THE LIFE

March 8th, 2011

The True Cost Of Your Gadgets

motorola-droid-x

We all want to make sure we keep our gadgets up-to-date, but have you stopped to think about the cost after purchase?

In a recent Smart Money article, the author explains how much our treasured gadgets cost us during the products useful life. I took a few hot items from the list that we all have or would love to have and shared them with you, take a look.

Smart Phones (Total Cost: Up to $3,400 over two years)

Over the course of a two-year smart phone contract, the average buyer pays $2,140 for their plan, plus talk time, data, and extras, according to BillShrink.com, which tracks the wireless industry. That’s up 13% over the past three years. Then there’s the tax bill. On average, wireless service is taxed at about a 15% rate, with rates higher than 20% in Washington, Nebraska, Florida and New York. Want that hot new app? Prices are rising there, too — up 43% over the past year to about $2.85 per, according to KnowYourCell.com, which tracks the mobile phone industry.

Video Game Systems (Total Cost: About $160 to $300 per year, initial console purchase not included)

Nintendo, Sony or Microsoft, haven’t introduced new systems lately, they are rolling out new, pricey accessories. For $150 each, Microsoft’s Kinect motion controller for Xbox 360 has sold more than 2.5 million units since introduced last month, for example. The average gamer also buys four games per year at an average cost of $40 each, although prices run up to $100. And then there are the extra remotes. The Nintendo Wii system, for example, comes with only one remote controller, even though up to four people can play; each remote is $30 or more.

Owning A Car (Total Cost: In the first five years, drivers can expect to spend $3,600 per year)

A car’s true cost of ownership rose about 15% this year, which means that popular car models like the 2010 Toyota Camry and Honda Accord cost a whopping 60% more than the sticker price over the first five years of ownership, according to Edmunds.com. That includes an expected $4,000 on maintenance and $6,000 on insurance. Then there are the incidentals, like parking in a major city ($5,000 per year), or interest on a car loan (say, another $1,600). “Many buyers are in a state of denial, watching a car ad on TV and thinking ‘oh I can afford that’,” says Phil Reed, a senior editor at Edmunds.com.

E-Readers (Total Cost: Voracious readers and media hounds should budget up to $785 extra per year)

The number of consumers buying e-readers, like the Kindle or Nook, tripled this year, to roughly 6.4 million, according to the Consumer Electronics Association. Once they own the device, consumers buy about three books a month, according to Marketing and Research Resources. That totals about $300 to $380 per year on books, plus the cost of magazine and newspaper app downloads (for example, a monthly subscription to The Wall Street Journal costs $15; the most-downloaded magazine, the New Yorker, costs $3 per month). Cases and screen protectors start at $15 and go up.

Who would have thought that we spend this amount of money on these simple day to day items? Be sure to read the article for ways to contain and reduce cost of your everyday gadgets.


About the Author

Corey Phillips
Born and raised in Queens, NY, Corey is a working finance professional in Indianapolis, IN. A graduate of the University of South Carolina, Corey obtained a dual degree in Finance and Management. In addition to his corporate career, Corey possesses a passion for helping others realize their potential and authority.




 
 

 
closet

Find the Value: Take Advantage of Your Possessions

To kick-off the new year, I sat down and chatted with online shopping expert, Michelle Madhok. Michelle took the time out to offer us some key details of how to value items we already have. In addition to being founder of SheFi...
by DeAndra Harrison
190

 
 
3d rendering of handsets from an old vintage phone

How Do Small Collection Accounts Impact Your Credit Score?

Fortunately, there is one recent change to the world of credit scoring concerning small debts, which are sometimes called “nuisance” collection accounts. Fair Isaac, creator of the FICO score, has rolled out to all three cr...
by Socialtik Mag
233

 
 
OLYMPUS DIGITAL CAMERA

Creating a Personal Finance Statement

If you own a small business or are self-employed, this guide will help you track income and expenses on a regular basis. Entrepreneurs tend to create personal financial statements for one of two reasons. Either they love number...
by DeAndra Harrison
65

 

 
jeff-campbell-rockin-cxl

Fall Style: Jeffrey Campbell Shoes

Vintage inspired, runway-trending shoes by Los Angeles based designer Jeffrey Campbell, are this season’s must-have style pick. The family owned shoe line has been around for 10 years. It credits it’s inspiration to...
by Genel Ambrose
80

 
 
200398520-001

Is Marketing a Money Drain or Money Fountain?

Marketing is an essential part of running a business, often overlooked or poorly implemented due to busy-ness of the Owner, this gets looked upon as money draining out of the business. On the other hand, if done right and imple...
by DeAndra Harrison
85

 



9 Comments


  1. plze keep working!!!!!!!!!!


  2. In other recent news, one of Audemars Piguet Royal Offshore watches was stolen by Bulgarian thieves, but they were caught and the watch was returned. According to authorities, the thieves were unaware of the jewel they had stolen and sold it to a pawn shop for only fifty euros, a very sad prize for a watch worth 36,000 euros.


  3. I don’t even know how I finished up right here, however I thought this put up was great. I do
    not realize who you are however definitely you’re going to a famous blogger when you aren’t
    already ;) Cheers!


  4. Let us engage in the function of of particular supplies, this kind of as designer luggage are not low cost, and offer you high reductions a nasty notion is as a way to earn earnings for anyone. The good ones maintain the characteristics of the particular authentic sorts therefore they value in excess of inadequate men and women good quality replications .


  5. who you are however definitely you’re going to a famous blogger when you aren’t
    already ;) Cheers!


  6. Excellent world wide web site. I get a ton of observe this piece of writing. Your needs carrying out a welcome. Thanks for the information.


  7. needs carrying out a welco


  8. You make it entertaining and you still manage to keep it smart.


  9. Well I am so excited that I have found your post because I have been searching for some information on this for almost three hours! You’ve helped me a lot indeed and by reading this article I have found many new and useful information about this… Replica Watches



Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

Twitter Users
Enter your personal information in the form or sign in with your Twitter account by clicking the button below.


thru 9/26 - Fall Sale. 30% Off select styles. Disc