In these rough economic times, most people are forced to be more selective about where and how they spend their money. For the majority of middle and lower class citizens, some sacrifices are necessary in order to keep paying the bills and in order to live a good life. But with technology progressing faster than ever, it can be very tough to resist the urge to go out and splurge on the latest gadget. In reality, the majority of these gadgets will have newer, better models within the next year or two, which generally makes buying these products a bad decision. This raises the question, what gadgets are worth dipping into your savings for?
Simply put, the answer to that question depends on a number of variables. First, you should consider how much savings you have, and what kind of interest rate you are earning on your money. If you are not happy with your interest rate, it’s worth finding the best ISA on the market. Individual savings accounts, or ISA’s, offer competitive rates and significant tax advantages, and most financial advisors will recommend you open an ISA if one is available to you.
Next, you must weigh your options. Think about the gadget you have your eyes on, and think about how it would improve your life. For example, if you’re looking at a new smart phone, think about the time you could save by conducting internet research on-the-go, and the enjoyment you could find in staying connected to your friends, playing games, checking the news, etc. whenever you please. Next, compare that increase in your productivity and/or enjoyment to the money you would spend on the item, plus the money you would lose by not collecting interest. Depending on your savings rates and on the price of the item, that number could be very small or rather significant.
Of course it can be hard to place a dollar value on an increase of productivity and/or enjoyment in your day to day life, but do your best. The point here is to recognize that most gadgets simply will not be worth the cost if you think about it in this way. For example, buying a brand new top-of-the-line gaming PC setup might sound appealing to you, but how much is it really going to improve your life, compared to how much money it will cost you? Remember to think about the loss of earned interest, as well as the upfront cost of the item.
In the end, we cannot tell you what specific gadgets are worth spending your savings on. Ultimately it depends on your individual situation and needs. In general, however, some devices are typically worth taking a chunk out of your savings to purchase. Some of these items are smart phones, laptops, and cameras. Devices like TV’s, gaming consoles, and new trendy electronics items are rarely worth the cost.