6 Things You Can Spend $1,000 on Instead of the iPhone X
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Apple recently announced the arrival of the iPhone X, a top of the line new iPhone with some incredible features and an equally incredible price: $1,000+.
I’m a huge fan of Apple and a consumer of many of their products. While I would not cry if someone handed me the iPhone X as a gift, I also would not purchase it. I love my iPhone but I buy mine used or refurbished every time and use them for at least 2 years.
However, I know there are many people out there waiting for the phone to come out. Lots of them might even go into debt, paying $50 or so a month for the phone as part of the Apple store’s popular phone financing plan.
If you’re thinking about buying the iPhone X, I want to present some better ways to spend your hard earned $1,000. Below are six more financially productive uses for your money.
#1 – Start an Emergency Fund
Dave Ramsey recommends that in order to get your financial life in gear, Step 1 should always be working towards saving $1,000 in an emergency fund. So if you don’t have any money saved right now, this is the best place to put it.
Online banks, like Synchrony, are great places to open a savings account for your emergency fund. Synchrony pays at least 1.85% and requires no minimum balance.
Having an emergency fund is the top defense against getting into more debt. When your car breaks down or your dishwasher breaks, you have the $1,000 fund there to help cover the cost. This will prevent you from going further into debt.
If you already have an emergency fund, then the next best use for $1,000 is to pay down debt. Start with your highest interest debt like credit card debt. Often, refinancing some of your highest interest rate debt into a lower rate can make all the difference in your debt payoff efforts.
Going through a lender like Avant, can really accelerate your debt payoff efforts and allow you to become debt free much quicker.
If you are debt free and have your emergency fund, try some of the other options below.
#2 – Donate to Someone in Need
The holidays are coming up and it won’t take any of us long to look around to find someone less fortunate than we are. Although we all have our struggles, you could use a portion or all of youR $1,000 to donate to an organization who needs it.
Many people are donating to hurricane relief efforts, and as someone who experienced Hurricane Katrina firsthand, I think this is a noble cause.
#3 – Upgrade Your Home, not your phone
When I say “upgrade your home,” I’m not talking about a $20,000 addition. Think of small upgrades that can improve the value of your home and make a big impact in your life. For example, my husband and I were just pricing some new floors for our bathroom.
The tile in there is old and cracked. We only have one bathroom so we have a lot of people using it every day. The floors will cost a few hundred dollars to upgrade. This is something that will improve our home and our day-to-day lives.
Although you could argue that you would use a phone every day, it’s just not as long lasting as adding a backsplash to your kitchen or buying a new couch because your
toddlers cat peed on yours. Phones only last a few years so if you had $1,000 and no outstanding consumer debt, investing it in your home could be a wiser choice.
If you don’t have any upgrades worth making, you could consider refinancing your mortgage to a lower rate LendingTree makes it easy to check rates on mortgage loans and if you find one lower than your current rate, you can use the extra cash you’ll save on interest to pay down your mortgage loan faster.
#4 – Start a College Fund
It’s no secret that college is expensive. The cost of a four-year degree is always going up, even to the point of outpacing inflation. What that means is that sticking money under your mattress isn’t enough. A college savings account that earns some interest on your investment makes much more sense.
If you haven’t started saving for college for your kids, now is the time. $1,000 makes a great starter college fund, and you can help increase the amount in the fund by putting a percentage of your kids’ birthday and holiday money in the fund over time.
#5 – save for Retirement
Many people are behind in their retirement savings, so I can’t think of a better use for $1,000 than to save it for your future. Remember, saving for retirement early means you’ll get to benefit from compound interest.
It’s not as though you’ll have $1,000 waiting for you 20 years from now. Ideally, you’ll have much, much more than that as long as you invest the right way. Here are some great options to start saving for retirement if you’ve not yet started.
The more you ignore everyday temptations like the iPhone X and put it towards your retirement goals, the more wealth you will have in the future.
#6 – Save Towards Something Bigger than the iphone x
Right now, a new iPhone X might seem like the most exciting thing on the horizon. However, soon the glow will fade. Instead of letting go of $1,000 now, think about what you can save it for down the line.
Have you always wanted to buy a new car? Do you want to take one of your parents on vacation? Do you want to add to your family with another baby?
Whatever it is, remember that $1,000 is a lot of money, and it can go a long way towards paying cash for a new-to-you car or paying cash for a vacation where you’ll make memories for a lifetime.
Again, I’m a big fan of Apple. I own Apple stock and I’m typing on a huge iMac while glancing at my iPhone from time to time. However, I know that this $1,000 iPhone will not be something useful for many people. It’s more of a status symbol.
To find an iPhone that’s useful, you can buy one refurbished like I did, find an unlocked smartphone on Amazon or buy an iPhone from a friend. Try to resist paying more for the premium product they’re offering mostly because there will be another premium product that will replace it in just a few years.
What do you think of the new iPhone X? Would you ever buy a $1,000 phone? What type of a phone and phone plan do you have right now? How else would you spend $1,000?
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