Anyone here good with numbers?

[andrewducker]

I'm currently looking at the difference in price between going to a Samsung Galaxy Nexus by getting a contract (£35-ish/month) or by buying up front (£480+10/month). This works out to about £120-£140 cheaper by buying the phone myself, depending on exactly how I do it.

My question, then, is about discounting future costs. If I spend £480 now rather than in chunks then I lose the utility of that money over the next two years. How does one account for that?

I assume there's a simple equation I could plug in that would tell me to stop being so stupid and just buy the fucking phone, but I'd like to be sure...

Comments

[matgb]

James (magister) says you're better off buying it now for a number of reasons assuming it's money you've got, but he's one of those people that can do the maths in his head without necessarily then knowing the working (he can work out tax due on earnings, including thresholds &c, in his head if given an hourly rate and hours worked, scary stuff).

I think there's another reason. I'm tied to both my phone and my existing contract for another 18 months. Now, I like my phone, and the contract is OK and suits my needs, but if circumstances change, or a new deal is available, I'm stuck with it, but if you buy the phoen outright you can switch deals to get the best data costs &c without any hassle.

Ultimately, money up front plus small monthly fee is probably better, especially given interest rates and similar are very low currently, but I can't do the maths on that.

[andrewducker]

Gotcha. Not that I have £500 right now, but it sounds like any end-of-year-bonus I get ought to be spent buying the phone.