Six ways to save money on a tech purchase

Excited about all the shiny, new tech out on the market but coming up short on finding a good deal? Technology has become an inevitable part of modern-day life and buying new tech devices can be costly.

This guide explores six ways to save money on technology purchases without compromising on quality.

Be realistic about needs and feature requirements

Having a device with cutting-edge tech specs can be tempting, but choosing wants over needs can lead to overspending. Before making a purchase, it's a good idea to think about device specifications to determine what's essential versus nice-to-have optional extras.

When considering smartphone features, for example, the needs versus wants list might look something like this:

• Essential needs. Sufficient storage, 5G capability, long battery life.
• Nice-to-have options. A good camera, wireless charging, water resistance.

Identifying the essential features will help in finding a device that meets requirements without the hefty price tag. Sometimes, a current device may still meet those requirements, so it’s worth asking a few key questions:

• Can it still run the apps that are being used?
• Is the battery life sufficient?
• Would repairs or upgrades cost less than buying an entirely new device?

Upgrades like replacing a battery on a laptop or a screen on a smartphone can significantly extend a device's life.

Set a budget and stick to it

Creating and sticking to a purchase budget is an important step to saving money when buying tech, and it can help prevent the pitfalls of budget creep.

Budget creep is the gradual increase in spending above the initial budget set, often caused by the temptation to have additional features included on more expensive models that are nice to have rather than essential.

How to avoid budget creep:

• Set a budget with a ceiling or upper spending limit.
• Prioritize features based on necessity.
• Resist the urge to compare potential purchases with more expensive models.

When trying to set a budget, it can help to know more about the desired tech product. Consider these steps:

1. Research the average cost for the desired device from multiple vendors.
2. Look at additional costs like accessories or software.
3. Set aside a buffer for unexpected expenses that may arise.
4. Create a spending limit that works within one's financial situation.

Keep an eye out for tech sales

Delaying a purchase or timing it around promotional periods, such as Black Friday or the holidays when tech devices may be on sale, plays a key role when looking to save money on technology.

Consider these shopping periods that often feature a wide range of deals:

• Black Friday and Cyber Monday
• Back-to-school season
• Amazon Prime Day
• End-of-year clearance sales
• Major holidays like Memorial Day and Labor Day

Shoppers who are looking for an older model can sometimes find good deals when new models are launched as well, as tech companies and retailers look to clear out stock. Be on the lookout for new tech announcements to get a jump on potential sales.

Use price comparison tools to find the lowest prices

Price comparison websites take the hard work out of trying to find online shopping deals on tech. Some price comparison websites even offer tools to track price changes and allow alerts to be set for price drops. For example, the PayPal Honey shopping extension will search for the lowest price on an item and find available coupons or promos as well.

Consider buying a secondhand or refurbished product

Unboxing a newly purchased tech device is exciting, but buying one second hand may offer substantial savings. Secondhand products can be found on popular online marketplaces or on tech forums that specialize in the type of product desired.

Some pros and cons of buying used tech may include:

• Pros: Savings on tech purchases, environmentally friendly.
• Cons: Limited warranty, potential undisclosed damage.

Shoppers who don’t like the idea of buying a secondhand tech device but are not willing to pay high prices for a brand-new device might want to consider buying refurbished tech.

Refurbished tech products are pre-owned but restored to like-new condition. They offer a compromise between buying secondhand and buying new — and they may also include a warranty from the original manufacturer to provide peace of mind in case anything goes wrong.

Refurbished products are often less expensive than new products. But some tech products are refurbished to a higher standard than others. So, it’s important to investigate how the product was refurbished.

Make the most of rewards and cash back programs

Using rewards and cash back apps offer extra ways to save on tech purchases. There are several programs that allow users to get cash back for shopping online.

For example, PayPal users can select and save cash back offers in the PayPal app to earn on eligible purchases made through the platform.¹ And it can be integrated with other reward programs to maximize savings on tech purchases.

Many retailers offer loyalty programs that provide exclusive offers to members, which can maximize one's tech-buying power. And coupon stacking can also be a savvy way to spend less on tech by combining multiple coupons or promo codes on a single purchase.

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