If you’re like me, perhaps you’ve been salivating over the latest hot smartphone upgrades, such as Apple’s popular iPhone 12 or this year’s high-end Samsung Galaxy model. These new phones have ultra-crisp camera optics featured on multiple cameras, front and rear, plus many other bells and whistles that you didn’t know you were missing, until the manufacturer so easily convinced you.
As consumers, we are constantly reminded of an almost limitless variety of products we could buy. But as smart consumers, shouldn’t we try to shop for a good buy?
There are quite a few ways that you can try to save money when seeking to upgrade your gadgets. Here are a few.
Tip No. 1: Just Wait
This doesn’t work for everyone because the fear of missing out (FOMO) can drive you crazy when you see your friends or family members with a hot new gizmo. But if you can wait a few months before buying the new kid on the smartphone block, you might be able to save a few hundred dollars.
Tip No. 2: Buy a Scaled-Down Model
Let’s use the iPhone 12 as an example––it’s easier because there are countless high-end Androids now. Instead of the Pro or Pro Max models, which retail for just shy of $1,000 and $1,100, respectively, you might consider the standard iPhone 12 for $800 or the Mini version for just $700. (Note: I’m adding $1 to all suggested retail prices that end in $99.) Going with a smaller or less snazzy model means you’ll miss out on some features, but do you really need them?
Tip No. 3: Buy an Older Model
Consider buying last year’s model (or older) to save more. To use Apple as an example again, if you still have an iPhone 7 or 8, depending on where you shop and the deals available, upgrading to an 11, for example, might satisfy that desire to sort of keep up, and cost you less than $600.
Tip No. 4: Wait for Sales
Black Friday or Cyber Monday can reward your patience handsomely if you can hold off that long and are willing to really hunt for a deal. There is extra planning involved in finding a deal and snagging it, but the rewards could far outweigh the work and patience.
Tip No. 5: Trade in Your Old Device
Depending on how old your older model is and its condition, you might knock a few hundred dollars off of the cost of a new computer or smartphone by trading in the old one. Many computer companies, retailers and smartphone makers have offers available online that let you price out what your trade is worth.
Tip No. 6: Sign Up for a Free Upgrade Program
I’m not sure how much you’d save with this approach, since you’d be on the hook for monthly payments on a new device indefinitely, but you would be keeping up with the Joneses automatically. No FOMO, just a continual line item in your monthly budget and regular upgrades.
Tip No. 7: Go with Your Second-Choice Brand
Things have evolved considerably, and there are so many less expensive and more expensive models and pros and cons for every family and each specific model of computer and smartphone. So the best advice here is to know what you want and then comparison shop, which brings us to the next point.
Tip No. 8: Buy Only What You Need
If you're not into photography, then look beyond the camera and focus on the basics. If you don’t need a lot of storage, or you don’t need the biggest possible monitor or screen, you can save considerably. For example, the iPhone 12 Pro models with 128 GB, 256 GB and 512 GB are priced at $1,000, $1,100 and $1,300, respectively. You’ll clearly save money with less storage. But on a per-gigabyte basis, it’s far more expensive. As a guideline to see how much storage you need, look at your current phone’s storage capacity and your current usage.
Tip No. 9: Skip the Warranty and/or Insurance
With either service feature, you’re essentially buying peace of mind, and that can be priceless, or at least hard to quantify in terms of value. But if you’re driven by logic and numbers, multiply the monthly insurance premium by the number of months you’ll own your phone (for example, $15 a month times 36 months equals $540) and consider whether you might be better off bearing the risk yourself and saving that $15 each month.
Tip No. 10: Downgrade Your Cellphone Plan
Do you need unlimited data usage? Consider doing away with it and saving money each month, relying more on free Wi-Fi where it’s available and using free apps, such as Skype and WhatsApp, to text and make calls.
Tip No. 11: Shop Around Among Cell Service Providers
Are they all the same? Do your homework and pick the best plan and service provider for you. Yes, it’ll take a bit of time, but you could be saving money each month with a better deal. Paying just $10 less a month will leave you with $120 a year in savings.
Tip No. 12: Just say “No!”
I know someone who is still using a flip phone. No bells or whistles. No internet. A tiny camera. Basically, just a phone. Something to use like a telephone—remember those?—and to send and receive texts with. She knows what she’s missing, and she is 100% fine with it. She saves a bunch of money every month and every year.
“I love the simplicity,” she says. “I enjoy not being obsessed with my phone when I’m with other people or in nature. I enjoy that freedom, and I don’t want to give it up.”
Well, that might be a bit too Spartan for you. But whatever your answer is in the quest to save money on personal technology, give it some thought, do your homework and have fun seeing how, and how much, you can save on the latest gadgets.
Allan Kunigis is a financial freelance writer based in Shelburne, VT. He has written about personal finance for more than two decades.
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