Are you overpaying for your Smartphone?

Does it bother anyone like it does me that smart phones are astronomically expensive? I mean, just a few years ago, you could buy the older model for a penny. Seems like that is becoming less of an option these days. I did a little google search on my own smartphone to scope out the cost of the newest version. Not surprisingly, the sticker price was a penny shy of $1,000 retail. One. Thousand. Dollars. That’s an entire fund dedicated to just emergencies! Surely $1,000 could be put to better use.

According to Wikipedia, the version of the phone I currently own came out six years ago, describing it as a “lower-cost counterpart” to the newer model. If you’re starting to catch on, flashy new things really don’t appeal to me. I am much more content paying less for an older model of something than overspending on something that loses its value quickly. Case in point, my daily driver was given to us by a family friend, and although it has high mileage, a dented bumper and is 15 years old, it serves us well. We fortunately have the advantage of having access to a skilled mechanic, 24/7, who just so happens to be my husband.

But anyway, back to the phones. They are all-consuming, aren’t they? Phantom vibes are a real thing. Ever had them? The amount of screen time the average person spends on their phone is alarming, and it only seems to be climbing. And it’s really no secret why the supply and demand of the cellphone has just exploded in recent years. On a large-scale, we are playing right into the culture’s game, probably without even realizing it.

About two years ago, my husband and I were paying an embarrassingly high price for our phone plan, even though we didn’t have anything close to the latest models. Our phones were four years old at that time. After moving, changing jobs, taking a severe pay cut, and welcoming the news of expecting our second child, we decided it was time to take inventory of our budget.

The first order of business was to address those non-essential expenses, which included anything from unlimited data to Amazon prime (as hard as it is to believe, these things are luxuries, not necessities). Bottom line, we had to make some adjustments. So yes, we cut those things. We shopped around, asked for discounts, and even switched companies. In the end, we saved a lot of money, and our budget was happy again. Essentially, we did what had to be done, not necessarily what we wanted to be done.

Maybe you share the cost of your cell phone plan with other family members. Maybe you don’t upgrade every time the newest model comes out. Maybe your “thing” isn’t a fancy cellphone at all. Maybe it’s clothes, electronics, sports gear, etc. We all have hobbies or material items we splurge on. It’s good to enjoy life and enjoy the “stuff” in moderation. But when the “stuff” becomes all-consuming, or the spending habits are no longer under control, that’s when a problem is forming. It’s like a slow leak in the basement. A little water starts showing up, and we think, “no big deal; it’s just a little water.” Next thing we know, that puddle on the floor has evolved into an all-out flood.

Just like a slow leak, these problem areas with overspending affect other areas that we never intended: our mood, our finances and our relationships. Unfortunately, it doesn’t just evaporate like water. What was once small will eventually grow into something so big, it can no longer be ignored. Yes, splurging is nice occasionally, but don’t let it go unchecked. Based on your budget, can you really afford that new toy or the latest gadget? Decide what you can afford in advance and stick to it the next time you’re planning to buy yourself something nice.

Today, I still have the six-year-old phone, and my husband now has a dumb phone. We’re not exactly following the cultural trends, and that’s okay. What we’ve learned is that awareness is a huge part of how we manage money. Figure out where the leaks are in your budget. Take an inventory of all those luxurious non-essentials and determine if you can live without them. Hint: you can. Even if it’s just for a season, it can be done. The nice thing with numbers is they don’t lie. Math is math. Income minus expenses is either going to reveal a surplus or a deficit. The problem doesn’t go away unless we deal with it. And if the water is pooling at your ankles, change your shoes and get to work.