September means kids go back to school, the weather starts to cool off and the new iPhone arrives. On Sept. 12, Apple will unveil the new iPhone 15 models, The Wall Street Journal reported. But even if you're swept off your feet by the latest model, is it worth buying a new phone? After all, a smartphone, whether an iPhone or otherwise, isn't an inexpensive purchase.
In some scenarios, spending on a new phone makes sense:
Still, there are instances where upgrading likely isn't worth it:
Another question you should take into consideration before buying a new phone is how much you'd save by keeping your old phone rather than upgrading to a new one, according to Bankrate. The price of a smartphone typically falls in the range of $700 to $1,000, per an estimate by The New York Times.
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Even if that sounds feasible for your budget, there are opportunity costs to take into consideration as well. According to the Times, "an investment of $1,000 in a retirement account today would balloon to about $17,000 in 30 years." That same principle applies to the seemingly modest monthly payment breakouts as well. "If you put $12 a month into a retirement account, like a Roth IRA that has an average annual rate of return of 10%, that amount would turn into $25,161 over 30 years," stated the Times.
And if you're stretching your finances thin to get a new phone, you might want to think again. Per the Times' conversation with financial adviser Suze Orman, "a $1,000 phone charged to a credit card could turn into $3,000 with interest by the time it's paid off." That credit card debt "could also affect your credit score, making it harder to buy or rent a home."
If you're moving forward with a phone upgrade, these are ways to save:
Becca Stanek has worked as an editor and writer in the personal finance space since 2017. She has previously served as the managing editor for investing and savings content at LendingTree, an editor at SmartAsset and a staff writer for The Week.