If you’re giddy over the announcement of iPhone 5 but struggling with your smart financial side, I have a couple tricks for you! The problem with being married to a geek is the technology is constantly changing, and he always wants the next big thing. We can’t afford annual updates, even with the contract discount offers. However, taking advantage of a few tricks such as gadget recycling & upgrade pricing, has kept the hubby on top of the latest iPhone.

Here is my best secret—selling your current iPhone to offset the cost of the new one! The most recent iPhone 4 auctions are ending in the $200-400 range! The upgrade price on the iPhone 5 will start at just $199. The problem with eBay is you’ll be without a phone in the interim. Or, you can take the risk of buying the new one, then selling your old one to get your money back.

In the past, we have taken a less risky route—getting an official, guaranteed offer from Gazelle before spending money on the upgraded phone.

You tell them about your electronics, they make an offer, and you have 30 days to deliver the item. Once they have a chance to inspect it to verify condition, they’ll send you a check (or Amazon gift card—your choice!). They’re currently paying over $150 for the 16gb iPhone 4—almost enough to cover the cost of the iPhone 5!

You could also consider a direct sale through Craiglist or your newspaper classifieds. The advantage there is you can arrange it for September 20th so you make your sale & upgrade to the new phone on the same day! The disadvantage is you’ll have to work a little harder, plus you’re limited by location and left to handle the details on your own.

Whichever option you choose, keep in mind the resale value of the current iPhone will drop as the release date approaches!

Sell Your Old iPhone:

• Craiglist
• eBay
• Gazelle

A version of this post was originally published on June 8, 2010 for the iPhone 4 release.