From overpriced gadgets to services that increase in cost every year, techy purchases can eat up lots of your spending. And while some of these expenses are unavoidable, many people fall for common technical traps that take money out of their wallets for no good reason.
“Recommended” options, outdated advice, and poorly explained services are all methods that companies rely on to take your money. Avoid these “default” behaviors to recognize where you don’t need to spend, and you’ll have more cash for items that actually deserve it.
Renting your ISP’s modem/router
Own and control your equipment instead
When you sign up for an internet plan, the ISP wants you to rent its modem for a monthly fee. This results in another revenue stream for the company, but it isn’t a good deal for you.
Replacing your ISP’s router with something more customizable has lots of benefits: a more powerful signal, fine-tuned options control, advanced features, and the option to install your own firmware.
Importantly, it’s also a cost savings. As an example from my area, Comcast Xfinity charges ~$15/month to rent its combo modem/router. If you buy a decent router and modem for around $100 each, you’ll start saving money after 13 months.
It’s not difficult to set up your own router and modem, and then you’ll have more control over your network. Don’t fall for the “recommended” option where you pay your ISP forever for what should be a one-time purchase.
Automatically-renewing subscriptions
Pay even when you forget
For your “convenience”, every subscription renews automatically, in hopes that you’ll forget and pay for something you don’t need anymore. Signing up for almost any free trial requires you to provide your payment details for the same reason.
It takes intentionality to fight back against this. The most important trick for avoiding useless subscriptions is to cancel each one as soon as you begin it. With the exception of Apple subscription trials, every service I’ve canceled lets you keep using the subscription until the period runs out.
When you sign up for a trial and aren’t sure if you’ll want it past the free period, cancel it. Right after you sign up for an annual subscription, disable auto-renewal. When the period ends, you can evaluate if you still need the subscription.
If not, you avoided wasting money. And if you want it back, it only takes a moment to sign up again. Make sure you aren’t paying for subscriptions that aren’t worth it in the first place, either.
Unnecessary mobile carrier expenses
Mobile service doesn’t have to bankrupt you
A lot of people go with one of the big three mobile carriers (Verizon, AT&T, T-Mobile) because they’re the best-known. But you can save a lot of money by breaking out of that norm and going with a cheaper carrier.
I’ve been using an MVNO (mobile virtual network operator) since I had my own phone plan, and I’d recommend them to everyone. You don’t feel like you’re on a lesser network, and you will save hundreds a year.
Mint Mobile has been great for me since 2020. Visible (from Verizon) is one I haven’t used personally, but it’s a good option if you want unlimited data.
Speaking of which, outside the core cost, it’s easy to spend more money than you need with your carrier. Most carriers want to push you toward “unlimited” data, but this isn’t necessary if you use a moderate amount per month. It’s worth reviewing your historical data usage, reducing how much data you use, and adjusting your plan tier accordingly.
Useless software
Don’t pay for what you can get for free
There are entire classes of software you shouldn’t pay for, but people continue to because of advertising or outdated understandings. Two of the biggest categories are antivirus software and identity theft prevention tools.
You don’t need a paid antivirus tool on any OS. Windows includes its own solid security app, while macOS also has security measures built in. If you use Linux, you know what you’re doing. Android and iOS include protections that you have to go out of your way to circumvent.
Unless you’re actively installing apps from random sources or constantly visiting shady sites, the core protection of your OS is enough. You can get a second opinion with another tool’s manual scan, but don’t pay for it.
Major third-party antivirus tools include malware protection for free. Paid tools make money by adding extras you don’t need, like a system cleaner or redundant password manager.
ID monitoring and credit freezing are free
You don’t need to pay a company to freeze your credit or monitor your credit usage. Everyone’s personal info is out in the wild, so I recommend you freeze your credit with the three major bureaus (Equifax, Experian, and TransUnion).
Having frozen credit means nobody can fraudulently apply for a loan, credit card, or similar in your name. When you need to take those actions, it’s easy to temporarily thaw your credit.
You don’t need to pay for monitoring once your credit is frozen, since it’s not accessible. Use haveibeenpwned to get free alerts when your personal details are exposed in a breach.
Some companies offer more comprehensive services that help you rebuild your life in cases of identity theft. This is much less likely to happen with frozen credit, but if you think you’re at risk, those might be worth paying for. Just don’t pay a company to send you alerts you can get for free.
Lousy extended warranties
The math isn’t in your favor
Almost all tech extended warranties are a waste of money, for several reasons. A defective device is likely to manifest soon after you buy it. Plus, warranties are often filled with exclusions, so you might not be able to get a fix even if something goes wrong.
Above all, extended warranties aren’t cost-effective; they serve to help the store earn more money. You can set aside the money you would have spent on the warranty for a potential repair—and then if a problem never happens, you have that money for your next purchase.
You should always look at the cost of the warranty as a percentage of the replacement cost. If you can protect a device you plan to use for a long time at a low cost, it might be worth it. But adding another year of warranty to a phone that you plan to replace in a few years anyway is a waste.
Your credit card might offer an extended warranty period, which can provide extra peace of mind without costing more.
Don’t waste your money on traps
I categorized these costs as “tech traps” because they’re in front of you all the time, from advertising and decades of standardized advice. Avoid throwing money away on these, and you’ll have more cash to put toward your next device, apps that are actually worth paying for, or saving up for more important purchases.