The Economics of Unplugging
How a Dumbphone Revolutionized My Finances
Trying something new with this poll. The answer will be in this email/post, but please answer the poll before reading :)
Introduction
For nearly a decade, from 2011 to 2019, I was captivated by the allure of the latest gadgets. Whether it was the newest iPhone, the latest Galaxy, or even the Nokia Lumia devices that now seem like relics, I found myself perpetually caught in the cycle of upgrading. The tally of my tech expenditures soared past the $10,000 mark, a sum that I justified with my stable income and a desire to stay ahead of the curve. In retrospect, however, it wasn't just money I was spending; it was also the chance to cultivate richer experiences that got bypassed. I didn’t spend money on vacations or experiences. It all went down on objects I no longer possess. That all changed in late 2019 when I switched to a dumbphone—a decision that has not only redefined my relationship with technology but also revolutionized my approach to personal finance.
From Excess to Essence: Refining My Needs
The first step on my journey to financial mindfulness came in the form of rethinking my phone plan. Previously, I was shelling out $40 a month on Verizon for an "unlimited" package that, in hindsight, was anything but limitless in value. The reality hit me when I transitioned to a dumbphone and downgraded to an $8 US Mobile plan1, offering me 2,500 minutes, 2,500 texts, and a modest 500MB of data. Not only did I maintain adequate coverage, but I also started questioning the excess that had become normalized in my life. This seemingly small change was the tip of the iceberg. It unveiled a broader tendency in our culture to constantly seek 'more'—be it data, features, or subscriptions—much of which we seldom utilize but always pay for.
A domino effect ensued, reaching far beyond my phone habits. By shedding the 'need' for a feature-packed smartphone, I also began to evaluate the necessity of other subscriptions in my life. Services like Spotify and Netflix2, previously thought indispensable, suddenly became negotiable. I reverted to simpler, more tangible ways of enjoying life—buying my favorite music albums outright and savoring the experience of watching a movie in the theater with my wife. The lack of apps and features on my dumbphone was not a limitation but rather a liberation. It granted me the space to slow down, evaluate whether subscriptions were necessary, and cut services that were only draining my bank without providing value.
The longevity and sustainability of dumbphones also speak volumes about how this switch can impact one's financial health. With many smartphones today engineered for obsolescence—take, for instance, the recent controversy surrounding iPhone 14 batteries—the economic toll of maintaining a high-end device can add up quickly. Dumbphones, particularly models with replaceable batteries, offer an escape from this vicious cycle. These devices can last until their batteries go out of production, effectively bucking the trend of forced technological upgrades and, in turn, saving you money in the long run. By simplifying my technological needs, I was not just cutting back on costs but also investing in a more sustainable lifestyle.
Swipe Less, Save More
In the era of smartphones, the convenience of in-app purchases and online shopping is often touted as a benefit. While it might save a few moments of time, it also makes it dangerously easy to spend money.3 Before switching to a dumbphone, I would often find myself making impulsive in-app purchases, whether it was for additional features in a productivity app or some sort of digital goods in a game. These microtransactions, often dismissed as just a dollar or two, would accumulate over time into a significant sum.4 It was as if my smartphone was a pocket-sized shopping mall, with endless temptations lurking behind each swipe.
In addition to in-app purchases, shopping apps like Amazon, eBay, and Poshmark have further streamlined the spending process, making it almost too easy to part with our hard-earned cash. With a smartphone, purchases are just a click away; a fact that these platforms capitalize on with features like "one-click ordering."5 This simplicity removes the friction usually involved in buying—there's no need to check your bank account, no time to question the necessity of the purchase, and no physical transaction that makes you aware of the money you're spending. By the time the package arrives on your doorstep, the speed and ease of the transaction often disincline you from considering a return, even if the purchase turns out to be outside of your budget.
This lack of friction is particularly problematic when we're buying things that we convince ourselves are "necessities." Sure, we all need household items, clothing, and other essentials, but the effortless nature of smartphone purchasing bypasses the critical thinking we'd usually apply to these buys. It doesn't give us time to consider alternative, potentially cheaper options, or to even ponder whether we need the item at all. A dumbphone changes this equation entirely. Without the ability to access these shopping apps, you're forced to wait until you get home to make that purchase. This imposed delay offers a precious window for reflection, allowing you to evaluate the true necessity of each potential buy, ultimately leading to more thoughtful and less impulsive spending.
The Intangible Benefits
The transformative power of switching to a dumbphone is perhaps most evident in the realm of focus and productivity. Without the constant disruptions of social media notifications, emails, or the endless rabbit holes of the internet, your mind can fully immerse itself in the tasks at hand. This increased productivity can translate into palpable financial gains: think of the bonuses or promotions that come from excelling in your job. Yet, the benefits aren't just work-related. The time saved by higher productivity can be funneled into endeavors that either yield additional income, like a side hustle, or enrich your life culturally and emotionally.
Switching to a dumbphone has an ancillary benefit that's less obvious but equally crucial: improved mental well-being. Reduced work-related stress translates into a healthier lifestyle, potentially leading to fewer sick days and a decreased reliance on healthcare—both of which are financial wins. When you aren't tethered to a smartphone, you discover the time for valuable personal growth activities. This could mean cooking more at home, thus saving money otherwise spent on restaurant bills, or diving into DIY projects that offer both therapeutic and financial value. These individual acts may seem small in isolation, but their cumulative impact on your life can be both financially and emotionally rewarding. The time and focus reclaimed from not being enslaved to a smartphone allows for meaningful allocation of your resources, be it for travel, education, or investments.
Concluding this journey of self-discovery and financial prudence, one must not overlook the undeniable value of human connections that a dumbphone can help foster. Amidst the quantifiable advantages like increased productivity and mental well-being, lies a less tangible yet equally invaluable benefit: the deepening of interpersonal relationships. Opting for a dumbphone shifts the focus from screen to face, allowing for more meaningful, attentive interactions. This sort of emotional intelligence pays dividends that, while not directly monetizable, enrich your life in incomparable ways. Your relationships become not just social niceties but deeply fulfilling connections that can offer emotional support, professional opportunities, and even financial benefits in the long run. If we're talking about a life truly well-lived and finances well-managed, then the investment in real human connection, made possible by stepping away from the smartphone, is perhaps the most profitable investment of all.
What’s Next
As I look ahead, I see a horizon ripe with opportunities for further simplification and financial optimization. My journey with the Light Phone 2 and other dumbphones has been enlightening, teaching me not just to be frugal, but to find value in the essentials and experiences over ephemeral possessions. Taking this wisdom to heart, I am preparing for a significant step: cutting my home internet connection by the end of the year. This decision, while seemingly radical, is poised to save me an additional $50 per month. My plan is to rely on open access points, libraries, or hotspotting when absolutely necessary, thereby consciously choosing when to be online, rather than it being the default state of existence.
Beyond the digital realm, my ambitions stretch into the very fabric of daily living. Inspired by the patience and focus I've gained from using a dumbphone, I am eager to venture into sustainable practices like starting a small garden in my condo. The goal is to cultivate my own vegetables, fostering both a connection to the earth and a more cost-effective lifestyle. This aligns well with my broader plan to audit my finances with increasing regularity, enabling me to allocate more resources for life-enriching experiences and less for consumer products that don’t add lasting value. The discipline I've learned from my dumbphone experiment has set the stage for a future of financial prudence, conscious living, and deeper human connection. And for that, I couldn't be more excited.
US Mobile is a Verizon MVNO. I retained the same coverage without the cost. I highly recommend you look into MVNOs even if you are to keep an unlimited plan.
My new way of enjoying streaming services like Netflix, Hulu, Disney+, [insert your streaming preference], etc., is to wait until all episodes of the show are released. Then, subscribe for 1 month, watch the show, and cancel.
This study is fascinating to me. I had already heard about the difference between using a debit/credit card versus cash. The tap-to-pay phenomenon, however, takes it to an even more alarming level of frivolous spending.
To my shame, I have spent at least $250 on FIFA or NBA 2K in-app purchases. I did get an Emerald Luka Doncic though, so it was “worth it.” 😅