The personal costs of improved technology.
Technology has become an integral part of our lives, affecting many different aspects. Our daily lives consist of the use of smartphones, computers, the internet, etc. The advanced technology has many benefits to our personal finances, such as empowering people to better manage their money, make informed decisions and improve their financial well being through accessibility, digital financial tracking and budgeting, automated payments, financial education, and resources and more.
With more advanced technology comes a higher ticket price. The technological advancements to our favorite items have come at a cost that we may not realize affects our budget in such a huge way, especially when you compare all the technology that you are paying for on a regular basis. Below are some areas of technological advancements that have changed drastically over the years and now is something that most partake in, subscribe to, or purchase on a regular basis.
1. Online shopping – With the technology advancements over the past few years, it has become increasingly easy to purchase all your needs online, everything from groceries, clothing, electronics, and more. This convenience can lead to monthly subscriptions and impulse buying, potentially causing a strain on your monthly budget.
2. Digital entertainment and streaming – With the availability of digital entertainment at our fingertips, it has significantly changed how people consume media. People are opting to cancel traditional cable packages to opt for multiple streaming services with more options. Aside from television streaming services, the same goes for music streaming services such as Apple Music and Spotify, as well as how people are transitioning to e-readers to have access to many more options, usually at a lower cost. When you add up the multiple digital entertainment and streaming services you subscribe to, you may find that because of all the options available, you are subscribing to more that you use on a regular basis, increasing your monthly budget.
3. Mobile phones – Mobile phones once were just a simple phone, used for basic calling. As technology advanced, so did the capabilities of mobile phones. As the technology changed, you were suddenly able to text, use an internet browser, connect to Wi-Fi, download apps for all your needs and more. With the advancements in the technology came the increases in the phone bills and increases in the price of the phone. Now most phone bills all have a data package, and if you’re phone is newer, chances are you also have a device balance on your phone as well as a possible protection plan. When mobile phones became popular, it was common practice that a person could get a phone for free and pay as little as $25 per month on a 3-year contract for service. Now with smartphones, you could easily pay $25 per month just for your device on top of extra charges for your data plan over a 2-year term. The significant advancement of mobile phone technology has essentially created a whole new budget category for families that earlier generations did not have to contend with and there has been no adjustment in wages to account for this new budget item.
4. Internet – Commercial internet access only started in the mid 1990s and similar to the advancement of mobile phone technology, internet has created whole new budget category for people today that earlier generations did not have to contend with. What was once a luxury for the few who could afford it has become a basic necessity that influences almost every aspect of our lives. To further add strain to household budgets it costs almost as much on its own or whether part of a bundle of services and unfortunately we pay more for this service than most of the developed world.
5. Interactive entertainment – Video gamers have witnessed the evolution of gaming. Once it was a matter of purchasing the console, some games, and any other accessories you might be interested in. Now, like most things, gaming has gone digital. Now you can purchase your video game, but now there are memberships required to play online, and some games require additional expansion packs.
6. Vehicles – Modern vehicles have adopted technology through infotainment systems, navigation, connectivity features and safety features. One of the more modern features is mobile apps provided through the maker of the vehicle. For example, Hyundai offers the Bluelink mobile app, where you can start your vehicle, change your settings, see your range, book service appointments, and more. Most are free for a period of time with the purchase of a vehicle, but then they require a monthly subscription.
It's easy to get carried away with taking advantage of modern technology and the ease it provides to our daily lives, but it’s important to ensure it fits within the budget.
If adopting technology in multiple areas of your life has led to your budget getting out of hand, there are options.
If you are looking for advice, or a second opinion about your debt, it does not cost anything to talk about your options. Every financial situation is unique and viable options can differ from person to person. A conversation free of judgment is the first step to determine options for debt that make sense to you. For a free consultation, please call or text (506) 645-1814 or email jaime@tackledebt.ca; or visit www.tackledebt.ca.