My husband and I have been married for 25 years and we NEVER had cable. I know, I know. But we were always saving for something big that we wanted more than TV and my motto was always AVOID MONTHY BILLS as much as possible. When the kids were little I wanted to work as little as possible, when they were bigger I didn't want them watching to much TV and now that they are in college and HS we have been able to pour all that TV savings into nice college funds.
I must say however, that Netflix has not been a great thing in our house. My DS will pick a show and watch constantly till it is done. Sooooo much time in front of the set, and such a distraction for a very distractable boy. The fact that there are no commercials just keeps him glued to the set. Also the available content is much more R rated that we have ever had in our home.
I would suggest trying to continue to pay the cable $$$ to yourself in the form of savings of some sort. It really is a great motivator.