Apple’s latest iPhone 15 might look tempting, but do care to make the affordability assessment before you decide to buy it. Don’t let FOMO cloud your prudent spending and smart buying decisions
Apple recently unveiled its latest iPhone 15 series in Cupertino, California, which is set to be available in India starting September 22, 2023. Needless to say, it has caught the fancy of tech enthusiasts who are more than eager to lay their hands on this latest product from Apple that boasts of a sleek design and cutting-edge features.
But with prices ranging from Rs 79,900-1,19,900, they certainly don’t come easy on the pocket. So, before you plunge into the world of iPhone 15, let’s take a closer look at whether it’s a wise financial decision to buy one.
So, you have got your eye on the shiny new iPhone 15. Before you hit the ‘Add to Cart’ button, it’s crucial to assess whether you can truly afford it. As Shweta Jain, founder of Investography, wisely puts it, “Buying a gadget like a phone, which you upgrade every couple of years, shouldn’t burden you.”
In a world dominated by fear of missing out (FOMO), it’s easy to succumb to the allure of the latest tech trend. However, financial prudence should always take precedence over any impulsive buying.
Adds Jain: “Ideally, your phone’s cost should come to just 20-25 per cent of your monthly income, and this should come from your existing savings, not future earnings or funds earmarked for other goals.”
Now that you have ensured that you are within your financial boundaries to buy the iPhone 15, let’s explore how to make the purchase without draining your bank account. Here are some options that you could explore.
Savings: If you have saved enough, you may consider spending that to make the purchase. This option will ensure that you do not end up accumulating debt or pay interest.
EMIs: Many retailers and banks offer the option of equated monthly installments (EMIs) for buying gadgets, including iPhones. However, one should be cautious about the high rates of interest and other hidden charges. You can also get your phone on EMI through your credit card, but not paying your dues on time will lead to interest charges that could be as high as 42 per cent per annum.
Personal Loans: If EMIs aren’t your cup of tea, you could also opt for a personal loan. However, make sure to compare the rate of interest offered by different lenders and choose the one that is most affordable.
When you are considering a financial option to purchase the iPhone, remember that it will have to be a very prudent decision.
Also remember that buying a phone should not disrupt your ability and capacity to meet other essential expenses and saving and investment goals.
While as a rule of thumb, your total EMI outgo can be up to 40 per cent of your salary, your phone EMI should not be more than 10 per cent of your salary. For instance, if your salary is Rs 50,000, it may not be a wise decision to spend Rs 1.5 lakh on a phone. Even if the EMI comes to Rs 12,000 a month, which may not seem a big amount, it can put undue strain on your finances.
Trade-In Your Old Phone: Don’t forget to trade in your old phone. It can significantly reduce the cost of the new iPhone.
In a world where your smartphone is an extension of yourself, upgrading to the latest model can be quite tempting.
However, as Jain advises, it is prudent to be financially responsible and keep your spending in check. The iPhone 15 may be a dazzling piece of technology, but it’s vital to remember that financial stability and prudent money management should always take precedence over spending. So, before you succumb to the allure of the new iPhone, make sure your bank account gives it the green light.