Compare Individual Services, Not Bundles, to Save Money

While bundling services (like cable, phone and internet) can sometimes save you money, personal finance blog Free Money Finance shows us that sometimes, you're better off paying for services separately.

Since bundles often advertise short-term "promotional prices", you may be better off buying services separately from different companies:

I pay AT&T $80 per month for my phone (unlimited long-distance) and DSL (I believe it's the highest speed they offer.) I pay Comcast $35 for cable TV. This is a promotional rate, so let's say I had to pay them $50 as the "standard" rate. Even then, I'm looking at $130 per month versus Comcast's "every day low price" of $146. Tell me again how I'm saving money by bundling?

We've all seen posts touting how bundling your services can save you money. It probably can in some cases. But often those are promotional rates designed to get you hooked. Then once you are, the rates go up to "normal" which are often very high. Consider this a reminder to always do the math and not assume something is cheaper simply because it's bundled.

Now, this is an anecdotal example, so your mileage may vary. It's all very dependent on how many companies are in your area, what technology they're using, and other factors. I, for example, live in a specific part of town where I only have access to one or two companies, such that if I separated my internet and cable TV, it would certainly be more expensive.

That said, if there are a lot of services in your area, this is a pretty good tip—since we often look at the more heavily advertised prices and don't dig deep into looking at the price of each individual service from each company. Of course, you can always just ask for lower prices too. Hit the link to read more, and if you've got your own tips for saving money on subscription services, share them with us in the comments.