Reducing Monthly Costs
One Dad will not only be an investing site. The more I look around at my peers the more I realize that most FIRE (Financial Independent, Retire Early) websites are about the expenditure side. That is, they concentrate not on increasing income but on reducing outlays.
I would imagine that One Dad will primarily focus on income – dividend income as that is where my interest lies – but its always nice to reduce ongoing expenses. I will do my best to approach this from a personal perspective.
With that being said, I just ordered the OOMA phone system. We currently pay $40 per month for our home phone service. I think it’s close to $50 with fees etc, which when you think about it is just ridiculous. In the age of smart phones, the POTS landline is a commodity that should be virtually free. With OOMA that’s exactly what it is. You pay monthly service charges (i.e: mandatory taxes) and that’s it. For 99% of the people out there this is all they need.
After doing some digging I realized there is an updated version that connects to your home wi-fi network so it doesn’t need to connect to your cable at all. For me, that is a great benefit – I have OCD about cabling. 🙂 I looked again at the updated version and found a price difference. I generally prefer to order from Amazon, but went with Costco this time.
OOMA Telo Wireless Costco 129.99 (same price as the older model)
So I ordered up the OOMA Tell Wireless (It seems to actually be called ‘Air’). A no brainer – get the updated version for the same price.. uhh yeah. So, that is in the process of being shipped.
I actually looked at doing this a couple of years ago but I couldn’t figure out at the time if I would have had to get new handsets. Well, you don’t. It works with existing sets. It is still not very clear to me that that is the case as their handsets are displayed so prominently, but there you go. You can subscribe to a ‘premium’ OOMA phone service for $9.99 a month if you want but I don’t think we will. They start you out with a free trial of the premium service but honestly I think the basic will do for us just fine. We will also be porting over our home number which is a one time fee of $39.99 to do so. I will let you know how this goes. It will be nice to call our cable provider and tell them to cancel the home phone service. With the porting its looking like a 3-4 month payback and from there on in it will be $4 a month ongoing for a service I am paying close to $50 a month for now. Also – we are probably bundled in some way so will probably lose a ‘discount’ of some sort but I see this as a first step to go to only having a internet connection to the home.
Next up will be the TV service.. I am doing some research now so stay tuned.
Where it makes sense, I much prefer to invest in fixed cost assets rather than ongoing expenses.
Capital Expenses > Operating Expenses.
Do you have experience with OOMA or cord cutting? If so, let us know in the comments below