Do you remember the iPhone you bought last year that seemed completely worth signing up for the 2-year contract extension? Well, this year, the iPhone has improved once again with a larger hard drive, video capture and a keyboard that can flip sideways for easier texting. So, with all the improvements, is it time to get a new iPhone? That depends on how fat your wallet is, and how thin you'd like it to be.

If you are less than half way through your contract, you wouldn't qualify for the upgrade prices of $199 for the 16GB version or $299 for the 32GB version. However, you may qualify for an early upgrade discount, which brings your price to $399 for the 16GB version or $499 for the 32GB version. Conversely, breaking the existing contract with ATT would cost you $175 (and without a contract, you're looking at $599 for the 16GB version, or $699 for the 32GB version, of the phone).

There's nothing wrong with "iLove," but it might be more financially responsible to only fall in love with a new phone every two years.

But what about that glorious iPhone that's screaming your name this year, flaunting its video capture features in front of your face? As great as this phone is, will you still feel good about your purchase when the bill comes in – and when next year's "new and improved" iPhone is released. Chances are, you're better off waiting, saving a bit of money and purchasing next year. Your wallet will thank you.

(For more information on budgeting, and iPhones of the past, read Dialing In On The Credit Crisis, Six Months To A Better Budget and Say "I Do" To Financial Compatibility.)

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