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How much phone can I afford on $60k salary?
My take-home is roughly $3,500 a month after taxes and deductions. I'm trying to figure out a reasonable budget for a new smartphone, including the device itself and the monthly service plan. I'm not looking for the absolute cheapest option, but something that offers good value and won't break the bank. I also want to upgrade every two years. What's a responsible price range to aim for?
3 Answers
14
22d ago
Aim for a phone that costs no more than one week's take-home pay, so around $875. Finance it over 24 months to keep the monthly payments predictable. For the service plan, try to keep it under $75/month if possible. This approach keeps the total cost of ownership manageable without sacrificing quality.
4
15d ago
A good rule of thumb is to keep your phone cost under 5% of your monthly take-home pay. Assuming roughly $4,000 monthly after taxes, that puts your phone budget at around $200. You might be able to swing a payment plan on a more expensive phone if you really want it, but consider the long-term costs of interest and potential early upgrade fees. Used or refurbished models offer significant savings if you're okay with slightly older tech.
3
21d ago
A good rule of thumb is to allocate around 1-2% of your annual gross income to a new phone. This means on a $60k salary, you're looking at a budget of $600-$1200. Since you want it to last for several years, aiming for the higher end of that range is reasonable. You could comfortably afford a current-generation iPhone or Samsung Galaxy model without breaking the bank. Financing options from carriers or retailers can also help spread out the cost.