What the iPhone 3G S says about your bank account

My house is paid for, my new SUV is paid for, I eat out often, and I am getting the new I phone. Nothing wrong with that. My pet peeve is people worrying about what other people do with their finances. Why should you care as long as they don't ask you to pay for it!

Wonder what it says about me…….after 16 years as a verizon customer.from back in the days when one phone could easily cost you $300 a month……….my latest phone is one that cost less than what my "Upgrade Credit" was from Verizon.

And the Family SUV is paid for and has only 40K miles on it…..

And I don't get HBO…….

And I have a six figure income….

so why am I always broke?

Oh yeah………two daughters.

HA! I know a lot of friends and family in their late 20's/early 30's who exhibit nearly every trait on this list! I think this list is more likely to apply to the gen X & Yers who are so self absorbed and so into immediate gratification, that they have no idea the effect their decisions have on their financial stability. It's really sad how often I've heard "I can't go b/c I can't afford it" or "I'm broke until next payday" when asking someone out for lunch, dinner, or a drink lately. Especially when most of these people who "can't afford it" have flat screens, DVRs, new cars, iphones/blackberries/ipods, or even "McMansions." These people don't have a clue – hope they enjoy working as walmart greeters in their "retirement."

-and no, this isn't bitterness talking. I own a house in the "good part of town," with a mortgage that will be paid off as I turn 40. Even though the bank said I could "afford a house twice as much as you are buying," I knew I didn't "need" it. I bought a brand new SUV 14 months ago (paid half cash, and the rest will be paid off next year), I have a new laptop w/ cable modem, etc. I just took a wonderful trip to Italy. The difference is, I have NO CC debt and pay cash for nearly everything, and am well on my way to retire very comfortably at 55, even though the husband and I make a modest salary (less than 100K). I'm not rich, but I'm not poor b/c I'm not dumb with the money I do make. I am, however, irritated at those who made (and continue to make) stupid decisions, and then blame their "misfortune" on the economy….and then look to a president whom they think will bail them out. again I say HA!

The list is spot-on – especially about financial priorities. Until you ask yourself what you really want to do with your money, you're likely to just p*ss away any leftovers you think you have.

There is so much whining right now. Why can't you have everything you want? I get the latest and greatest of everything I enjoy. I have the premium DirecTV package. I eat out almost every meal and I buy things when I want them. I also work efficiently to earn enough money to be able to do that. You really can have whatever you want, you just have to be intelligent enough and hard working enough to be able to afford the type of lifestyle you wish to have. The economy retracts because people freak out and stop spending money. Then inventories pile up, businesses stop purchasing new inventory and then inventory stops being produced. This results in job losses. Then there is less money to spend, so the government has to pump up the economy. People should definitely live within their means, but there are so many people on here self-righteously espousing the virtues of their self denial. I hate to tell you this, folks, but this is the only life you get. You can second-guess and wait for the next version to infinity. In the meantime, I will be enjoying the fruits of my labor.

As a struggling small business owner (many would call poor) I find the iPhone an invaluable tool to keep crucial info at hand which has greatly improved my profits and my image. I have to say that it has truly helped me to climb out of the hole.
I guess it just depends if you know how to use such tools to their fullest potential.
As for upgrading, for me at least it is much cheaper and wiser to upgrade in the long run. Upgrading (at least this time around) extends the warrenty which was about to run out, gives me the much needed RAM to have a well functioning iPhone well into the future. The RAM on the iPhone 3G released in 2008 is barely enough to run heavy duty applications on the iphone and has difficulty (in my experience) running iPhone's new Operating System 3.0.
When the warrenty runs out and the phone has problems I'd be messed up bad.

Well, I wonder what this says about me.
I bought the iphone for $99 and got the new v3 update.
It doesn't have the video, the 3 megapixel camera, or the compass… but, it's close enough.

I sold my ipod touch 16gb on Amazon for $275 that I had for a year and coincidentally my old cell phone plan just came up for renewal – so I'm trading up for the 32gb for only $50! I think that's pretty smart! (Plus I get a 10% discount on AT&T plans because of my companies relationship with ATT)

Nobody truly needs a financial advisor or blogger. Everybody just needs to exercise the wonderful 'gifts' of common sense and fiscal discipline: live within/under one's means and save. THEN one can splurge once in awhile without risking falling into the big,black debt hole.

no cable, no iPhone, house worth 2x my income, car 1/5 my income and 1.4M in bank. that's the formula

The article makes very some good points, but I don't like the (too general) stereotyping of NSWTDs. Not everyone buying the (actually very cheap!) iPhones fall into the category of splurge spenders. At the same time — Collectively as Americans, spending what we don't have, has brought us to the point we are today. We owe more than $1 trillion to the Chinese in national debt; but now with all these new iPhones we are going to route millions of dollars (of course through Apple Inc.) to China to pay for the manufacturing labor. Apple loves this as they would have to pay five times as much to get those phones manufactured in the US — which … yes, would make the iPhones more expensive, but would create more jobs and generate revenue inside our shores!

He has good points but then again the odds are highly in his favor. Make a list like that for the uber rich and you'll probably get it wrong. Making a list for the poor isn't that hard since most people are poor.

Bitter…party of one.

People need to stop whining about how others are spending and start worrying about your own finances.

This excerpt seems like someone is whining because they can't get the coolest phone on the market. I paid cash for mine and continue to pay cash for my bill while also living within my means.

Welcome to liberal america, everyone gets and iphone! When considering other expenditures, savings, home purchase etc… you need to make at least $85K to be able to really afford the iphone service plan, any less and you will be turning to the goverment looking for handouts and crying about how you cannot afford a home.

I bought the iPhone 3G and will hopefully by the 3GS if AT&T drops the price on it. How can I do that? You all forget or don't know that the 3G is an asset. I paid $260 and can sell it on ebay for that amount or more. So for me personally I'm upgrading without spending a dime.

As for those who look down on people that spend this much on a phone look at your own life. I'm sure you splurge on certain things. I have cable but on basic channels. I have a computer that was top of the line a year and a half ago but I built it myself thereby saving over 50%. I go out once a week and eat sushi…the rest of the week it's pasta and chicken for dinner and lean pockets for lunch. So yes I do spend more with tech stuff but I save money with other stuff. My TV is 6 years old (not even flat panel)!

I think going out to eat is the biggest budget buster on the list. I know people who can't seem to put any money into savings and yet they eat out almost every meal.

$10 a meal, lunch and dinner, M-F = $100/week or $400/month PER PERSON.

That's almost $5,000 a year – I think if most people realized the cost they would not eat out so much. Of course, eating at home costs something too, but it can be well under $5 a meal if you plan it right.

This article is spot on…

If there was a theme for the last 10 years it would be: "Monthly package".

Do you remember not too long ago (in the 90s) when buying a $100 phone was a big purchase? Now we buy $400 phones and spend $100 a month for service. Then we complain that gas has gone up $1.00 a gallon.

People just don't know the value of a dollar anymore.

This makes no sense. The iPhone 3GS is not a new phone. It is an iteration on a n existing phone. The original iPhone 1G was $399 for the 8GB model, the new 3GS is $299 for for the 32GB model.

People buying the "new" iPhone have made an excellent fiscal decision. They can go out and buy a 8GB 2G iPhone for $99.

Not every article has to have the word iPhone in it…

In general, these tips are so true.

Net worth is ultimately about financial decisions far more than income. I know many people who blow tons of cash on frivolities and then complain about "rich peeople". Yet if they just made better financial decisions they would be so much better off. For anyone who isn't already, get a monthly budget and use some good financial software like Quicken or Mint.com (which is free). I have no affiliation with either company but both are nearly necessities when it comes to achieving your financial goals.

Think about what cost are associated with purchasing items like this (i.e. – iPhone). Not only do you have to plunk down $200 or more to purchase the device, you must pay $30/month or more on top of your normal cell phone plan fees. Tell me what sense does this make? It costs as much or more than some broadband services for your home to get web access. People don't realize these things because most Americans are not smart with their money. So they get into the 'coolest' things that end up costing 'an arm and a leg' after the initial novelty wears off. We need to stop paying for this stuff and force the manufactures to offer lower more reasonable prices for services like this. Until we do, services and devices like this will only be for the 'early adopters' and will be old when all us less wealthy individuals actually get one.

The Obama administration spends money they don't have – the speed of the "leader" is the speed of the group.

You guys do realize the economy runs on people spending money. If everyone were to stop spending and saving, this economy would slow down further.

This blog is actually a stereotype. Its stereotyping the kinds of people that are "vip" and have large disposable incomes.

Some of this applies to me, however:

When I go out I do leave big tips, but I limit my going out. I have a first generation 4G IPhone that is over two years old. I rushed out to buy it and paid a lot of money for it then the price dropped, shame on me. Going to buy new generation 32GS IPhone soon. My computer is over 2 years old, my notebook 6 months old that replaced a 4 year old one that died on me. I just upgraded my cable to digital with 200 channels, I found out too late that if I requested to be bundeled with a land-line Phone and Broadband Internet that I already had with the cable company I would have paid the same amount that I was currently paying for only 70 channels, shame on me.

I don’t have an online savings account because a person in Asia tried to break into my brokerage account according to my broker; they had all my account information. My broker e-mailed me and asked if I was trying to make transaction in Asia. I immediately stopped my internet brokerage account. Even after re-formatting my hard drive the worm they put on my computer was still there. After that I don’t trust banking or even buying stuff on line no matter what anyone says, I will never trust it. Sure the Bank tells you that the communications into your account is encrypted but the pros know how to put stuff on your computer that even the best spyware protection doesn’t prevent. The thieves don’t go through the banking service encryption they go through your home computer. The crooks can extract all the typed messages from your computer when they knew you were logged into the Banking services, put one and one together they extract out your username, your password your account number and any other information they think is important in order to steal your identity. So in other words they go around the encryption through your computer not the banks….

@DC

You are just taking it to the extreme. Living in your parents basement would save a ton of money, but is not a practical solution to living arrangements.

I couldn't care less what other people spend money on. However, blowing through cash on silly, short-term assets that either have heavy depreciation or no long-term value at all, is a quick way to keep yourself living from paycheck to paycheck. Learning to control these habits (not even necessarily eliminating them) will provide financial freedom in the future.

I like my new electronics, love my DIRECTV, eat out frequently, am getting the new iPhone first thing tomorrow and am financially sound. I have a "fun account" that is fed from my direct deposit and I feed my vices from that account — an account that is funded after ALL my bills are paid, my retirement and savings accounts are contributed to and my current and future obligations are met. I will even pick up the tab from time to time. I'm just saying, you can have all these things, not be trying to impress everyone or be a braggart, but rather simply do it because you are intigued by it or enjoy it — even in this economy!

Obviously, he is stating that people who show more than one of the traits maybe spending irresponsibly. Let's face though, not everyone will fit the description but considering where America is debt wise per individual quite a few people qualify.

Don't spend what you don't have. I think its that basic. I am guilty of 3 items on the list. But in my defense I own my home and have no debt. It took driving 12 year old cars and other things to get me to this point so I feel no guilt in eating out, having a lot of cable channels etc.

I am just now upgrading my original 4 gig ipod nano that I paid around $250 for in 2005. My phone is in serious need of replacing and I am already a Cingular customer. So I get a much bigger ipod, a decent camera AND a phone for $200? Count me in. I also recently replaced my PC after 6 years and bought my first LCD TV last winter (replaced a 27" JVC from 1998). We are getting rid of cable TV and replacing it with a Roku.

We're not well to do, and we have some debt. We also don't mind having credit card debt. We are completely ok with giving someone money to allow us to have what we want right now. Just because your a saver doesn't make you better than anyone else. While you are living it up at age 75 giving 3/4's of your money to a retirement home. So old and feeble that you can't enjoy any of the money you so preciously saved. We'll be living it up now. Enjoying our life to the fullest. Life may suck for us when we're old, but being old sucks anyway.

I think, his comments are right on.

"They go through hobbies in weeks and go all out the second they start it. So this they want to bike to get in shape, they purchase a $800 racing bike, bike 3 times, then it collects dust after they move onto the next hobby."

you are stupid. "racing" bicycles are much more then $800.

Sort of. The list goes beyond basic money management into "things I find stupid" territory (IMHO). If you really want to get basic, don't buy anything you can't afford, ever. Live in your parent's basement and never go out.

I agree. Some people, especially college students, need to chill out on their use of credit cards. Just because you can pay it off in the course of your lifetime doesn't mean it's a good idea to buy.

If you can't drop $200 in CASH without second thought, you can't afford it.

This article and the blog are right on. I know a few not so well to do's so I laughed at the list. I have to smirk when people say they can't afford a house when they wear $200 jeans, $150 shirts, tote $200 cell phones with $100 per month cell phone bills and $100 per month cable TV bills. Not to mention two meals a day at restaurants. Add all that up and include their monthly rent of $800 or more and they could buy a house. Priorities people!!!

I have a few more that I want to add:

1) They convince themselves they need a ton of extra junk, prone to salespitches and gullible as to the usefulness of the product.

2) They go through hobbies in weeks and go all out the second they start it. So this they want to bike to get in shape, they purchase a $800 racing bike, bike 3 times, then it collects dust after they move onto the next hobby.

3) Buy high, sell low. Classic mistake. They want to invest on their own, but unwilling to put the time and effort into it. They buy whatever is hot, always hold out hoping for more, then end up riding the rollar coaster into a deep valley, sell and "cut their losses."

4) Quick with excuses. They blow money on worthless excuses and are questioned about it by someone, they have an excuse ready.

My roommate is one of these NSWTDs. He used to take MY tupperware and MY silverware to work. This wouldn't be a problem if he didn't throw it away/leave it at work after using it. When confronted, he produced the "Oh, these things just disappear." So, apparently I'm to believe that someone broke into our apartment, stole our tupperware and silverware and left the Wii, hundred or so DVDs (I'm a movie fan, it's my only vice, leave me alone!), laptop, and two desktop computers. I let it go and started keeping my tupperware where he can't get at it and have silverware stashed for when we run out (as I'm not purchasing more). If only this were an isolated instance…

Anyways, just thought I'd vent that irritating story. I'm sure someone out there can appreciate it.

Hi comments are spot on. "Early adopters" always pay a premium for electronics. Wait 6 months and it is yours for half the price. Those who continuously spend have nothing saved and are part of the problem in this economy. The people with proper savings can wade this downturn out much better.

I'm anxiously waiting to get my iPhone 3G S on Friday, but I wouldn't consider myself someone who has to have the latest technology. I'm simply replacing and upgrading my current phone (which is on its last leg anyways) and just decided to slurge on myself for once. In fact, I don't subscribe to the premium cable package nor do my wife and I eat out that often.

I would only add that people who are constantly on a cell phone (while driving, in the super market & in clothing stores) might be financially upside down as well. All this stuff kind of goes on with people trying to "be somebody".

as someone who got themselves in a huge debt hole ($40K in ccards alone), and recently got out of it completely…. a lot of what he says rings true. it's a ccard mindset, like you aren't spending real money. being all cash now, it hurts to put money out for just about everything that's non-essential. it's a different way of thinking.

Interesting, I know I am "not so well to do" and I only meet 2 or 3 of those on the list (flat screen TV, and outrageous expenses of $1000/month afterschool care plus extra for child support). I don't even own a cell-phone or have cable service, let alone the latest of any gadget (3 yr old tv, 4 yr old computer, 15 yr old oscilloscope, 10 yr old car).

Like the article says, anyone who has that much cash to plunk down for a new cell phone which is not even set up to work properly through its number one provider AT&T are just wasting their money. These times should be called the times of conservation not splerging on every new thing that comes out. Put your money in the bank and save it for a rainy day. After all if you are one of the lucky ones enjoying good times in this depressed era they are calling a recession, your day will come when you have to take a serious look at your finances and I don't want to hear you whining when times get tough. The Iphone is a nice creation yes but it's not everything. There are other providers out there whom one can use and save a considerable amount off of what Apple wants for the applications that you must download to enjoy the little creature comforts the phone has to offer. If nothing else, Go rent a DVD from the store and check your email at home. There can't be anything that important that it can't wait till you get home. I'm not a big Dave Ramsey fan due to his mixing religion with money but he is right in this one instance when he says that you have to have a little something put away fora rainly day. I believe he calls it an emergency fund not emergency credit cards. Credit and credit cards are partially responsible for getting us all into this mess.

There is a name for this in Dallas, the 30K Millionaire.