PFT #41 -Personal Finance Tip: Reasons not to Buy a Cell Phone
Updated: Mar 5, 2022
Did you know that there are approximately 300 million cell phones in use in the United States?
That’s a lot and it has become as common as everyone owning a television.
So when it comes to most cell phone purchases, it is handled through the carrier where the customer pays a monthly fee until it is owned.
Now when it comes to upgrading, the most popular brands are Google, Samsung and Apple; and the cost for these phones can easily eclipse $1,000.
As for the monthly charge, spending $30-$45 each month is common and that doesn’t account for other services, fees and taxes.
So if we just take the middle ground for the service at $35 that’s $420 per year and for a family of four that’s $140 or $$1,680.
So here is one simple thing that you can do to save money … don’t upgrade your phone.
In most cases, the phone that you have is suited to handle your needs regardless of the temptation to get the latest and greatest model.
It is feasible that you can hold onto your current model for a few additional years and use that savings to pay off debt or invest your money.
Believe me, the last thing I want is for people not to get a phone upgrade as an Apple shareholder; however, properly managing money is more important.