Posted by Mike Smith :: November 7, 2008 @ 6:09 am

Discussions about frugal living and cutting back unnecessary expenses often question whether cable television is a want or a need. While the case for basic cable, particularly in rural areas, being a need is sometimes conceded, the premium services and add-ons are almost always categorized as wants. You might find it strange that while I still categorize a Digital Video Recorder (DVR) as a want, the financial benefits of owning one may leave you better off than if you passed by this apparent luxury item.

Having a DVR can save you both time and money. The time aspect is two-fold. First, you can watch television on your own schedule. If your favorite show airs on a night when you could really use some sleep to recover from a hectic day, you can rest assured that it will be waiting for you. Second, you can watch programs in roughly 2/3 the time by skipping the commercials. Depending on the number of hours of television you watch per week and the value of your time, this can quickly add up to a significant amount of money. For me, the nominal monthly cost of a DVR pays for itself in saved time well within the first hour of using it.

While skipping over commercials saves you time, it also limits the marketing messages that reach your brain and drive your impulse to spend. By keeping commercials out of sight and out of mind, you limit their influence on your entire household. Even if you can resist the temptations of broadcast advertising, your children may not be as able to. How often were your kids getting along just fine until they discovered the latest toy that they couldn’t live without? Even if messages only reach you and your family on a subconscious level, reducing that exposure may help to reduce your spending.

A DVR can be one of those items whose small costs permit significant savings in time and money. Few electronic devices have added so much to my life and profoundly improved my normal behavior. It may not have the same effect for everyone, but I suspect that most people would find a DVR beneficial to their lives and their finances.

What are your experiences with DVRs? Do you prefer a generic DVR from the cable company, or a branded one, such as a TiVo?