Recently, Apple came out with the new iPhone X. I must admit, when I saw the advertisement video, I was impressed. As I perused the website, I was introduced to all the new features, which are incredible!  


The 12 MP camera, the TrueDepth 7 MP camera, video recording with playback zoom, and face ID.  Come on!!! My mouth was watering. And let's face it, when you hold an iPhone, there's just no other phone that feels the same in your hand.  It's truly a work of art.


I worked my way through each menu from Overview to iOS to Tech Specs, and then I clicked on the BUY button. The first number I saw was "From 49.91/mo." Hmmm, not bad! I can do that. Then, further down, almost mocking me, it said, "Or pay in full from $999." Gasp!  What??? I hit the Select button to learn more...

After selecting my phone carrier from the four that will carry the iPhone X and choosing a finish, the true price was revealed. I sat there dazed. I quickly did some mental math, only to realize the reach I would need to make to own this latest wonder device. I went from elated to deflated in just 2 clicks.

The price for a new iPhone X varies between $1,000 and $1,150 if you pay in full. If you choose the 24-month payment option, it's going to cost you $1200 to $1350, depending on the option you select. This doesn't include any accessories or taxes, which are due at the time of purchase.

How can we afford to buy a $1,000+ mobile phone? That’s easy; most of us can’t. Nearly 60% of Americans have less than $1,000 saved for emergencies, so no, we can’t buy a new iPhone! But we will!

Buy now, pay later

The power of advertising cannot be ignored. It forces you to see the smaller monthly payment and ignore the full price.  It's no coincidence that Apple put the monthly payment first and placed the total full price last. When you're given the smaller and the perceived more affordable option first, the total [pay in full] price feels ridiculous to even consider.

We’ve been influenced to spend money by not considering the total cost, so the true cost will not limit our spending. 

 

The “no money down,” “easy monthly payments” message has worked beautifully to lull most Americans into a false belief that they can afford anything. Unfortunately, this just isn't true. We may be able to swing one monthly payment, but we can't swing 10 or 15, not without sacrificing other more important things.

3 Ways To Make Wise Financial Decisions

1. Count the cost

Consider the cost, the whole cost of everything you buy. Don’t buy everything on payments! When you do, the cost is always higher than what you should pay. Save for purchases, exercise delayed gratification, and you'll be wiser and wealthier than most.

2. Use a spending plan [budget]

It will give you the clarity you need to make informative and wise decisions. And, it will empower you to gain and keep control of your money, so you can enjoy today without sacrificing tomorrow.

3. Get a coach or accountability partner

You are 85% more likely to reach your goals when you incorporate the help of a coach or a friend to hold you accountable. If you've not been able to succeed doing it alone, it's time to incorporate some help.

The resources we’ve developed, which you can access on this website, will provide you with the tools and guidance to create a plan. We're here to help you in any way we can.

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