If You Had Cut Just One Big Bill (Cable, Cell or Insurance) in 2016, You’d Have Banked Up to $15K by Now
Written by
John Csiszar
Edited by
Rebekah Evans
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If you have any connection to social media at all, you’re likely well aware of the current “2016 throwback” trend. Users are posting throwback videos and videos from 2016 across TikTok and Instagram, with searches for 2016 spiking massively according to Forbes. But what if 2016 wasn’t just a year of memes and pop culture moments, but a financial turning point instead?
Imagine, for example, how much money you’d have saved if you had cut just one big bill in 2016, like cable TV, your cell phone plan or auto insurance and kept that saving habit until 2026. Here are the numbers so you can see how much you could have potentially banked by now.
Option 1: Cutting Cable TV
- Potential amount banked: $15,000 or more
In 2016, the average American paid roughly $100 per month for a traditional cable TV package, per a Fortune article at the time. That’s $1,200 per year. Assume you dropped cable in favor of streaming, negotiated a cheaper bundle or went rogue and watched only free content. That amounts to 10-year savings of roughly $12,000.
Now, imagine that instead of letting that money sit in a checking account earning almost nothing, you put it into a conservative investment earning around 5% annually. With compounding interest, your $12,000, invested at the rate of $100 per month, would have grown to over $15,000 by 2026.
So, by cutting cable in 2016, you wouldn’t just have removed an annoying monthly bill, you’d likely have banked $15,000 or more over the decade.
Option 2: Trimming Your Cell Phone Bill
- Potential amount banked: $7,000
According to reporting by the Tax Foundation, the average monthly cell phone bill in 2016 was about $45. If you were able to cut this bill from your monthly budget, you could have saved about $540 per year. That amounts to 10-year savings of roughly $5,400.
Again, if you invested those savings at a modest 5% growth rate, your $45 per month could have grown to about $7,000.
Option 3: Lowering Your Insurance Premiums
- Potential amount banked: $3,900
Insurance is one bill where savings can have a big impact. Let’s say you had auto insurance costing $1,200 per year in 2016 and you shopped around, found discounts or raised deductibles responsibly to save $300 annually. That amounts to 10-year savings of roughly $3,000.
Investing that $25 per month at the same, conservative 5% return and you could be sitting on roughly $3,900 today.
Sure, that’s less dramatic than cutting cable entirely, but it’s real money you’d have in your pocket instead of being locked into the same old premium increases. Plus, while you can make an argument that you can live without cable or even a mobile phone, owning assets without insurance coverage is simply bad financial planning.
What Does This Trend Teach Us?
The real lesson here isn’t just “you should have done X back in 2016.” It’s that small recurring savings add up, especially over time.
The 2016 trend feels nostalgic because it reminds us of simpler times, but it also highlights how long a decade really is. Financial habits compound, just like interest does.
Whether you saved on cable, cell service or insurance, the key is consistency. Cutting one avoidable bill and investing those savings could easily have generated several thousand dollars. That’s enough for a vacation, emergency fund boost or even part of a down payment on a home. Or, even better, it’s a great start to a long-term investment plan.
How To Apply the 2016 Challenge Today
If you didn’t cut a big bill in 2016, don’t worry. You can take this same principle and start today. Here’s a quick checklist:
- Audit Your Monthly Bills: Look at every subscription, plan and premium you pay. Identify which ones are negotiable, reducible or replaceable.
- Set a Savings Target: Aim to save at least $50 to $100 per month. That’s $600 to $1,200 per year, a small amount that can really add up over time.
- Automate Savings or Investments: Put your monthly savings into a high-yield savings account or low-cost index fund. Remember, the longer you compound your interest, the faster your money will grow.
- Review Annually: Each year, check your budget and see if you can trim more.
Editor’s note: This article is for informational purposes only and does not constitute financial advice. Investing involves risk, including the possible loss of principal. Always consider your individual circumstances and consult with a qualified financial advisor before making investment decisions.
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