The Financial Implications of Technology

The Financial Implications of Technology

You can’t go anywhere these days and not see people glued to some device. Some of us wonder what we ever did without this modern-day “must have”, but love ‘em or hate ‘em, mobile (aka smart) phones are here to stay.

With all good things, there can be a downside. The cost of mobile phones and other devices is often not in the purchase but in the upkeep, and as many teenagers are discovering (many too late), mobile phones can lose them a good credit rating even before they’ve left school.

Numerous young people (and some not so young!) get caught up in the advertising hype, and think that they must have the latest toy with all the bells and whistles only to find out that their cheap monthly rental is a cover for restrictive terms.

The result of these savvy sales deals is that many thousands of Australians are talking themselves into unnecessary debt – a high price to pay for staying in contact with friends.

However, used sensibly, mobile devices can be very cost-effective. It all comes down to making sure you’re aware of all the costs associated, and controlling your habits.

Easier said than done when peer pressure abounds, but there is a smart alternative – choose prepaid. You know how much you’re paying upfront and when you run out of credit, you simply “buy more time”… and you stay in control.

Other suggestions for managing your mobile device include:

  • Be sure of what you’re signing up for… read the small print and ask questions;
  • Ignore the advertising spin that tempts you to constantly upgrade to the latest model;
  • Use a PIN to access your phone. This stops others using it without your consent and is particularly helpful if you lose your phone.

 

Next Steps

If you are in the market for a new mobile device and are bamboozled by the seemingly hundreds of options, there is a plethora of comparison websites available. These compare the phones, plans and telecommunications companies. Some provide calculators – type in your current usage and you receive a comparison of the alternatives available.

For information about cashflow and money management please contact us on 02 9633 5530

Sacha Loutkovsky
sacha.l@orionfg.com.au
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