Gadgets: Are They Reaking Havoc On Your Budget?
In a CNBC article today, they chart the opportunity cost of buying an Apple product versus buying Apple stock with the same amount of money when that specific product was release. For example, they compare spending $2,500 on a Mac computer with investing $2,500 in Apple stock 1984. Today that $2500 would be worth over $400,000.
We are not suggesting swapping gadgets for stocks, but we are questioning the need for the latest and greatest and how that affects paying off debt and investing in our future.
What About the Cell Phone?
According Investopedia.com, the average cell phone bill in the U.S. has grown at a clip of over 15% annually. Wouldn’t you love it if your salary was growing that fast over the past 10 years? This points to the rise in the cost of maintaining the gadgets we own as well as using them.
What do you think? Which is the better choice? Is buying the new gadget worth it, or should you use the money for something else?