The American Institute of CPAs conducted and interesting and enlightening study about how technology affects most Americans’ finances.
Their results clearly demonstrate that even though technological advances have made life much more convenient, they’ve also made life more expensive.
During an economic downturn, the few extra dollars that technology costs you can really have an impact on your quality of life.
Fortunately, being aware of the hidden costs of the digital age is the first step to curbing them. You may never be able to (or even want to) unplug entirely, but there may be some habits you can kick to save your family a couple bucks.
1) High-speed Internet
According to the study, U.S. households spend approximately $166 per month on Internet access, cable TV and mobile phone service.
A major chunk of that expense comes from high-speed Internet access. Take a look at your last cable bill and peruse the breakdown of expenses.
It’s possible that you’re paying a fee for Internet, a fee for wifi, a fee to rent your modem and another fee to rent your wireless router. That’s a total of four individual places that your cable company is gouging you for Internet access.
To limit these expenses, invest in your own cable modem and wireless router so you can stop paying monthly fees to rent hardware.
Double check your Internet speed and make sure you’re using the slowest plan that you need. You may be paying a premium for super high-speed Internet access – a service generally reserved for businesses.
2) Mobile phone data
If you have a smart phone like over 50-percent of U.S. mobile phone users, then you probably pay for a data plan in addition to your mobile phone plan.
Cell phone bills have exploded in the last couple of years, and bloated data plans are mostly to blame. Chances are you aren’t even using a fraction of the data that you’re paying for. Check on your data usage and reduce your plan if you can.
You can also save by using a coupon like a Verizon promotion code. Hunt for deals and take advantage.
3) Online shopping
It’s just so convenient. With one-click purchase options like the one offered by Amazon, you can spend hundreds of dollars in an instant and wait for the latest boondoggle to arrive by mail.
American households hemorrhage money through online shopping. If you’re an addict, admit you have a problem and cut up the credit cards.
If you’re not willing to go out and buy something in person, with cash then it’s probably not worth having.
4) Digital media
Filling up your hard drive with iTunes movies and hot new singles is an excellent way to go broke.
Instead of purchasing each individual piece of media, join a subscription service like Netflix or Hulu+. To meet your music needs, try free services like Spotify and Pandora.
5) Apps and gaming
Just like online shopping, online gaming can be an insidious expenditure.
Thanks to the digital revolution, it’s never been easier to buy and play with expensive computer games and diverting applications.
Making matters worse, many of these apps and games include in-game pay features that charge your account directly at the click of a button.
Always read every warning message before you enter your password and keep your online gaming to a minimum.