phone, finances

New phone or security?

Are you Trapped in the Phone Fad?

Why is having a new phone considered, by many people,  more important in one’s life opposed to being financially stable. The lack of funds in bank accounts is an issue across the world yet you see all your friends with brand new phones every day. Those same people don’t even have the base model. They’ve spent extra and upgraded, going for more storage than they need and bigger screen sizes.

 

Now if you take a step back and look at the technology, what is the benefit? The battery life is about the same. The cameras are so good that you don’t need to worry about spending extra on your phone for the most part. They use the same apps and run the same software. Even the specs on the phones these days have become so overrated.

 

But people complain that their phones become too slow and they are not able to perform all the same tasks as their peers. While this may seem true, it appears that many of the new features that people brag about are not even that heavily utilized. For example, live photos is an amazing feature but is it worth purchasing a new phone for ? What about 4k cameras? Even the new phones by default will not record 4k, you have to make a change on the settings to do this. The problem with 4k videos is the amount of space that your phone needs for recording. Because of this, people also jump into purchasing phones that are so big, that they will never use all the storage; phones with over 200 gigs of space after apps, operating systems, email and text, and 1000s of photos and videos.

What Does That New Phone Take Away From You?

Now take a look successful people. They are using phones and tablets that are extremely aged. They have problems like low space but do not even care about the newer features available on the newer phones. While they may be stressing figuring out how to fix the space issue, their bank looks better. That extra 1000 you spend on a new phone every year is an extra 1000 in their savings account.

 

You may be the life of the party with your fancy new phone but they are the ones who can afford to throw the party if they choose too. When making a purchase like a new phone, stop and ask yourself if it is worth it. While you think it looks nice to have, having a new phone will not pay your electric bill or food bill. If you say you live off of someone and you don’t need to worry about bills? Well, maybe you should ask yourself if that new phone purchase times 40 years will take care of your retirement.

 

The decisions you make today will decide your future. Live like no other today so tomorrow, you can live like no other. Finances can be a mind game, it’s up to you to see through this. Do you want to live comfortably or pay check to pay check? Your phone is just one example. As you browse through our site, you will see articles on different items like this. If you follow past these marketing gimmicks, you can easily save yourself the extra money and put it away. Once you are putting money in an investment account, the interest can buy you your toys in your older age.

shopping, splurge

Going to the grocery store for 3 items, leaving with 30…

Breaking Your Budget

Splurge Spending

Have you ever heard the statement “I went to Walmart to purchase a bottle of shampoo and 300 dollars later, we left”? This happens to us all the time. You walk into Walmart with a list (well, some of us do) and you are on a mission to get in and get out. All you need is eggs and milk. Then you walk by the frozen food area and decide to add ice cream to your list. That Blue Bell isn’t cheap, but you don’t change your budget for this.

Domino Effect

This appears to be the pattern as you continue through the store. Before you know it, you bought candy, snacks, extra soda, cake mix, special bread, cheese, more yogurt. Etc., etc., etc. You’re here anyways, so why not stock up, right? But, it doesn’t stop there. You are in a shopping center, and you start to wander past the other aisles. You purchase a video game, new shirt and a cute hat. Now when you get home, you realize a lot of what you bought was the impulse buyer in yourself. Did you even budget that video game? Sure, it was a good deal. You told yourself it was, but where will that 30 dollars come out of before the end of the month? We know you are not going to tell your friends you can’t go out tonight because it would be embarrassing to stay inside over a video game. We know you must pay your car insurance. You can’t cut gas prices. I guess it’s safe to say that if you can’t afford things at the end of the month, you can just skip lunch.

Now you have to do this for every dollar extra you spent. That $15 hat, $7 ice cream tub, the soda that wasn’t on sale so you spend another $2 times 3 packs. Do you realize how much you actually are spending extra when doing this?

If you spend just 20 dollars extra every visit to the store, once a week in a year; This is what you spend.

1 month $86.67
3 months $260.00
6 months $520.00
1 year $1040.00
2 years $2080.00
5 years $5200.00
10 years $10400.00
20 years $20800.00

So, next time you head to Walmart and spend just an extra couple dollars, just think to yourself what you could do without that 12th hat being added to your collection.