Apple launched its first iPhone in 2007. The consumer electronic giant recreated in the process a mobile revolution, making smartphones the indispensable gadget of our modern lives. More than 10 years later, smartphones are part of our everyday life. They can keep track of your meetings and appointments, reminding you to leave on time to get to the dentist. They make payments possible, even if you forgot your wallet at home. They let you read and write emails, so you can work on the go.
Unfortunately, if you’ve got your eyes set on the latest iPhone, the iPhone SE launched in April 2020 or the iPhone 11 Pro with its 3 cameras, launched one year earlier, you’re in for a hefty surprise. Smartphones, whether iPhone or any other brand, come at a high price. Here’s why you want to think twice before buying a new model.
#1. What will happen to your current phone?
If your current smartphone is still under contract, things can get a little challenging. You may be wondering: How can I sell my iPhone if I still owe money? Well, there is no clear answer to that question. The response depends entirely on your carrier contract. The fine print in the EIP can let you know whether the provider retracts their right to repossess the phone, which means that the phone is yours. However, that doesn’t mean that you can stop payments. Your carrier could backlist the phone, making it impossible for buyers to activate the phone on any network. Read the fine print, and in doubt, wait until the end of your contract.
#2. Does your current phone work?
Why should you spend money to replace a gadget that you already have, and that is in perfect working conditions? The art of keeping your finances under control is to live within your means. In other words, there’s no need to indulge in lavish expenses, when you can’t justify spending money. The rule is simple enough, don’t buy what you don’t need. Unfortunately, that includes the latest iPhone!
#3. Do you have budget priorities?
Prioritizing your expenses is crucial to understand which payments are necessary and which can be delayed. When you’re running a tight budget, you need to focus on essential costs. To put it simply, your budget should be divided into three main sections:
- The must area refers to payments that have to happen, such as your rent or your credit card invoices.
- The nice to have area is about additional expenses that could enhance your lifestyle in the long term but that are not indispensable. Think of it as replacing your light bulb for LED bulbs that can save on your energy bills.
- The want area, which is where the new iPhone sits. You don’t need it; it doesn’t improve your budget.
#4. But I still want one!
No one says you can’t have one. As long as your budget for it and treat it as a long-term goal. You could save money over a few months, which gives you plenty of time to check reviews and make up your mind.
In an economy built on consumerism, it’s natural to want the latest gadget all the time. But don’t follow the trend. Take the time to research the best options for your finances. When you finally buy the object of your desire, it will be sweeter because you can be assured that it doesn’t put your budget at risk.