Why you’re losing money by not upgrading your cell phone

I’m willing to freely admit that I am gadget obsessed.  Out of all the tech gadgets I research or purchase none gets me more excited than smart phones.  With each new year comes better screen resolution, camera upgrades, thinner, flatter, faster, better.  I personally am an iphone user but this post can apply to any phone.

My iphone has become a necessity in my life.  I check it constantly.  Without it I can honestly say I’d be lost.  It is how I connect to my schedule, family, friends, colleagues, and holds information about my business ideas, financial information.  It is my second brain. With all that being said I don’t necessarily have to have the latest and greatest model to accomplish any of these things.  However, I’ve come to the realization that I’m actually losing money by not switching to the new phone.  This is possible because of the diminishing value of your phone if you don’t trade it in.  A phone a year or two old is worth quite a lot of money in trade in value.  Currently a year old used iphone can still go for up to $400 on ebay. A two year old used iphone can go as high as $250.  When renewing your contract you can get a brand new phone for $199.  So, just by doing simple math you can see that if you trade in your two year old iphone and sign a new contract, you’ll actually be pocketing $50 to $100.  Obviously if you plan on switching carriers, moving out of the country, or finding yourself in a position where you couldn’t afford a phone plan, signing up for a contract is a pretty bad idea.  However, if you don’t fit into any of those categories, why not take advantage of the cheap deals?  In contrast if you didn’t sell your 2 year old iphone your phone would continue to decrease in value for the next year or two until it was down to virtually nothing and eventually stops working.  At that point you’d need to fork over the full $200 for a new phone/plan and get practically nothing for your old phone.

The reality is that the longer you put off getting that new phone, the less your current phone will be worth and therefore will cost you more in the end to get that new phone when your current one finally breaks down. So, there you have it.  Finally a legitimate reason to upgrade to a new phone…at least this is how I sell myself on it.