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How bad do you want it? Do you want it enough to put it on your credit card? If you go to the Apple store, they will be more than happy to break down the price of the phone into small monthly payments in your bill. You won’t even notice the monthly fee, will you?
The Monthly Payment Trap
It’s amazing how we can stick our head in the sand when it comes to how much things really cost. A common marketing tactic is to break down the total price of an item and sell it to you in monthly payments.
$40 a month sure looks better than $1,000.
Are you still making payments on your current phone? The fight to stay up to date with the latest gadgets is extremely expensive. Not to mention how easy the retailers make it for you to upgrade. If you still owe money on your old phone, many of the carriers will allow you to roll your outstanding balance into a new contract.
The Latest And Greatest
Some of you will go out and buy a new phone for the fear of missing out on the latest and greatest. Others of you can’t believe anyone would spend that much money on a cell phone. Either way, I find the name of the new iPhone ironic. “XS” sounds awfully close to “Excess” – is this on purpose?
We All Have Financial Waste
I know many of you will think the price of this new phone is absurd. To you I would ask, what do you spend money on each day? Is it a coffee habit? Buying lunch? If you would never buy this phone but you buy a $4 dollar cup of coffee each day, you spend over $4,000 a year on coffee.
It would make more sense for you to buy the phone if you stopped buying coffee at your local shop. Before you judge others on their poor money management, we need to look in the mirror.
Each and every one of us spend money on stuff we don’t need.
Examine Your Spending Habits Frequently
Each of us should be doing a monthly budget. If you’re not, I strongly encourage you to start one today. I wrote an extensive article on budgeting here that you can check out for step by step instructions.
If you already are on a budget, fight the urge to become complacent. Frequently reflect and examine where your money goes each month.
Make sure when you do your budget, you are not just going through the motions. Make sure you are on track to reach your goals. If you messed up a bit, now is the perfect time to get back on track. Spend a little time today to make sure you are not spending more than you should in certain areas.
Have daily spending habits crept back into your life? Spending money can quickly turn into a habit – even if just on small expenses. Remember, you work too hard to be this broke and your time is much more valuable than you think!
Don’t Ignore Your Debt
If you are thinking about purchasing a new phone, take a second look at your debt. Do you have suffocating debt that you are trying to ignore? Don’t be fooled by the enticing low monthly payment for this amazing phone.
Monthly payments add up. In fact, buying small things quickly add up to large credit card payments. Retail companies spend a great deal of money and resources to get you to buy their products, whether you need them or not.
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If you really want that new phone, you won’t hurt my feelings if you go ahead and buy it. You’re only punishing your future self if you can’t afford it.
This also isn’t a guilt trip. I want you to enjoy life! If you really want that phone, you should buy it. You should buy it right after you sell enough stuff to pay for it in cash. Or you should buy it after you have saved up enough money from your side hustle.
Living Responsibly Doesn’t Mean You Can’t Buy Stuff
Going on a budget doesn’t mean you can no longer enjoy life. A budget forces you to be responsible with your money. If you really want an expensive item that everyone else would consider wasteful, I say go for it! If you really want something, you deserve it.
However, make sure you buy it responsibly – with cash.
Avoid The Trap Of Retail Therapy
Some of us spend money to temporarily increase our happiness. We all have voids that we tend to fill with material things. If you have a void in your life that you are medicating with retail therapy, I encourage you to seek help.
No amount of spending will fix whatever burden you have or a lack of happiness. Buying things will only temporarily increase your happiness until that bill comes at the end of the month.
Remember the last new phone you bought? Right about now it probably doesn’t mean much to you. The latest and greatest items quickly go out of style and the retailers push something even better out for you to buy.
Recognize the tricks others push on you to get your money. You work too hard to be this broke!