number and my in-law’s phone number, I cannot think of a single friend that my wife or I have where we have a number to their house. Everyone runs their communications via cell phone these days. So why pay for a land line? Well if you’re like me you still want a number to put on applications for things, or for companies to call you on as to not disturb you on your cell, there is an alternative to expensive traditional phone service. It’s called VOIP or Voice Over Internet Protocol usually referred to as Voice Over I.P. or Internet Phone. This is the type of service provided by cable companies when they over to run your phone service through your cable in a bundle package. Some other wonderfully less expensive alternatives include Skype and Magic Jack.
There are a couple different ways to run these services. The simplest is to simply get an IP enabled phone. Skype offers a couple models that support their services that do not even require a computer to be turned on. That is the downside to the cheaper way of doing this is that it does require you to have your computer on in order for it to act as your telephone. Some people don’t like their computers running all the time and for them I recommend the afore mentioned IP enabled phone. However if you’re really cheap like I am you’ll go out and buy a reasonable headset and plug it into your computer and when you need to make a phone call you’ll simply slide your headset onto your head, open the Skype program, and dial the number. One of the great advantages I’ve found to using Skype is that it offers many more features than traditional phone service such as the ability to put calls on hold or to transfer them on the fly to say a cell phone. The really great part is the price. For my Skype calling, my unlimited local and long distance calling (yes, I can call any phone in the country and talk as long as I want) for $3 a month. I’ll repeat that. $3 a month or three dollars a month for UNLIMITED local AND long distance calling to ANYWHERE in the country. Now I know this sounds too good to be true. AT&T was charging me $45 a month just for a basic local service phone line. I believe I was paying somewhere around $60 per month for their unlimited calling plan plus $50 per month for my internet service. So what’s the catch you ask? I’ll tell you. Skype does not provide you with a phone number that can be called. This is a service provided by a third party that requires an additional monthly fee. I pay mine quarterly because that is the smallest payment package the company I lease my number from offers. My quarterly price for my phone number? $12 or twelve dollars a quarter! That breaks down to $4 per month. My total phone bill every month for Unlimited Local and Long Distance calling plus having a phone number that people can call that also has a totally customizable voice mail system… $7 per month.
Well this post is getting way long winded so I’m going to wrap this up with a summary right now. What I was paying…
Phone + Internet = AT&T Local and Long Distance $55 per month + 6mbps DSL $30 per month for a total of $85 per month plus taxes and fees (variable per month of course)
Cable TV = Time Warner Cable basic cable package which included around 60 channels plus 20 HD channels and an HD receiver with DVR $90 per month
Now…
ATT Uverse 18mbps – $55 per month
Skype Unlimited Nationwide Calling – $3 + Phone number $4 for total of $7 per month (no taxes or fees)
Netflix with Unlimited Instant Online Movies – $9 per month
Grand Totals (per month): When I was paying too much – $175 Now that I’ve “unplugged” – $71 Total Savings per month – $104 Per Year – $1248
So the bottom line and the moral of the story is… this economy has really tightened some belts but if you put your mind to it and embrace technology, even a little bit, you can save some pretty big money. $104 a month has allowed my family to keep our house and maintain our entertainment and communications despite my wife losing her income and me taking a pay-cut in 2009. There are many things to consider when choosing to make changes like this so make sure you think it through. Both my wife and I have cell phones so the fact that Skype offers no emergency services does not matter to us. We have two separate phones capable of calling 911 in an emergency should we need to so that didn’t affect our decision but if it’s the only phone service you plan to have you need to know things like this. I will be happy if one of these two things happens or both… first of all if someone reads this entire article… secondly if it gives them an idea that helps them save some money.