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IS THE IPHONE 5 WORTH IT? PERSONAL FINANCE CHOICE & Links

By in Saving | 18 comments

Personal Finance Factors to Consider Before Buying the IPhone 5?

iphone 5 should I buy the iphone 5

The Apple’s IPhone 5 went on sale this week.  Some folks waited in up to a week to snare a place in near the front of the line.  Like every purchase there’s a case to be made for either side. Open the news on your browser and you’re hit with “IPhone Sale Draws Huge Crowds” at CNN Money. Check out all the other news sites, print, online, television and the IPhone story is front and center. With all this coverage, one would think that the launch of the new IPhone is the biggest news in the world.

Consider these factors to decide whether to buy the phone or not.

Pros – Buy the IPhone 5 if:

  • You’re a marketer and want the exposure that waiting in line offers (oops, that was yesterday).
  • You have no consumer debt and typically spend less than you earn.
  • It will give your life a great amount of pleasure and won’t mortgage your future.
  • Someone else is giving you the phone as a gift.
  • You can sell your old IPhone and significantly reduce the cost of the new phone.
  • You job depends upon you owning the newest model.
  • You planned for the purchase and set aside funds to pay for it.

Cons – Don’t Buy the IPhone 5 if:

  • You can’t afford the new IPhone.
  • You have significant consumer debt.
  • You want the phone to impress your friends.
  • You typically spend more than you earn.
  • You think it will improve your status with friends and associates.
  • You have no savings or emergency fund.
  • The monthly phone contract cost keeps you from saving.

 “Success isn’t measured by money or power or social rank… (but) by your discipline and inner peace.” Mike Ditka

Once you have adequate food, clothes, and shelter, material things will not provide inner satisfaction. Any new gadget is fine as long as you are not sacrificing your financial future in order to keep up.

Barb Recommends Personal Finance Reading

Editors pick; Do you want to slash shopping costs? My jaw dropped when I read this article at Family CEO Blog about a strategy she used to save a bundle on her daughters birthday gift. I don’t know what it is, but it she paid about 66% of the actual cost due to her savvy shopping tips.

 Barb Across the Blogosphere

Please check out these sites that recently published my articles:

What are your thoughts on buying the new IPhone 5? Add any additional pros and cons.

image credit; google docs_toucharcade.com

 

    18 Comments

  1. I’m still debating on whether or not I’m going to get it. I can afford it and I do need a smart phone, so I’ll probably get it.

    Michelle

    September 22, 2012

  2. I’m gonna wait. The fact that I’ve got to buy at least 2 new adapters for $60 kind of annoys me. Besides, my iPhon4 works fine!

    Financial Samurai

    September 22, 2012

  3. I try to stay a generation behind. That said I rarely buy an iAnything (I did buy an iPod classic in college).

    Lance@MoneyLife&More

    September 22, 2012

  4. @Michelle-Let us know how it works out for you:)
    @Financial-New adapters? That stinks. The old ones don’t work? I would think the adapters would stay the same.
    @Lance-Yea, me too. I’m more of a late adopter, not an early adopter.

    Barb

    September 22, 2012

  5. I’m a huge nerd when it comes to spending time online. You’d think a smart phone (the latest and greatest) would be in my possession right now, especially with the downtime I have in passive travel, but it’s not. I did splurge some cash on a decent prepaid phone which I can use for text (texting is cheaper with my plan than talking), but buying an iPhone5, or any iPhone / smart phone in the near future is probably a no go.

    Don’t get me wrong, I enjoy new gadgets and new technology but something about the fact that Apple is coming out with a new product more often than ever makes me upset about their business model and the effect it has on the environment and well-being of workers who labor day in day out at Foxconn for pennies on the dollar.

    Veronica @ Pelican on Money

    September 23, 2012

  6. Veronica, I really like your analysis of the decision NOT to buy the iPhone 5. The hype is so pervasive it sometimes trumps reason!!!! I couldn’t agree more with your comments. Thank you.

    Barb

    September 23, 2012

  7. Thanks Barb! I do like the iPad quite a bit though (mostly because I bought a large laptop that seems to be a pain to carry around now.) But will I buy it for the convenience factor alone? Hmmmm. Decisions, decisions!

    Veronica @ Pelican on Money

    September 23, 2012

  8. No thanks, think I’ll pass. I do need a new phone but I think I am kind of over the iPhone. I had a 3G then I skipped 4 with plans to get 5. But after using some Android phones I’m not sure I want to go back. iPhone certainly isn’t a bad product or anything, but I really do love the open platform and everything that comes with that from Android.

    Garrett

    September 23, 2012

  9. I cannot justify the cost for the benefits of a smartphone. I may be the only one left!

    krantcents

    September 23, 2012

  10. @garrett-Thanks for the comments from the other side.
    @Krantc-No you’re not 😉 I’m a hold out.

    Barb

    September 24, 2012

  11. I love the new iPhone 5. It makes all the tech around it cheaper as the crazy people rush for the hot new thing! We were joking about the iPhone 5 all day Friday on our Facebook page. I found lots of funny parody and comic relief about the craze…..

    AverageJoe

    September 24, 2012

  12. I don’t have an iphone. I recently bought an ipad though, from using it I know I will never want an iphone. Android all the way for me, cheap and personally I feel it is now much more user friendly (Apple might have been pioneer when it entered the smartphone market, but after using ipad and Nexus I don’t believe they still are).

    Suba

    September 24, 2012

  13. @Joe, I’ll have to check out the discussion, seems like there are plenty of supporters on both sides.
    @Suba, Which do you prefer, the google nexus or ipad? I would think the IPad had more functionality.

    Barb

    September 24, 2012

  14. Nice article, Barbara. Unfortunately, those who don’t need or can’t afford end up owning new iPhone. And it’s not limited to new iPhone, these people also buy lottery and many other things that they shouldn’t.

    Shilpan

    September 24, 2012

  15. @Shilpan, That is exactly why I write!!! To educate and inform those of the way to build wealth and not throw it away!

    Barb

    September 25, 2012

  16. Hi Barbara,

    How is this one: I love my current cell phone plan and would have to switch if I got the iPhone5? I know it is weird, but I value my plan over the next greatest toy!

    Roshawn @ Watson Inc

    September 25, 2012

  17. Shawn, Not weird at all. I get it. I’m attached to my old phone too 🙂

    Barb

    September 26, 2012

  18. Still rocking the 3GS for as long as it still works. I have unlimited data and don’t want to give it up by getting a new phone.

    Brent Pittman

    September 26, 2012

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