Should I Buy Mid-range or High-end Smartphone?

If you're a gadget guy like me, you're always interested in the high-end smartphone rather than the mid-range one. However, the problem is this high-end smartphone will usually become a mid-range smartphone after less than a year and this makes it pointless for your to aim for a high-end smartphone anymore.

Here I list down the reasons (other than the above one) why I think mid-range smartphone is good enough.


Reasons Mid-Range is Good Enough

• It is a lot more cheaper as compared to high-end smartphone. You can get 2x cheaper for mid-range but do you get 2x features and speed? Obviously no.

• The usability and features are 99% the same. What can be done in high-end smartphone can be done in mid-range smartphone too. It is about the OS version that it runs. :)

• Yes it runs slower than the high-end smartphone due to processor speed BUT after you install whole bunch of applications, they're both slow! So what is the difference? lol

• No one knows you're carrying a mid-range smartphone because it looks almost the same with the high-end one. Look at Samsung Galaxy products, they all look the same!

• Screen resolution is usually lower for mid-range smartphone but do you know it runs faster with lower resolution? The font is big which makes it easier to read also.

• Some mid-range smartphones have dual SIM card support which is extremely useful for those who travel oversea often or those who carry 2 phones. Most high-end smartphones do not have dual SIM support now.

By the way, Camera and video recording is important, at least to me. Aim for those mid-range smartphone that offers equal or slightly lower camera and video's spec than those high-end smartphone.

That's the reason I bought Samsung Galaxy Grand lately!!! lol :) It serves all the above reasons and also with high camera and video's spec. :)

Honestly, if you're planning to buy smartphone, let's aim for the mid-range smartphone will do. No point go for a high-end one from personal finance perspective. Save your money and at the same time you still can achieve the purpose that you want to do with the phone. :) Just my 2 cents...


P/S: Perhaps that is also the reason iPhone is slowly died off because they don't have any mid-range phone? :)

I Need Money, Help!!!

Have you ever helped a friend or a relative by lending your money to them to solve their financial problems especially related debt? If yes, you may want to continue to read on because I don't think you're helping them. You're probably making their financial condition even worst and eventually ruin their life!


Why Lending Money Does Not Work?

The obvious answer is it doesn't solve the root cause of the problem which is due to "lack of  financial planning knowledge".  If this is not solved, no matter how you help that person, they always come back to you with a same problem again and again. What you really want is "teach him/her how to solve their own problem!" so that they're independent enough to solve their financial problems next time. This solution is forever and will last. :)

So, don't straight away lend your money first...


Explore Alternatives Instead

Although it seems like lending your money is the only solution and it is often not the case. The first thing that what you need to do is guide them ask themselves this question - "if no one is going to help you, what else can you do"? Explore the alternatives together with them.  Here are some I can think of:

• List down all expenses and see which one can be cut down. Insurance is the tricky one because often being understood as necessity which is not true especially when one fails to pay their own debts. Let it go although it is a lost (due to insurance is not mature yet) and start thinking to switch them to term-life insurance if really need to be insured. Know more about term-life insurance, visit here. I talked about it at very high level. :)

• Start looking at their assets and see which one are not necessary. If the debt interest is 15%, can the assets generate 15% of return? If no, then it is probably time to let go of these assets. Sell them and use the money to pay the debts to reduce the principal. Some time you need to force them to sell. :) Assets are those include houses, properties, real estates, cars and investments (e.g. unit trust and stocks).

• Get a spreadsheet to work out a monthly cash flow. Make sure it is not deficit, your expenses cannot be more than your income. If yes, you need to redo the above 2 steps. Find a way to make it surplus (i.e. income more than expenses). Put 10% of your income for saving and the rest is the remaing amount (after deduct all your expenses) that  you can use to pay your monthly debt installment, let's say RM 1K. 

• Finally, look for AKPK (specific to Malaysia only) to reduce debt interest. The good thing about AKPK is it stops them from accumulating more debts immediately. I documented down the whole AKPK application process here for your reference. Use this RM 1K as your negotiation with the counselor on amount of money that they can pay in order get an optimum reduced interest rate.

You Still Can Lend Them Money

Ultimately, you shouldn't lend your money if possible but sometime no choice. :)

You still can lend them money only after a proper financial planning has been done on how and when the debt can be settled. In other words, a sustainable plan needs to be came out first. Your money should be a minimum amount money that able to help them have surplus cash flow starting from now for example. Don't lend them more than that.

For the money that you lend to them, I would suggest you charge them interest rather than giving them zero interest and ask them to come out a proposal on how they can pay you back. Your money should be included as one of their debts in their financial planning.  From this exercise, you can assess how much they know about financial planning.

If it is negative, the problem is not solved yet. You need to pay more effort. It is not easy to get everyone understand financial planning. Good luck!