Per a recent bankrate.com survey, people age 18-36 spend $2,300 more per year, than those age 37 and older, on groceries, gasoline, restaurants, and cellphone bills.

98% of people age 18-36 have a smartphone, I wouldn’t have thought it possible for 98% of a group to agree on anything, just sayin’.   .     .

You don’t need a new smartphone every year! My analysis (see below) says you can save $858 (over 4 years), if you purchase your favorite iPhone, rather than lease (it’s pronounced FLEECE!)

“to obtain a great deal of money from (someone), typically by overcharging or swindling them” (definition of fleece, per the inter-web)

Let’s review Apple’s lease program (“iPhone upgrade program”) and Think like a boss. This program “requires a 24-month installment agreement”.  Let’s do one renewal to get a 4-year look.  Apple’s lease is $45.75 per month for the iPhone 7 plus 256 GB (per Apple’s website).  This plan allows you to rent an iPhone directly (actually tied to a credit card from Citizens One) from Apple, requiring you to return the phone after 12 months, at which point you are “allowed” to rent another iPhone for 12 months, and so on.    .     .

$45.75 per month for 2 years (initial 2 year term) is $1,098

$45.75 per month for 2 more years (next 2 year term) is $1,098

Total spend for 4 years is $2,196

This is all expense – at the end of the 4 year period – you own nothing.

Compare to a 2 year buy-and-hold purchase plan

Purchase an iPhone 7 plus 256 GB for $969

Purchase a second (after 2 years) iPhone 7 plus 256 GB for another $969

Total spend for 4 years is $1,938, but you also own 2 iPhones at this point; you could then sell each for maybe $300 (on ebay for example); the net spend would then be $1,338, or $27.88 per month.

The buy-and-hold strategy saves $858 over 4 years! (not to mention activation fees and other transaction fees).  You could save even more if you kept the same initial iPhone for 4 years.

After about 500 charges, a typical smartphone battery will no longer hold a full charge – meaning you will have to recharge it more often – probably more than once a day.

This condition leads many to decide to purchase a new phone – for many this involves debt or a lease (and a new 2 year contract with your cell phone carrier). The less expensive option would be to get a new battery ($60 from batteries plus) and keep your paid-for device for another year or two. This strategy also helps to keep you debt-free and to have the ability to sign-up for a no contract plan with your carrier (including the ability to switch carriers anytime).

Millionaires tend to keep high quality items for a fairly long time, to keep their monthly costs to a minimum; do your research and buy a high quality smartphone. I have had my iPhone 6S for almost 2 years now (fully paid for). I actually recommend you keep your smartphone for 3 or 4 years (if you really want to cut down on your monthly expenses). I really don’t recommend financing (debt) any depreciating asset (goes down in value over time); that will just weigh you down with higher monthly expenses. I would rather you save up and buy a smartphone (with cash! preferably used) and then get a no-contract cell phone plan; rather than leasing and being forced to sign a new two-year contract (perpetually in debt). After 3 or 4 years, sell your used smartphone and use that cash towards the purchase of your next smartphone. By bringing your own smartphone, you will reduce the price of your cell phone plan by $30 to $40 per month. That $30 – $40 per month is the “rent” you are paying to use their smartphone.

Think of it this way, it isn’t a smart business decision to purchase a new lexus every year – you would spend a tremendous amount on a depreciating asset (especially over time) – that’s not smart.     .     . Keeping possessions longer is a winning strategy that helps reduce your monthly expenses and hopefully keeps you debt-free too!