The Economics of: Cutting Cable
Earlier this month the Sasquatch family took a trip out to the Rocky Mountains to watch Mama Sas run in the Rocky Mountain Soap Women’s race. We had an action packed day of driving, hiking, parks, and hot tubbing. As a result, the Cubs were both in bed and asleep by 6:30pm. With dodgy mountain internet in the hotel and neither of us bringing books, Mama Sas and I decided to watch a movie on TV with commercials and all. This is something I hadn’t done in years! It was so strange to sit and watch commercials, and not check our phones every 5 minutes to get our dopamine hit. We cut our cable services 2 years ago and it made me wonder about how much money we have saved by not having it.
According to our old Shaw bill statements our cable and internet came to $120.65/month. Our current Shaw bill with only internet savings it is now $73.60. Creating a savings of $47.05 a month.
If we put $47.05/month into savings at 5% for 40 years. We would have a total savings of $71,613.73.
After seeing the savings amount of dropping our cable I wanted to check out the savings of the 5 different Shaw internet packages. The prices below are the rates after the reduced introduction rates that Shaw offers for the first 3 to 6 months.
- Internet 5: $55 a month
- Internet 15: $66 a month
- Internet 30: $75 a month
- Internet 60: $95 a month
- Internet 120: $131 a month
I have graphed out the savings in the line chart below. I started at the top tier package and calculated the savings for each tier that you drop down. So you can See if you had the internet 120 and dropped your package down to Internet 5 you would save over $115,000.
If you are wondering which package the Sasquatch family has, we seem to be on an old plan called Internet 25, which is why you see a difference in price. Each of these plans is based on the download speed. If you are an extreme power downloader you may require a download speed of 120Mbps, but most of us do not. It is important to understand that most of us use a wireless router at home which will reduce the internet speed in your home, so you may not be getting the full value of paying for faster internet.
I would guess that most families are overestimating how much internet speed they need and are paying for more, missing out on some huge savings. We suggest logging into your online account and viewing your usage to see if you’re actually using the amount of internet you are paying for. You may easily be able to downgrade to a lower tier with a cheaper monthly rate and not even notice a difference!