With companies vying for consumer interest and a crowded smartphone release cycle, you'll likely feel the pressure to upgrade to a new smartphone sooner than expected. After all, within six months manufacturers are already promoting the latest and greatest release.

But do you really need to upgrade your device? Here are five questions you should ask yourself before choosing to upgrade to a new smartphone.

1. Does Your Budget Allow for a New Smartphone?

The very first thing you need to consider when it comes to getting a new smartphone is your budget. Premium smartphones are going for higher prices than ever, with more and more new phones exceeding the $1,000 mark.

If you don't have much disposable income, the last thing you need to do is purchase a device that loses a significant portion of its value as soon as you open the box. If you are buying on contract or credit, this locks you into a monthly payment. Other considerations include interest on credit purchases or potential penalty fees for early contract cancellation.

Even if a shiny new gadget looks tempting, you need to take a realistic look at your own finances first. There are many budget devices on the market that you can choose. But if your current device is a recent flagship, upgrading to a budget device could prove to be a downgrade instead.

2. Has New Smartphone Tech Advanced Enough?