With our fast paced technology trends and improvements to electronic devices, we are so tempted to purchase or upgrade to the latest and greatest. This is especially true when it comes to cell phone carriers. Every carrier offers a 2 year plan where they offer you a great deal for the newest cell phone that just released whether if it is an iPhone or an Android device. Depending on your current contract, the carrier may look at how many months you have and approve you in upgrading your cell phone for a minimal charge by trading in your current cell phone. The only condition on your part is that you have to sign up to their 2 year plan to cover the cost for the new cell phone which will increase your monthly expenses as you have to commit to it.
Now you are wondering, should I get a new cell phone with the latest gadgets, extra memory, improved camera, bigger and more high resolution screen? If it falls within your budget then, of course, go for it.
The average consumer has a limited budget but cell phone carriers put so much incentive to get the consumer to get the new device as it supposed to be superior to the current device.
With me, I need to ask myself if it is worth the extra $30, $40 or $50 to upgrade to the new device. Given my current budget, I have to see if it is worth the extra money or just wait it out as eventually the new device will depreciate in value; technology gets better. I can negotiate with my cell phone provider and look for any reduced plan to save money and finish my current contract. After I finish my contract, most cell phone providers then have a ‘bring your own device‘ plan which brings down the price even more.
When a new device comes out, do some research and compare it with what your current device has. There are so many reviews on the Internet of the pros and cons of new cell phones that come out. If the new device does not have more technological improvements then it is better to stick with the current device and save your money. What I plan to do is pay off my cell phone, take advantage of the ‘bring your own device‘ plan which I have done in the past and then wait. I will first see how my budget is and if it is not within it (after my expenses such as other bill payments, debt payments) then keep my current device as I am content of what it is doing for me. I will take advantage of the ‘bring your own device‘ plan in the near future to increase my savings. Once my budget comes to point where I can afford the new cell phone then I will consider my options strategically. Who knows! By that time the cell phone provider will provide me the incentive of a $0 upgrade fee plus trade-in.