Kat's Money Corner: Channeling your TV spending

KatOne thing I hope my Dollars & Sense blog posts have communicated clearly over the past year is that you don’t have to give up all the things you enjoy to live a more financially fit lifestyle.

You can make a lot of progress by combining a little bit of research, planning and effort with a few small sacrifices.

So, as I introduce today’s topic – cutting back on or even giving up your cable or satellite video service – don’t jump to conclusions.

I’m not suggesting that anyone give up TV, but I do recommend taking a hard look at what you’re paying each month for cable or satellite service. Evaluating and modifying your services can free up more money to help increase your savings or even pay off debt.

There are a couple of easy steps you can take to reduce overall costs of your services. Step one is to think about cutting back to a lower tier of service. How often, really, do you watch the channels on your premium tier? There are probably some on there you’ve never watched at all. Would you really miss them if they went away?

Next, you should comparison-shop and negotiate. Although both can be time consuming, they can also be extremely rewarding. In most parts of our metro area, you have choices – at least between cable and satellite, and usually among multiple providers for each.

Compare rates and service levels available in your neighborhood, making sure you include all fees and add-ons. Look at discounts available for combined services, such as a bundle that includes phone, Internet and cable TV, and do the math compared to what you’re paying for all of them now.

Finally, call providers and ask flat-out: “I’ve calculated that this offer from “XYZ” company is the best available. Can you beat it?”

Another option is to have your Internet work double-time. The amount of current and vintage programming offered on dozens of sites such as YouTube, Hulu, Netflix, and Amazon is enormous, and enough to keep almost any family entertained 24/7. And while there is a lot of the same programming shown on cable and broadcast networks available on the Web, keep in mind it won’t be everything.

Now, if you really want to save some money, consider eliminating paid video service entirely.

Two recent articles – one in The New York Times and one on the blog Bible Money Matters – describe how to combine your Internet connection, a networked video gaming system, free downloadable software and a modest investment in electronics to pipe free video from the Web directly to the TV in your living room. Keep in mind you should be at least somewhat tech-savvy to try and pull this off.

Whether downsizing or doing away with paid video all together, making changes in your cable and satellite services can result in real savings. It may take some time to see major savings, but you’ll be able to channel it to pay off debt or stash away for a rainy day. Either way you slice it, over time, that’s small change that adds up.

Kat's commentaries appear each Tuesday on Dollars & Sense. When not blogging or watching TV, Kat works as a manager at CommunityAmerica Credit Union.