How I will make $200K in 30 years by Cutting the Cable Cord
A few months ago, I cancelled by cable TV and subscribed to Hulu instead. This brought by Internet + Hulu streaming bill down to $90 instead of $180 that I was paying for Internet + cable TV.
$90 per month = $1,080 saved per year
If I put $1080 in an Index fund or a robo-advisor like Betterment.com, I make an average of 10% per year (over the long term), which leads to almost $200K in savings ($177K to be exact), as shown by the simple math below.
If you do the math by using a simple geometric series summation:
Sum(n) = a (1-rⁿ) / (1-r)
where
n = number of years = 30 years
a = yearly amount added = $1.08K
r = return per year = 1.1
Put that all in the formula and you get
Total Money after 30 years = $177K
which I rounded up to $200K for a clean article title ... :)
No wonder 2.5 million people cut the cord in 2016 and trend continues.
I don’t miss cable TV and in fact, love some of the original series on Hulu like The Looming Tower (our current favorite).
So, if you haven’t done it yet, cut the cord and make $177K in 30 years.
