Choosing Sides against your Financial Interests 2 of 2

Choosing Sides against your Financial Interests 2 of 2

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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 fictious savings based on cable company projections of their bottom line.

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 budget. It’s not always the challenge to just be a better consumer of the things that you want paying less. It is also about exploring different and less expensive ways to achieve the same outcomes.

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.

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