Cute Tasty Photo Credit: Cinderzelda.com….
I was discussing this with BF on the weekend, and I’ve realized that by not owning a TV, I’ve saved much more than just the cost of cable and the TV itself.
Granted, I do “watch TV” when I’m on the train, because I watch Sex and the City episodes, or Cashmere Mafia… but that time is wasted travelling anyway. I’m doing double-duty y’all! But let’s assume I never had to travel… (HAH!)
Disclaimer: I’m not ragging on anyone who owns a TV, or trying to tell people NOT to own a TV, etc. I’m just writing out my and BF’s weekend thought process on TV and the costs of it. I used to be a TV-aholic. I watched many many hours a day. I’m talking 3 hours a night at least on weeknights, and 5 hours a day (each) on weekends, for a whopping grand total of 25 hours a week!!!
Let’s break it out:
Initial Upfront Cost:
TV: I would’ve probably purchased a Flat Screen 32″ (I don’t like bulk and would’ve probably gone for this): ~$800 as a 1-time cost
Cable Subscription (with my HGTV, TLC and Food Network channels): ~$60/month or $720/year
TOTAL COST: $1520 for the first year, and $720 for each subsequent year.
Now if I kept that flat screen and never upgraded (probably pretty true), and assuming it lasts for 10 years, and I watched TV for 40 and kept upgrading to the “best” of the market at the time in terms of slimness, clarity, etc.
I’m also assuming that cable prices stay on average, the same (may drop, may increase)
Lifetime Cost (Next 40 Years):
TV: $800 x (40 years / 10 year TV lifetime) = $3200
Cable: $720 x 40 = $28,800
TOTAL COST: $32,000
Popping those numbers into a savings calculator, assuming I don’t upgrade my TV every 10 years:
I end up with:
Can you BELIEVE IT? $84,343 in 40 years!
And that’s just for my ‘basic’ TV cable package without upgrading my TV every 10 years.
Now to add more poundage on to the entire thing..
Cost of Time
I earn about $67,000 gross a year or about $53,000 net.
I work 40 hours a week, and I get 3 weeks vacation + holidays.
This means I work about 48 weeks a year, or 1920 hours a year, assuming a whole week for holidays, which I’m sure is inaccurate.
$67,000 divided by 1920 hours* = $34.89/hour (gross) or $27.60/hour (net)
*this is just a simple calculation. I could go into detail about how I get bench time, or the fact that sometimes I just sit around waiting for people to give me information before I can get working, and I think my hourly wage would actually be about $69.79/hour. This also doesn’t include the perks I get like sometimes being able to live in a hotel (therefore, rent-free), get my food paid for and my cellphone covere. But I digress.
They say the average North American spends about 170 minutes a day, or ~20 hours a week watching TV.
Let’s be clear though. I’m not saying that you’re going to be working those 20 hours in addition to the 40 that you already do to make the additional cash, but hypothetically and for the sake of concrete metrics/comparisons, the value of your hour is your working wage, and in my case, it’s $27.60 (net).
Which means 20 hours x $27.60 = $552 a week, or $28,704 a year.
And $28,704 x 40 years = $1,148,160 in hard numbers. But if you take that $28,704 a year (net) and put it into a savings plan, you could end up with almost $3 million in 40 years.
Other incentives
Just off the top of my head….
I’m able to cook my dinner and lunch
…..because I have more time to concentrate on it. Yes, I know I could be cooking while I watch TV, but.. I’ve found in the past that it took longer to cook because I got distracted easily. And if you cook your lunch every day (not even including dinners), that’s saving about $7 a day ($10 for a lunch, $3 to make a homemade lunch), which is $1680/year, $67,200 in hard numbers or if I invested it, $185,733 in 40 years (assuming the above numbers)
I’m able to go to the gym or exercise
…..because I’m not sitting on my butt watching TV and I have no excuse NOT to work out or feeling too lazy to.
I’m able to get my other ‘chores’ done
…..like laundry, painting my room, organizing, decluttering, throwing stuff on FB Closet, whatever!
I’m not constrained by time
…..because I don’t HAVE to be home at 7 p.m. to watch American Idol. I don’t HAVE to be home to do anything. I can take the time out to wander around Toronto, check out little boutiques (oops.. bad idea if I want to save money), and to just have the freedom of time. Of course, you could just throw it back at me and say: Hell I watch TV online, so I watch it WHEN I WANT. Or you have Tivo.. which brings me to my other point.
I’m not spending $$ on TV “necessities”
….like Tivo. Apparently it’s a godsend to everyone who has children and/or busy inflexible schedules. But Tivo isn’t free. Or add to that getting HD-TV, or a fancy sound system, and comfortable TV-watching couches, dimmers, lights, a whole theatre set up. We’re talking about maybe another $1000 – $10,000 (depending on your tastes) in TV accessories, not including Tivo or HD-TV subscriptions.
Plus if you have kids, it’s a bonus. More time to play catch with them, or board games…instead of sticking them in a corner and throwing them a cookie now and then to keep quiet..while your eyes are glued to the set I KID! I KID!!!!!!!!!! 😛
So what’s the final total (in 40 years)?
(Note: Hard Savings / Invested at 5% Savings)
Cost of TV + TV Subscription: $32,000 / $84,343
Cost of my time: $1,148,160 / $2,929,268
Cost of accessories: $5000 (a nice average)
Adds up to a hard number of $1,185,160 or if invested at 5%, taxed for 35% for 40 years $3,018,611.
Naturally, I’m not saying that EVERYONE will come to the same conclusions (all of our numbers are different), but it’s clear that even just the intangible benefits of having more time to yourself, and being able to cook your dinner, lunch and do what YOU want, is far more valuable than cash.
(Time is always the most precious resource available to women…and men)
And it’s certainly UNREALISTIC to assume some of the numbers above, especially the cost of my time with a total of $1.15 million, because I would never work more than 40 hours a week. 🙂 But it’s nice to sometimes see the numbers on a page to make me realize that the littlest amounts, of just $60/month, really do add up.
I am also no angel. I’m addicted to my MacBook, the Internet and all the pleasures that come with it. I bet you I spend tons of time on here, which is just as bad as watching TV, but somehow, it makes me feel better because I feel productive; I blog, I listen to music on iTunes while I read, which is the same as listening to a stereo and reading, I post stuff on FB Closet to sell, I manage/play with my finances, and the list goes on……
Which I’m sure some people can consider as ‘wasting time’. But let’s face it, what’s the point of having time if you can’t fritter it away once in a while watching a movie or just lying around staring at a wall?….er.. not that I’ve done that 😛
What I’m really saying is that my priority is not TV any longer. It used to be but now I find I have much more time to do what I want to get done, and I feel more productive without that ball and chain around my ankle.
But hey, if it makes you happy (as Sheryl Crow would say), it can’t be that bad 🙂
Wow I’m late to the party… but I really do wonder: Where do you get 7% interest?
I’d love that!
Sure, 32.000 dollar saved is impressive enough, but I can’t see how you get from there to the 84.000 (or from 1 to 3 million respectively)… what kind of savings plan is that? Help :]
Hope you’re still reading this.
I’ve never owned a TV, by the way. Didn’t like the program and all that technical stuff that comes with it. But thanks to Youtube et al I still manage to waste all my free time.
This totally makes sense. PS I’m watching SATC right now on my other computer! The episode when Big And Carrie meet AGAIN and they fall in the pond haha.Â
Amphri: THat’s what I’m talking about. Commercials (and stupid J. Crew mags) make me want to shop 🙂 And shop badly….
I watch movies on DVD or I see them online/steal BF’s collection
I have a TV, but I don’t have cable, and since it’s a new tv, I don’t get the regular channels on it, either (no rabbit ears for me!)…
I can’t tell you what this has done for my life in any amount of small words.
I have more free time, I cook more often (rather than eating out). I’m not tempted to buy, buy, buy after seeing an interesting commercial. I read! (GASP)
Truthfully, the only reason I keept the TV is to watch movies on it; I do like movies, and it provides some entertainment when I have people over for Movie Mondays!
ARG if only I could figure out how to get the trash can to delete that adam brown spam message
Lady Luck: We all need a little sin time 🙂 The problem is DEFINITELY keeping time in check. I always had half and hour then I’d say: Umm.. just another half hour more….
Barb: No spam allowed. I actually read the comments y’know.
Holy crap!!! I agree with you. I stopped watching the news so it wouldn’t have such a negative impact on my thoughts. I think the problem is keeping the time you’re in front of the tube in check. I know that America’s Next Top Model marathons aren’t the best way to spend a saturday. 🙂
see this is all very strange to me. I can understand the gaining precious time thing. I definately agree life without tv can improve that.
But TV has never cost me a cent. I live in australia, i got a hand me down tv/dvd player from my parents and i only watch free to air tv. total cost?? $0
I have heard in places like England you pay TV Tax, and in places like the US there is no point in tv without cable, cos free to air is rubbish. but in Australia it is cruisy. good tv, no cost, no loss. (except maybe the time element)
besides …. i would be devistated without my collection of dvd’s to cuddle up infront of, with my b/f on wintery nights!
yet after i have said all this, the idea of having more time to do things i need to get done is damn appealing!
Ginger: *blush* Thanks 🙂 I’m of the same mindset LOL
David: That’s a good point. Now I’m less scared of people because I’m not hearing about all the rapes the murders, … I mean I’m aware of being safe but I’m not paranoid
Dog: LOL!!!!!!!!!
Fashion Ivy: Thanks!
Looby: I was the same way. intense tv lover and I watched reruns for fun and wasted a LOT OF TIME but now… I dont even miss it
Ms M&P: if you can afford it and it makes you happy, why not? But for me.. it was an all consuming priority that I just couldn’t justify any longer
God, I’m trying to avert my eyes from this post. I know I watch too much tv and spend too much on cable. I’ve just got to kick the candy and I’m not ready to yet. I’ll get there. Thanks for the post. It’s a nice illustration of how $$ it gets.
I completely agree- I went from intense student TV watching (I don’t even want to think how many hours a week) to no TV for the last 2.5 years when we moved to Canada.
I love it! Of course I do still spend too much time on the interwebs, but I also read more, I spend more time on my hobbies, and I take evening classes.
Of course when I go home to visit my parents I quickly sink back into my old habits and watch CSI Sunday with my dad!
Hey love ur blog. Great post
Good thing my Tivo can’t read, or she would kick your butt.
We canceled our cable in January. Biggest change? The world seems like a much saner place.
Not watching CNN is good for your soul. Peter Mansbridge tends not to scare the bejeezus out of you.
Link love! I am totally going to post this on my blog…
I’ve lived without TV for a year and now that I’ve experienced the savings on all fronts I don’t know if I could go back to getting cable again.
This was a great article, FB and I really like how you did the math and showed the numbers since it really drives it home.
I’m not adverse to TV, I just can’t justify spending that much on it! I watch my shows when I want for free on my laptop instead.
🙂