Hi-tech at a lower cost
SPENDING on technology is swallowing a big slice of household budgets as Australians continually upgrade their smartphones, internet services, cloud storage and other gadgets.
Controlling these costs is difficult for consumers who constantly crave more data and fresh features, but money experts say there are ways to stop the spending surge.
Buyologists founder Mike Chalmers said research had found that individual Australians spent an average $2300 a year on technology and communications, many households spent more on technology than utilities.
The key to saving money was researching products and prices online first, avoiding upgrades and flash new features unless they were really worth it, Mr Chalmers said.
“Don’t be the early adopter of that shiny new gadget – you’ll always pay way too much,” he said.
“Never pay for an extended warranty – it’s a losing bet on average, otherwise they wouldn’t happily offer you it.
“Buy the generic product – not the brand name.”
Olympic cyclist Matt Glaetzer has noticed his spending on technology increasing because “there is always something new coming on the market that is bigger and better, and it’s hard not to want it”.
He said he spent the most money on tracking and timing devices that gave him information he needed for racing.
Controlling the costs was “pretty hard, to be honest”, Glaetzer said.
“But one look at my bank account ensures I can’t always have everything I want.”
Data storage and usage have been growing rapidly, and some products bought a few years ago may no longer be necessary. For example, why stick with a pocket wi-fi device, which can cost more than $60 a month for 8GB of data, when your phone plan may offer cheaper data costs?
Smartphone plans today often cost about $100 a month and Neil Aitken, the founder of whatphone.com.au, said you could save money by avoiding contracts.
“If you’re not trapped in a contract, telcos actually drop the price they charge for data every six months,” he said.
Consumers should consider prepaid mobile plans, Mr Aitken said. “People associate it with teenagers and an inability to manage spending, but I run a phone comparison site and I use prepaid.”