D is for Digital Technology and it’s Drain on Finances.

 

Most of us will agree that digital technology has woven itself into our life becoming an intricate part of our daily existence. We now have access to an “on demand life”, where with a push of a button we can stream movies, buy music, books, magazine subscriptions, video games and apps galore.

As technology seemingly makes your life more enjoyable and simpler it may make saving money more difficult. You may be spending excess money on technology that could go to savings or toward paying down credit cards. It is important to be aware of the drain on your finances and make sure the benefits outweigh the cost.

Start by looking at how much you are spending on digital technology including services and new gadgets. Evaluate your spending and decide where you can lower some of the cost and put that amount into your savings. By doing a digital audit regularly you may be able to avoid paying for services no longer needed. You also may find that those ninety-nine cent purchases add up more quickly than you realize. Perhaps downloading 15 apps or songs a month instead of thirty would help your savings account.

Technology is here to stay, but equally important is our need for a happy and healthy financial future. Enjoying digital luxuries without allowing them to become a “drain” on your budget is a healthy start in planning a more secure financial future.

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About Ann Zuraw

Ann Zuraw, the voice behind "Chicks, Chat and Change", is a Certified Financial Planner (CFP®), Chartered Financial Analyst (CFA®), and Certified Divorce Financial Analyst (CDFA™).If you have comments on this post contact Ann Zuraw

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