Choosing Sides against your Financial Interests 2 of 2
For example, I had a client who exclaimed, “Oh no! I can’t get rid of my cable because that’s my Internet.” I found out, after more discussion, that she was paying for a bundled Internet, home phone, and cable service. Let’s leave out the fact that she had more channels than she cared watch. I focused my reflection on the home phone. How does the home phone benefit compare to the cell phone? She thought for a minute, then admitted, “I don’t use the home phone. I just always thought a home phone was a good idea.”
The financial bottom line is that cancelling the bundle meant $60 per month instead of paying $140. She had bought into the sales pitch of the cable company stating that she could save money by bundling the services. Rather than paying $180 per month, she was paying only $140 per month. That savings, though, was a
This is an important lesson. Corporations will often attempt to sell you on the fact that you can pay $140 total so that you don’t have to pay $60. But, of course, that doesn’t make financial sense. The decision-making required is not only changing your lifestyle. It is changing the way you think about money. Does money draw on your desired lifestyle or is it based on a financial plan and projections—a
That same client, instead of paying $140 a month for the bundled package, can have Internet, Netflix, and cell phone for a total $110 a month. With that, we’re reclaiming $30 a month. She reasoned through that calculation and committed to some changes.