How to Afford New Technology

It can be great to keep up with the latest technology. Whether that means a new desktop or laptop computer, a new mobile device, television, set top box, camera, fitness device or music player, there are so many things that we might want to keep up to date. The problem is that because there is so much that we may want, it will get very expensive to keep it all up to date. However, things do seem to go out of date very quickly and so it is always tempting to get the most recent things. This is especially true if what we have does not do everything, we want it to or if it breaks. It can be good to know how to finance this though as we could be regularly buying updated items. There are different options and it is worth considering them and thinking about which might be the best for you.

Loans

Some people will borrow the money in order to make the purchases that they want. This can often be a fast solution, especially if you use a credit source you already have arranged such as an overdraft or credit card. If you have to organise a loan it will take a bit longer, but it can be quicker than some other ways of saving. If you have a poor credit record then taking out a loan may not be an option that is suitable for you though. You may not be able to borrow the money at all or you may only have the option of very expensive borrowing. Even if you do not have a poor credit record and can borrow easily, it will still cost you money to borrow. There will be interest to pay on any borrowing and there may be fees as well and it is therefore worth thinking hard about whether you want to pay that extra money or whether you would rather wait. It can be tricky to decide so it can be worth calculating how much extra you will pay and then you can decide whether you think that is worth paying or whether you would rather look for an alternative method.

Savings

If you have savings then it could be worth using them to pay for your new technology and then repaying them afterwards. This will not be much different to making repayments on a loan but there are advantages. Firstly, it will not cost you so much as although you will miss out on the interest you would have otherwise have got on your account, this loss will not be as much money as you would have to have paid out on loan interest. It is also more flexible as you will not have to always put money back into the savings account, if you have a tricky month then you could spend it on other things. While it is important to save, having that flexibility could be very helpful.

Some people like to hold onto their savings and borrow money, even though this is more expensive. This can be for a number of reasons such as them no calculating the cost and not realising it is dearer, them having the money put aside for a specific thing or it being so hard to save they want to keep the money. It should be carefully considered that it will be possible to save again, but holding onto savings is likely to be much more expensive than using them in the place of borrowing. Once the savings are gone you should be able to replenish them over time but if you need money before then, you can always borrow but hopefully you will not need to.

Save up

If you have no savings, then an option could be to save up for what you want. This is not always that easy, as there is often something else that we would like to spend our money on. However, if you set your mind to it, you should be able to give up some luxury products so that you have more money available to save instead. Make sure that you think about what you are aiming for and then you can decide where to prioritise your spending and what you are prepared to cut out in order to save up more.

Gifts

Some people are lucky enough to get really generous gifts when they are celebrating a birthday or perhaps Christmas or at other times of the year. This means that there could be an opportunity to ask for new technology for gifts. Now obviously some pieces will be much more expensive than one person can afford. But it might be possible to ask people to get together to pay for something or to give you money towards it.