Smartphone Budget

We are on a mission to help you make the right smartphone selection for yourself. If you have not read find the best smartphone for me article, please go read it first before continuing with this article.

In this article we going to look at the importance of knowing your smartphone budget. As this step is vital in terms of finding the right smartphone for yourself.

Contents we will be discussing under smartphone budget are:

  • Importance of knowing your smartphone budget.
  • Mention methods available to purchase a smartphone.
  • Discuss the similarities and differences between the methods to purchase a smartphone.
  • Examples of different ways to purchase a smartphone.


Why is it important to know your smartphone budget?

Is it really important to know what your smartphone budget is? Answer is yes, definitely!

Here are the reasons why it is important to know your smartphone budget:

  • By having a smartphone budget, it will help eliminate wasting time looking at smartphones that are out of your smartphone budget range.
  • Smartphone budget makes it easier to view a limited number of smartphones that are in your smartphone budget and lead you to make the right smartphone selection for yourself easier.

Thus, a smartphone budget helps you find the right smartphone for yourself quicker by eliminating smartphones that are above your smartphone budget. It is a really simple concept and important one.

But, now the next question is:


How to create a smartphone budget for yourself?


The answer is by looking at the different methods available to purchase as smartphone. As this will determine what your smartphone budget.


Methods available to purchase a smartphone

There are two methods how to purchase for a smartphone for and they are the following:

  • Contract purchase
  • Cash outright purchase

A) Contract purchase:

Contract purchase is basically when something is purchased and is paid-off over a certain time period with a specific amount.

Usually this method is done through cellular service providers in their store or at other franchises.

The contract purchase time period can vary in the following time periods long:

  • 24 months
  • 36 months

Now your smartphone budget under contract purchase will basically be focused on:

  • How much you can afford every month for your smartphone?
  • How long you can afford this budget for? (24/36 months).

Remember when signing up a contract, you must complete that contract until it’s last payment is completed. Yes, you can pay up in front certain amounts to the seller if you can afford it and want to reduce the time period of payment.


B) Cash outright purchase:

Cash outright purchase basically is when you complete the entire purchase for the item you want on day one. No monthly payments requested after this type of purchase.

Great part for this method is that you know you paid out the full amount for your smartphone and have no need to pay any extra fees or monthly fees compare to contract purchase.

Your smartphone budget under cash outright purchase is basically the total cash amount needed to purchase your smartphone you selected on day one.

Note cash outright purchase is quite expensive for certain smartphones compare to contract purchase. Thus, your smartphone budget under cash outright purchase will be higher than contract purchases mostly depending on the smartphone you select.


Similarities and differences between the methods to purchase a smartphone:

A) Similarities:

  • Both methods allows the customer to receive their new smartphone they selected on day one.

B) Differences:

  • Contract purchase – Customer still has to pay-off for the smartphone they selected over a certain period.
  • Cash outright purchase – Customer pays the full amount for the smartphone they selected on day one resulting not extra fees or payments are requested over a certain period. However, the full amount might be considerably high depending on your smartphone selection.


Examples of the different purchasing methods to purchase a smartphone


A smartphone budget is a very important step in finding the right smartphone for you. By having a smartphone budget it eliminates the time wasted on looking at smartphone that are above your smartphone budget and keeps you focusing on the smartphones that are in your smartphone budget range.

To determine what your smartphone budget will be, you will have to decide which of the following two purchasing methods will you make use of:

  • Contract purchase
  • Cash outright purchase

Under both purchases, you receive your smartphone on day one to use and own. However, the difference comes the period and the amount to complete the purchase between the two methods.

Contract purchases are purchases that pay off a certain small amounts over a certain time period which can be short or till three years. Of course, the shorter the period is, the more likely the amount would be higher and for longer periods, the more likely the amount will be smaller.

But, do not forget there is interest added over this time period of payment, but that amount is calculated with the amount you agree with the seller. Remember also after signing the contract you have to complete the entire purchase. If you cancel, the seller have the right to request the smartphone back.

Cash outright purchase means you pay the full amount for the smartphone on day one and no other expenses later. The cash outright purchase for certain smartphone might be higher than what you can purchase through contract purchase.

Thus, by understanding both purchasing methods you will be able to determine and calculate which method purchasing would be best for you to obtain your smartphone and what your smartphone budget will be.


So which purchasing method do your prefer to obtain your smartphone?


Please share your answer in the comments and also provide the reason why you prefer this method. Hope you enjoyed the article and will remember this important step to find the right smartphone for you!

6 thoughts on “Smartphone Budget”

  1. This is helpful information.  My son and I both have IPhone 10’s.  We are nearing the end of our contract for them, and I keep getting notices that I am due for an upgrade.  I hate having a contract, because I don’t necessarily want to keep a phone for 24 or 36 months.  I know some keep a phone for a lot longer.  I am considering something besides an IPhone because of their price.  Way over prices.  What phone do you recommend to replace the Iphone with that would be 5G?

    • Hi Leahrae

      Thank you for your comment!

      Glad you find the information useful. I am also not a fan of contracts as I don’t  like long term agreements as anything can happen that cause you cannot fulfill the contract anymore. Plus when this happens you are forced to return the smartphone to the seller which is very unpleasant.

      What is your smartphone budget? If it is below $300, I would recommend the Xiaomi Redmi Note 9 Pro. It is 5G and has awesome features that compete with other premium smartphones. If you want to see other options, please look at the following post.

  2. This is a very interesting post on smart phone budget that you have here. I live in Italy and went through the process a while ago that I needed a new phone and contract. I found that it was better for me to actually have my own phone, and then get the best deal. And to know what you smartphone budget is, is super important

    • Hi LineCowley

      Thank you for your comment!

      Glad you also agree to the importance of knowing a smartphone budget. 

      I also prefer to have my own smartphone on day one than contract as I do not like to be bound in long term contracts for one item. Sadly, the premium smartphones are always so pricey and only way to obtain them for myself I will have to consider for a contract purchase.

  3. Although it is great to pay for a phone with cash outright, it also has its downfall. If you have a contract, the cost of calls is greatly reduced and you usually get data each month that you pay less for than if you have to buy it on a month-to-month basis.

    I usually go the contract route for the first two years, and once the phone is paid off, then I just keep the same contract running at a reduced rate for another two years. In this way you pay next to nothing for your calls and data for the second two years.

    • Hi Michel

      I like your strategy as it is a strategy I, myself are also following it. After I have completed the contract purchase of a smartphone I desired, I usually just look at a good package for calls and data at a nice low cost per month.

      Premium smartphones are very expensive to purchase outright. While the contract purchase is lower depending the period you have to pay it off for. 

      Thank you for your comment!


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