Summary: We pretty much do everything on our smartphone – Socialize, get entertained, pay bills and click photos. But it need not cost us an arm and a leg . Many smartphones will satisfy our needs and be within our budget. Understand your usage and income and then set an appropriate budget for a smartphone. The amount saved can be put to better use such as investment or insurance.
Mobile phones have a come a long way. They have changed from big clunky gadgets to sleek models. They have bigger screens, better displays, smarter features and higher price tags.
Today, a smartphone is a need rather than a want. We justify a purchase in many ways –
Today, a smartphone is a need rather than a want. We justify a purchase in many ways –
- My job requires a smartphone.
- My colleagues have one.
- I can afford one.
Here is an indication of the prices of smartphones –
|
Phone Model
|
Price
|
|
Apple iPhone 11 Pro Max
|
₹ 1,23,900
|
|
Samsung Galaxy Note 10+
|
₹ 79,999
|
|
Samsung Galaxy Note 9
|
₹ 41,990
|
|
Vivo VZ1 Pro
|
₹ 13,700
|
|
Samsung Galaxy M40
|
₹17,999
|
Source: amazon.in (Dec 2019)
How do you know if you are spending the right amount?
Real Cost – An iPhone 11 costs up to ₹ 65000. Most of us use our phones for 2-3 years. We are tempted to buy newer models with better features. If it lasts for three years, it would mean about ₹ 1800 per month. The other costs are your monthly subscription bill, charging bill and paid downloads. How much is this as a percentage of your monthly income? If it is high, it is not worth it.
Depreciating Asset – A smartphone is a depreciating asset. The phone start showing signs of wear and tear with usage. Batteries get older, screens crack and performance dips. It loses value over time due to depreciation and improved models in the market. So, it does not make sense to spend a lot on it.
Real Need of a smartphone – List out the reasons for buying a smartphone. Many of us use it for communication, watching videos, social networking, surfing the Internet and clicking photos. Some of us use it more extensively for business (income). We use it for communication , e-mails and documentation. Others use it for tasks like budgeting, investing and managing health indicators. We use applications for music, maps and photos. Some of us are tech geeks and prefer phones with higher specifications.
Most of the functions mentioned above are available in an average smartphone. You do not really need a Samsung Galaxy Note 10 or an Apple iPhone 11. You can buy a phone under Rs. 15,000 to serve most purposes. For example, Vivo Z1 Pro or RealMe X are good options if you do not want a high end camera. If you are a student who likes playing multiplayer games and needs a phone for communication and camera, the RealMe 3 Pro or Redmi Note Pro 7 are good options. If you are the average music listener, you may not be able to understand if your phone plays music with the lowest harmonic distortion or has features to give the purest sounds. But if you are in the music business, you will need a phone with supreme speaker capabilities. Understand how you use your phone and buy an appropriate one rather than the latest phone.
Real Cost – An iPhone 11 costs up to ₹ 65000. Most of us use our phones for 2-3 years. We are tempted to buy newer models with better features. If it lasts for three years, it would mean about ₹ 1800 per month. The other costs are your monthly subscription bill, charging bill and paid downloads. How much is this as a percentage of your monthly income? If it is high, it is not worth it.
Depreciating Asset – A smartphone is a depreciating asset. The phone start showing signs of wear and tear with usage. Batteries get older, screens crack and performance dips. It loses value over time due to depreciation and improved models in the market. So, it does not make sense to spend a lot on it.
Real Need of a smartphone – List out the reasons for buying a smartphone. Many of us use it for communication, watching videos, social networking, surfing the Internet and clicking photos. Some of us use it more extensively for business (income). We use it for communication , e-mails and documentation. Others use it for tasks like budgeting, investing and managing health indicators. We use applications for music, maps and photos. Some of us are tech geeks and prefer phones with higher specifications.
Most of the functions mentioned above are available in an average smartphone. You do not really need a Samsung Galaxy Note 10 or an Apple iPhone 11. You can buy a phone under Rs. 15,000 to serve most purposes. For example, Vivo Z1 Pro or RealMe X are good options if you do not want a high end camera. If you are a student who likes playing multiplayer games and needs a phone for communication and camera, the RealMe 3 Pro or Redmi Note Pro 7 are good options. If you are the average music listener, you may not be able to understand if your phone plays music with the lowest harmonic distortion or has features to give the purest sounds. But if you are in the music business, you will need a phone with supreme speaker capabilities. Understand how you use your phone and buy an appropriate one rather than the latest phone.
Where Can I use the money saved on a smartphone?
Money saved on a smartphone can be invested in a mutual fund scheme or in PPF. Spend it on an experience that you will cherish for a lifetime. Donate to a charitable cause or fund a few premiums for health insurance or term insurance.
Most general mid-range smartphones are quite powerful to serve most of our smartphone usage needs. Buy an affordable device rather than an expensive one on EMI basis and struggle with payments.
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