Switching to broadband Internet service could be a smart investment for consumers. While broadband Internet access is more expensive than dial-up, it makes the Internet dramatically more useful. Those who harness its power could save thousands of dollars each year.
According to the Internet Innovation Alliance, a 2012 financial analysis by Nicholas J. Delgado titled Next-Generation Networks and Top 10 Consumer Savings Now revealed that the potential annual savings for U.S. consumers who use broadband totals $8,870. The analysis looked at the average U.S. household income before taxes as reported by the U.S. Bureau of Labor Statistics ($63,685) along with average expenditures, case studies, and data in the following areas: entertainment, travel, housing, food, apparel, automotive, newspapers, gasoline, non-prescription drugs, and bill paying.
The analysis found that savvy broadband users could realize significant savings in these areas by using the Internet to comparison shop or leverage opportunities. For example, by dropping newspaper subscriptions and getting the news delivered online, broadband users could save an average of $174.52 each year. Consumers who use the Internet to find the best deals on gasoline can save an additional $161.42 each year while those who pay their bills online can save an average of $46.68 per year on postage.
The potential savings become more impressive in terms of entertainment, travel, and big-ticket purchases such as cars and housing. The average potential entertainment savings totaled $2497.35 per year. Compared to the $5192 spent each year on entertainment, this number is significant and more than pays for the $490 yearly average cost of broadband service.
The potential savings for online shoppers include nearly $1,000 on food each year and another $1047 on clothing. Those who shop for new cars online can save an average of $444 on their purchases while online apartment hunters could save an average of $1736. Shopping for over-the-counter drugs online could result in annual savings of $110.
The analysis used data from a variety of sources to reach its conclusions. With $8870 in potential savings at stake, this financial analysis makes a strong case for consumers to put their broadband connections to work.
For all consumers we really need to be taking the plunge and ensuring that we spend the time online we have saving money. With savings to be made on everything from bills to baseball bats there’s really no excuses for not using the internet to its fullest extent. We could all do with a little extra money and hopefully now we’ll start realizing just how good the internet is for saving money!