Technology Makes It Harder To Save Money 320
Hugh Pickens writes "LiveScience reports that a survey conducted for the American Institute of CPAs reveals that while more than half of U.S. adults believe technology has made it easier to spend money, just three percent think it has made it easier to save. The research found that Americans who subscribe to digital services spend an average of $166 each month for cable TV, home Internet access, mobile phone service and digital subscriptions, such as satellite radio and streaming video — the equivalent of 17 percent of their monthly rent or mortgage payment. Those who download songs, apps and other products spend an additional $38 per month. 'Our gadgets and connections can bring benefits like mobility and efficiency,' says Jordan Amin. 'But they can also bring financial challenges, like taking money that could go to savings, for instance, or contributing to credit card debt.' If facing a financial crunch, Americans would rather change what they eat than give up their cell phones, downloads or digital TV services. Asked to choose the one action they would most likely take in tight time, 41 percent said they would cut back on eating out, 20 percent said they would cut off cable TV, 8 percent said they would end cell phone service and 8 percent said they would stop downloading songs and digital products."
Re:you can save a ton of $ (Score:4, Interesting)
It depends on where you live. $200 a month is 2,400 a year. When it's 1-2% of your income, it probably doesn't matter. So, you do a little less saving. When it's more like 10%, then it's a problem because you greatly reduce your ability to save.
Saving money is like Losing weight (Score:5, Interesting)
It matters less what you are doing with the flow of your metric, and more on your net balance.
Whether I spend $300/mo on digital services or buy a bigger house than I need, or a nicer car than is necessary for my requirements, it's the same dollar at the end of the day. Americans are gaining weight because of easy access to high-calorie food that is made to be appealing through advertising and instant sensory gratification. Americans are not saving because our entire economy is based on spending as much as possible on things which are made to be appealing through advertising and instant sensory gratification.
Attitude (Score:5, Interesting)
Really what has to happen is that people have to decide they aren't going to sign contracts for luxuries. My income has fluctuated so wildly over the last several years that I absolutely will not sign a contract for a luxury. Sure I can afford a $70 a month phone now, but what about 1 year from now? So I go with cheaper, non-contractual alternatives. I pay $37 a month for Virgin Mobile but I can drop it any time and go with a cheaper alternative (TracFone) or nothing at all. For awhile I dropped Netflix, stopped watering my backyard, stuck with TracFone, etc to minimize my monthly expenses.
Contracts lock you into a particular life style that you may not continue to be able to afford. You need to be able to cancel services as quickly as you can lose a job.
People can have nice things even without being rich, but it's the effort to have all the nice things all at once that keeps people in debt and poor. Once the house is paid off, that's $1200 a month I'll have for other nice things. In the meantime, the nice thing I have is a nice house.