How to Manage Your Finances If You Want to Upgrade Your Gadgets

By Dr. EM @QUE.COM on July 5, 2024

With proper care, gadgets like laptops and smartphones can last for years. In general, however, the lifespans of these devices are getting shorter due to factors such as rapid technological advancements and more frequent usage. This means that if you want to continue enjoying the benefits of modern gadgets, you need to get a better or the latest model or install hardware upgrades.

However, it's no secret that upgrading gadgets can be pretty expensive. That being said, the good thing is that if you manage your finances wisely, you can make all the necessary gadget upgrades you want without getting into debt. Here are some things you can do:

Set a Budget

It can be tempting to splurge on the latest technology, but doing so without knowing how much you want to spend can lead to overspending. Thus, setting a dedicated budget specifically for your upgraded gadgets ensures that you can enjoy your purchases without compromising your financial health. Take the time to assess your financial situation and determine how much you can comfortably allocate toward electronics. Consider factors such as your current income, expenses, and savings goals to ensure your "gadget budget" fits within your overall financial plan.

Next, research the cost of the gadgets you're interested in and set a realistic spending limit based on your findings. Remember to account for any additional expenses associated with the upgrades, such as accessories, warranties, or subscription services.

Once you've established a budget for your upgraded gadgets, stick to it diligently. Avoid the temptation to go over your budget or make impulse purchases, even if there are tempting deals or promotions available.

Allocate a Fixed Portion of Your Monthly Income for Your Gadgets

Once you have a budget in place, the next step is to allocate a portion of your income specifically for gadget upgrades. The amount should be a realistic figure that fits comfortably within your budget. Assess how much you can afford to set aside each month without affecting your ability to cover essential expenses and other savings goals. If you need some guidance, consider adopting the 50/30/20 system. This allocates 50% of your income to needs, 30% to wants, and 20% to savings and debt repayment. Within the 30%, designate a specific portion for your gadget fund.

Remember, consistency is key. By regularly setting aside a portion of your income, you'll gradually accumulate enough funds to cover the cost of the latest gadgets without financial strain.

Open a Digital Savings Account with a High Interest Rate

An effective way to quickly grow your gadget fund is by opening a savings account with a high interest rate. Many digital banks offer high-yield savings accounts with competitive interest rates that can help your money grow faster. In particular, Maya has several banking products that offer high interest savings Philippines' consumers can benefit from. First, there's Maya Savings, which offers up to 15% p.a. interest credited daily. Maya also Personal Goals, which lets you organize your money for your gadget upgrades while giving you up to 4% interest p.a. Time Deposit Plus, on the other hand, has a 3.5% p.a. base rate that can be boosted if you hit certain goals.

Use Reward Points and Cashback Offers

If you have a credit card, you can take advantage of its reward points and cashback offers to offset some of the cost of your gadget upgrades. These rewards programs allow you to earn points or cashback on your everyday purchases, which can then be redeemed for statement credits, gift cards, or merchandise, including electronics. Before making a purchase, however, check if your credit card offers any special promotions or bonus rewards for spending in specific categories, such as electronics or technology retailers. Additionally, consider getting or renewing a credit card with a generous sign-up bonus, which often includes additional points or cashbacks after meeting certain spending requirements within a specified period.

To maximize your rewards, use your credit card for fixed expenses and bills but be sure to pay off the balance in full each month to avoid interest charges. When you strategically leverage reward points and cashback offers, you can significantly reduce the out-of-pocket cost of your gadget upgrades.

Look for Bundle Packages

When shopping for new gadgets, keep an eye out for bundles and promotional offers that can help you save money. These packages can provide significant savings compared to purchasing each item separately. Many retailers offer even bigger discounts or freebies when you purchase multiple items together, such as a smartphone with a case and screen protector, or a laptop bundled with a mouse, headphones, and other paraphernalia. They may also offer financing options or installment plans that allow you to spread out the cost of your purchase over time, making the payments more manageable.

Before committing to a bundle package, compare prices and features to ensure you are getting the best value for your money. Consider whether you actually need all the items included in the bundle or if there are any alternative configurations that better suit your needs.

Managing your finances wisely is key to affording the gadget upgrades you want. Follow the above-mentioned tips to make your gadget upgrades more affordable and sustainable.