How to Save Money from Buying a New Phone
The average life cycle of a cell phone is 18 – 24 months; equivalent to a warranty that a manufacturer gives. And indeed, most cell phone or smart phone owners replace their phones for a newer model (or for other purposes) within this time span (except for the cases of exceptionally sturdy phones like the old Nokia basic phone models). So what does this mean for you? This means that within two years, you will be replacing your phone. This could even happen sooner depending when you have bought your phone. Thus, knowing about finding ways to reduce the cost of getting a new phone can be a huge advantage for your wallet. Here are the most effective ways of cutting cost from getting a new phone:
This may be an absurd suggestion. But this is a useful consideration that many fail to even think about. Most smart phone users that are buying the latest ones only do for the sake of wanting to have the latest model or trying the newest thing out. However, if you really do not need it, then why go for it? For example, many replaced their iPhone 4 only to find little difference with the iPhone 4S. When replacing your phone, know the new phone’s specifications closely and have a long hard assessment if this will be worth your money and if your current phone really needs replacing.
2. Consider Basic Phones
Approximately 50% of cell phone users around the world actually download and use applications while more than 50% of mobile phone users around the world have app capable phones. This is a waste of money if we are going to be minimalist about it. When buying a new phone, think about what features or specifications you really need. If you do not need a high end phone, then go for a basic one. Some are available for as low as $15 and has all the basic functions you need like calling, texting, web access, camera, MMS, Bluetooth and so on.
3. Pre-paid vs. Postpaid
The free phones under postpaid plans are very attractive. You get a plan and you get a free mid-end smart phone. Surely a much better deal than having to buy a basic phone. However, don’t you think this is too good to be true? The truth is that you will be forced to spend more cash in the long run if you go for postpaid plans as it forces you to pay a certain amount of money every month whether or not you actually use the value. And going overboard the specified talk time or data will even multiply the costs. And because your free phone is under contract, you will never have a choice. Basic phones on prepaid plans may force you to spend an initial $20 to $50 in the beginning but it will help you save a lot in the long run because of the freedom on when to top up and its obviously lower rates than postpaid plans. So when it comes to saving, the combination is the way to go.