Photo: Glen Hunt

When do you settle for second best when tech shopping?

The sad truth is that most of us can't afford to buy the best of everything. Compromises must be made. Personally I'd rather drive an old car and carry a new phone, while other people are the opposite. But even if you're passionate about tech like I am, it's unlikely you can afford to buy everything from the top shelf. So when do you bite the bullet and go budget?

Snapping up last year's model on special, because they're clearing the shelves for the new models, is a great way to pick up a bargain. 

I think the key to shopping for tech on a budget, whether it's a big-arse television or a super-slim smartphone, is to have a clear understanding of exactly what you're sacrificing compared to the more expensive options. You're much less likely to be disappointed with your purchase if you go in with your eyes open and set realistic expectations. There's nothing worse than picking up what you think is a bargain only to discover that it's much worse than what you bargained for.

There's a lot to be said for the old saying "you get what you pay for". If you're paying less then you're giving up features, quality or both. I'd rather sacrifice quantifiable features, so I know exactly what I'm missing out on. Sacrificing quality is a lot more subjective and I think is more likely to lead to disappointment.

When I'm shopping on a budget I tend to look at the low-end models of the medium or good brands rather than the high-end models of the cheap brands. Snapping up last year's model on special, because they're clearing the shelves for the new models, is a great way to pick up a bargain – as long as the old model doesn't lack some feature that you desperately need. The post-Christmas sales are also a good time to shop and the Boxing Day Bunny has been good to me over the years.

Shopping for home entertainment gear such as televisions and home theatre systems on a budget is a good example of deciding whether you want to sacrifice features or quality. When it comes to televisions, the secret sauce of quality is video processing. The larger the screen the more important it is to pay for good video processing, or else most of what you watch will look terrible. If you're on a budget then don't get caught up in a game of "mine's bigger than yours" with your neighbours. You're better off dropping a screen size – going for 55-inch rather than 65-inch – and opting for a more reputable brand, assuming you care more about picture quality than raw inches.

Shopping for home theatre systems on a budget is even more difficult because there are so many options to choose from. Everyone draws their own line in the sand when it comes to subjective things like sound quality. Shopping is made harder if you need to negotiate with your partner regarding your tech budget, especially if they don't appreciate the subtle quality improvements which come with spending more money. Having suffered through years of me testing home entertainment gear, thankfully my partner appreciates the tell-tale signs of quality so there's less pressure to go budget just to keep the peace. 

When it comes to home theatres, whether or not you'll be satisfied with a budget option really depends on what you're already familiar with. I wouldn't recommend a sub-$200 system with tiny satellite speakers to anyone, although I'm sure some people would be impressed if they'd never listened to a more expensive system. I think you should declare $500 to be the entry-level mark but seriously consider spending more.

I've been holding off on upgrading my cobbled together home theatre system for a few years, because I haven't been able to justify spending several thousand dollars for what I'd consider to be a decent system. I didn't have a sub-woofer and the amp was so old it doesn't handle DTS, which is a problem once you're watching Blu-ray. Recently I convinced myself that I'll never be able to justify spending that kind of cash on a luxury item so I decided to go budget – picking up a $650 Yamaha system which was on special at $400. The next model up was only more expensive because it included internet and local streaming features which I don't need, as I have other gear to handle those jobs.

Yamaha is a decent middle-of-the-road brand, but at that price I was never going to get the speaker size and quality which I needed to meet my expectations. I have to admit I was rather underwhelmed with my new purchase, especially when I tested it out with the scene from The Matrix where they rescue Morpheus. I've listened to that scene through a $5000 sound system and I was trying to convince myself that I could live with the budget option, but I really should have known better than to dip so far below the line which I'd consider acceptable.

In the end I swapped in the larger front and centre speakers from my old system but kept the new amp, sub-woofer and rear speakers. The extra grunt, especially from the centre speaker, improved things significantly and I'm now much happier with my purchase. I know it's not the world's greatest system, but I'm satisfied with the results in my mid-sized lounge room. I'm not too proud to admit that I had to make compromises to suit my budget, but at least they're compromises I can live with.

Falling back on some of my old home theatre speakers was always my Plan B and part of the reason why I was prepared to take a risk on going budget. If I didn't have those speakers at hand I'd be wishing that I'd stuck with my guns and put that $400 towards a more expensive system. The more expensive your taste, the bigger the risk it is to go budget because you know what you're missing out on.

When do you feel it's safe to go budget? Which budget tech purchases do you regret?