Let us assume the following expense:
Cost of Television average + Phone line = $68/month
$60 a month for 12 months + fees + taxes.
= $68 a month
$68 * 12 = $816 per year
$816 per year / 0.04 percent safe and passive return on investment = $18,000
$18,000 of savings needed to AFFORD any expense of $68/month!!!
An active/passive investment income of 4% safe withdrawal rate on a needed savings of $18,000 is the real cost to live with the extra expense of $68 per month, in this case for Cable Television + a phone line.
The number of months of saving of an income at $75,000 per year, and a 50% rate to acquire a lifetime of cable television will require a employer servitude and trading of time of approximately:
$18,000 / $2000 in max savings after expenses and income = 9 months of working at 50% saving rate.
This is required for a lifetime of cable television for anyone making $75,000 per year and having a cost of living of no more then $2,000 per month.
For those making part time at $14,400 per year, or $10 per hour at 30 hrs max per week, and assuming paying no other cost of living expense;
$18,000 / ($14,400/ 12) = 15 months of working at 100% saving rate.
So is it worth working an additional nine months to year and a half for having the luxury of commercialized TV programming and phone landline for life?
This is assuming lifestyle is already at a 50% savings rate. If not it will double the time required if at a 25% savings rate which would be 18 months for a higher then average paid full-time job, and 30 months for a part time worker at above minimum wages with all earnings being saved.
This just goes to show if you reduce your expenses you can become financially independent quicker in life. But if you add too many luxuries, all your life will be spent working as a requirement for those luxuries or materials with maintenance.
