Here’s another reason to cut the cord on your cable TV subscription: If you invested the savings in a Roth IRA, you could be a millionaire.
20 Something Finance makes a compelling argument for this, crunching the numbers to illustrate how much consumers would save if they ditched their monthly cable bill (the average cost is $75, according to CNN Money.)
Assuming you started paying for cable at age 23 and continued until you were 80, if the bill went up about $3.75 in today’s dollars, you’d spend about $53,865 over 57 years.
That’s a lot of money to splurge on “Iron Chef” marathons.
20 Something Finance’s snapshot of what the returns would be if you socked that money away in a Roth IRA using AARP’s investment return calculator is even more sobering:
- 4%: $634,970
- 6%: $1,102,950
- 8%: $2,081,549
- 10%: $4,209,990 *Note: These are not BI’s numbers. 20 Something Finance crunched them.
Sound off: Are you cutting out cable this year? What else are you doing to save?
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