Is 32 GB enough storage for an iPhone 7?

I don't take a ton of photos, although I do have a few Spotify playlists downloaded (50-100 Songs). I don't really have games, or have many apps, just instagram.

Should be enough, but I would at the same time at least suggest a 128GB model (if buying new) since its $100 more for 4x more space so you would have more of a cushion.

I had a 128GB 7 now a 64GB XR & somewhat regret not going for the bigger capacity

Yes.

That will be enough

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