One of my friends is a self-proclaimed #1 Apple fan. He admires the company and the trends that they have created with Apple products. However, he admitted that he was not very much happy with iPhone X, well mostly with its cost, during one of our conversations. He suggested that there seems to be no major development in the phone category or any innovation as such. Many of iPhone lovers might be feeling the same thing since the day they came to know about the cost of latest iPhone model.
The new iPhone X was revealed in September 2017 at Apple’s keynote. The phone will go on sale on 3rd November 2017 in India. 64GB version is supposed to cost Rs 89,000 and the top-end option with 256GB will be priced at whopping Rs 102,000. This is the most expensive phone till now in the long list of expensive iPhones. The new iPhone X comes with features like Face ID, water-resistance, wireless charging and much more but the question still remains – “Is this new iPhone X, really worth our money?”
As hard it may be for us to answer that question for you, it will definitely be a great exercise to explore the options to use one lakh rupees instead of buying an iPhone X. This amount can help you enjoy a couple’s trip to Maldives in a Cruise, or an all paid luxury trip to Dubai for two or a couple’s trip to Bangkok is also a nice option. If you are a health enthusiast, then you can get ten years of gym membership for the same amount.
We obviously do not have anything against iPhones or iPhone lovers but we want to bring the attention to the opportunity cost of spending their hard earned money on iPhone X. You might want to consider other ways to use your money.
Let us now discuss few penny-wise smart options; for example, you can use Rs.100000 to plan your tax for the current year, if you haven’t done so far. You can save 30% of this amount assuming you come under highest tax bracket. If you were planning to buy iPhone on EMI then you will be disappointed to know that you will end up paying an extra Rs.10000 as interest to Credit Card Company. You can also invest this one lakh in either debt instruments or hybrid funds or equity, based on your risk appetite.
This money can also be used to build up an emergency fund for a rainy day or for retirement. Financial advisors suggest maintaining an emergency corpus equal to an individual’s annual income and it is wise to start saving small but regular amount as soon as possible.
Below are few options which we consider can give you a better deal than buying an iPhone X
Mutual funds are the best option to invest your money. They offer a variety of options for all kinds of investors. Mid-cap or Multi-cap mutual funds are suitable for aggressive investors which can give around 12-18% return on investment. Balance mutual funds are great for conservative or moderate investors looking for safe investment option with moderate returns. Balance fund invests in both equity and debt fund to maintain a balanced portfolio. They can get you almost 10-13% returns.
ELSS is a popular tax-saving investment option for many individuals looking to invest their money to get good returns and at the same time save tax. ELSS out-performs when compared to other tax saving options under Section 80C as it offers high returns (mostly above 12%) and has a lock-in period of only 3 years.
Gold is a safe bet against all odds. An individual can choose to invest either in physical gold like jewellery or in gold ETF.
Investment in equity is a high-risk option but offers a maximum return. Selecting accurate stocks at the right time is important if you want to create wealth by investing in equity. It needs extreme caution and sufficient knowledge.
Public Provident Funds
PPF is a prevalent tax saving investment choice for the long-term goal. PPF account promise steady and safe returns.
Bank Fixed Deposit
For conservative investors, bank FDs offer low-risk and fixed returns. The offered interest rate depends on the tenure and bank.
There are many more options available for all kinds of investors with various future goals. You can check with your financial advisor or contact us for more information on where to invest your money wisely.
“Buy things you do not need, soon you will have to sell things you need." This is a famous advice from Warren Buffett, a well-known investor. He is not an iPhone user yet but he has recently doubled his investment in Apple Company using his best money sense. We can all learn from Warren Buffett about how to make more money from money. The value of high-end luxury items will get depreciated in time and in case of iPhone, the same model might be available at half price in few years.
All over the world, people buy expensive items mostly to maintain their social status and for self-assurance. Big companies advertise their products in such way that the consumers are left with a feeling that these products are essential for living a certain kind of lifestyle. Hence, these companies are able to sell at sky-high prices.
We need to ask logical questions while making any big money decision. When did phone become a status symbol? It is supposed to be a mode of communication and help with day to day online tasks. Even if we buy a high-end phone, how many special features or apps will we be actually using in our day to day life. Following a trend can be fun sometimes but we need to use our better judgment when it comes to our money.