Editor’s note: This article was first published in September 2015. The laptop models and prices (265-299 euros, Windows 8/8.1), the Sony Xperia Z3, the ‘under 200 euros’ phone range and the author’s three-year-old laptop all reflect the Spanish market in 2015.
Sticking to old buying habits can make you spend more money than you need to, paying a higher price for products we could find cheaper. And when it comes to technology, most people buy a higher-end model than they really need.
Let’s go through a list of things on which you can save a few thousand euros over the course of a year, along with some buying habits that will add up to exceptional savings over your lifetime. We previously published an article on the 10 most stupid things to spend money on, and we also shared 11 ideas for saving a large amount of money every year with some unconventional savings tips.
In the end, it all adds up, and in personal finance no expense is too small if it can be avoided, because remember that a small leak can sink a great ship. Let’s start with the most common tech products that practically everyone spends money on, and where we can save a lot.
What are you spending too much on, and where could you save?
1. Smartphone and tablet cases, covers and accessories
Buying accessories for our gadgets in a shop can mean paying anywhere from 50% to 100% more than if we buy the same products online. From memory cards to cases and stands, the price difference can be enormous, and there’s no need to explain why we find them cheaper online.
Take a look at the accessory sections of large online retailers such as Amazon and compare their prices with those in physical stores.
2. Laptops
What’s the difference between a €700 laptop and a €250 one? Probably a lot, but the truth is that few people will notice it unless they need it for fully professional use. Personally, I never spend more than €350 on a laptop.
This article is being written on a laptop that cost me €299 three years ago. Since I’m not a graphic designer or an audiovisual professional, it has served me perfectly every day for years. And frankly, I don’t think most people use a laptop any more than I do.
Here are a few laptops for under €300 that are already more advanced than my Medion:
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HP G3 Pro – 15.6″ laptop, 4 GB RAM, 500 GB HDD, AMD Radeon HD 8210, Windows 8 — €265
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ASUS X553MA-BING-SX451B – 15.6″ laptop, Intel Celeron N2840, 4 GB RAM, 500 GB HDD, Intel HD Graphics, Windows 8.1 — €278
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Lenovo G50-30 – 15.6″ laptop, 4 GB RAM, 500 GB hard drive, Windows 8.1 — €299
3. Smartphones
Exactly the same thing happens with smartphones. Most young people use them to go online, use WhatsApp and little else, although they also want a good camera. In my case, I did want the best smartphone with excellent camera quality, so I went straight for the Sony Xperia Z3 (a little treat I gave myself for sticking so well to my savings plan). But the truth is that there are mid-range phones with 13-megapixel cameras that cost less than half the price of an Xperia, and much less than an iPhone.
I won’t name any brands, but there are plenty of phones for under €200 that, for the way most people use them, won’t feel very different from a high-end model.
4. Extended warranties
Paying for extended warranties on the products we buy is rarely worth it, because in most cases these warranties don’t even cover most of the common reasons you might need them for. According to Murphy’s laws, if a product is going to break, it will do so right after the extended warranty runs out. This kind of warranty is usually just extra income for the seller.
5. Gambling
Whether we’re talking about casinos or the lottery, the truth is that if you save the money you would have spent on them, in 20 years that savings will be a lottery prize in itself. It’s not worth throwing money away on odds so low that they depend entirely on chance.
6. The wedding
Many people spend all their savings on a lavish wedding. Love won’t last any longer or shorter depending on how much the celebration costs. Be as frugal as possible on that day, because many couples spend practically all their savings on it. Some even go into debt, so that by the time they divorce they’re still paying off the wedding loan.
7. The first baby
They say the biggest expenses come from emotions, and there’s probably nothing more emotional than bringing a lovely baby into the world. When the baby arrives, many parents spend far too much on a cot, a luxury pram and all kinds of toys. Nowadays most of the things a baby needs can be bought second-hand, saving a considerable amount of money. The child will grow up fast and won’t remember whether they slept in a new cot or a second-hand one.
8. Overspending on cars
As we’ve said dozens of times, a car is the worst investment we’ll make in our lives. It’s the biggest depreciating “asset” we’ll ever buy, so the more money you spend on a car, the more money you’re throwing away. And the more you spend on accessories and extras, the more you throw away.
We also sometimes think that keeping an old car is more expensive than buying a new one, which isn’t entirely true. See: Why keeping your old car pays off more than buying a new one
9. Buy the things you use regularly in bulk
Sometimes you have to run the household finances like a business. Let’s look at the products we buy regularly that have a long shelf life, such as cleaning products, toilet paper and so on.
These products can be bought in bulk at large retail stores, saving money on them. We spend more up front today, but we won’t need to make lots of small purchases later. Remember, it all adds up.
10. Use discount coupons
It’s a matter of regularly checking the offers from companies that provide discount coupons, because you’re almost certain to find discounts of 50% or more on things you were going to spend money on anyway, such as car repairs, the hairdresser, beauty treatments and so on.
11. Use price comparison sites
Sometimes I have to travel for work, and personally, Booking (a hotel price comparison site) has saved me a lot on hotel nights. Once I was about to stay at a hotel that charged €85 a night. I went to the hotel café and, from there, booked the room for €42. Bear in mind that hotels would rather fill their rooms, even if guests pay less, than leave them empty, so you’ll see room prices fluctuate depending on the time of day.
We could give hundreds more money-saving tips, but I don’t want to be repetitive, since we’ve been sharing them in other articles: bundle your landline, mobile and internet services; renegotiate your insurance by moving all the family’s policies to the same company; postpone big purchases until the following month; and limit spending on eating and drinking out, which is one of the biggest expenses a person can incur.
And above all, if you have credit card debt, pay more than the minimum, because that’s not just saving: it’s an excellent investment.
See also: How to save more than €20,000 extra in 10 years with this simple strategy
Featured image: PattayaPatrol, CC BY-SA 4.0, via Wikimedia Commons.
