I’ve got an iPhone 6 for my work phone updated to the very latest IOS and it works fine, not laggy at all. It’s a 64Gb version and still loads of memory left on it despite having loads of photo’s. I use Spotify mostly for music so no need to carry around terabytes of music…but even so on my 32Gb personal phone I’ve got thousands of songs on there and it takes up naff all memory as it’s ripped down to 256mb for the phone and sounds perfectly fine through ear bud earphones.
If I were you I’d be efficient about the use of memory and spend the money on the better phone, so 7 instead of 6 purely for longevity. My personal iPhone 5 is now unusable, battery has basically died and it runs so sluggishly, so better having the better phone in my opinion…you can always work within the memory limitations if you’re not lazy.