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This weekend I bought the iPhone X. Yes, I know it costs over $1K (after taxes) but there were some rules on if someone should and can afford the iPhone X. Read more about that here. After all, this phone is a want and not a need.
Can you really afford the iPhone X?
If you were thinking of getting your hands on a new iPhone, you need to pass these 4 criteria’s:
1 – You’ve had your current phone for at least 2 years
2 – You do not have any credit card or student loan debts
3 – You have at least an 8 Month Emergency Fund
4 – You are maxing out the contributions to your retirement accounts
I have passed all of these requirements so I went ahead and bought one. My current iPhone is over 3 years old and I’ve had an iPhone ever since they were released over 10 years ago. I really fretted over getting the new iPhone because it was so expensive. But after much soul searching and research, I decided to get it. But now I feel the need to justify my decision.
I decided to switch phone carriers after 10+ years
After being with AT&T Wireless for over 10 years, I decided to switch to T-Mobile. The main reason why I jumped ship was because T-Mobile was offering the most money back on my old iPhone 6. They will give me a $300 credit spread out over 24 months. So that comes out to $12.50 a month.
I also think that T-Mobile’s plans are a really good value compared to the other carriers. For $80 a month including all taxes, you get unlimited everything. Unlimited talk, text, data and you can use your phone in almost every country without having to pay extra fees. They also include free Wi-Fi service (if available) when you are onboard an airline. If you like to travel like me, then T-Mobile is definitely the carrier for you.
Another nice feature they offer is tethering. I can now use my new iPhone as a hotspot when I can’t connect to Wi-Fi (if I can get a cellular signal). This will be very useful for when I want to work or blog outside or somewhere else where I an unable to get a Wi-Fi connection.
I know other major wireless phone companies offer these same services but they charge more money for their monthly plans. Plus they could not match the $300 cash back on my old iPhone 6. Other carriers were only offering $200 back.
I visited two different T-Mobile stores. One by my work and the other by my home. They were both so welcoming when I walked in. The sales associates were friendly and easy to talk to and they seemed genuinely eager to help me.
Customer service goes a long way with me. If you are nice to me, I’ll be even nicer to you. But if you are rude to me, I’ll be even ruder back to you. That’s just how I roll. I generally treat people the way they treat me. I find that most people get very angry when I treat them the same way they have treated me, but that’s a different story.
I did not get the same reception when I walked into an AT&T store. The sales associates were not helping any customers and they still did not ask me if I needed any assistance. I finally had to go up to someone sitting behind the counter. She was talking with another associate and it seemed like she did not want to be bothered. I asked her if there were offering any promotions on the iPhone X?
She passed me off to another sales associate and I explained to him that I’ve been a loyal customer with AT&T for over 10 years. Could they match or offer me something similar to T-Mobile’s plans and cash back promotion? The sales associate flat out said no and did not even try to keep me as a customer.
I know he probably did not have any power to offer me anything other then the standard plans they have in place. But he didn’t even try or go speak to a manager about it. I know I could have just gone and asked a manager myself. But at that point, the decision was already made for me.
This could have been a one off store situation for AT&T. Maybe their sales associates in other locations are trained better than the ones that I visited? But that’s not my problem or concern, as this was the experience I received from their store which location was most convenient to me.
What my new wireless phone bill will be and what I’ve shelled out so far
So here is the breakdown of how much my wireless bill is going to be with T-Mobile. And what I have paid thus far for this endeavor.
I paid $368.00 upfront for the iPhone X 64 GB version (this amount goes towards the total cost of the phone which is $999 plus tax).
I paid a one-time $27.22 activation fee to T-Mobile.
I will have to pay $30.00 month for 24 months (at no interest) to pay off the iPhone X.
I will have to pay $80.00 month for my unlimited wireless bill.
I will receive a credit of $12.50 month for 24 months for trading in my iPhone 6 with T-Mobile.
So just to get the iPhone X in my hands, I’ve paid $395.22 up front for it.
My wireless bill after receiving my trade in credit and paying for the new phone for 24 months will be $97.50 a month.
My current wireless bill with AT&T was approximately $73.50 month.
So I am paying $24 a month extra for the luxury of having the iPhone X with T-Mobile.
You need to find a way if you can to offset your new expenses by cutting things from your current expenses
I had to find a way to cut at least $24 a month to offset that extra cost from my monthly expenses. So this past weekend I called my cable company and got my monthly cable bill from $184.00 month down to $132.00 month. I cut out channels I really didn’t watch and qualified for a few promotions. Read more about how to save money on your cable bill and other monthly expenses here. So that’s a savings of $52.00. But after I add my new T-Mobile bill, I am really only saving $28.00 month.
My monthly bills are now less than what they were before I got the iPhone X. So I’ll take it.
I hope this real life example teaches some of you that being prepared, saving money and doing your research pays off big time when it comes to most anything. In this case, it was purchasing something new that I really didn’t need but wanted and saved money on my monthly bills in the end.
If you ever find yourself upgrading to a new anything (a car, house, TV, kitchen appliances, phones, etc.) it may cost you more upfront to attain them. But try and find ways to cut some of your current expenses so your new toy (or whatever it may be) won’t hurt your pockets so much.
Can You Afford the iPhone X?
13 Super Easy Ways to Save Big Money
How I Save $500 Month By Cutting This One Thing Out
The One Thing I Don’t Mind Spending Money On
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