Budget Spotter: Cell Phone Plans
Save enough to go on a mini-vacation
“Is your cell phone and service plan a slow leak sinking your financial ship?“
For most Americans a cell phone is an indispensable tool. Not only are they used for work they are used for play. It is said that some 70% of web shopping is done on mobile devices, far outpacing that which is done on the run of the mill PC. Cell phones are sleek, portable, and some may argue a status symbol, however is your cell phone and service a slow leak sinking your financial ship? The answer is yes for most.
Cell Phone facts
According to Money Saving Pro the average cell phone in the United States is $80 per month for service and data. That is a whopping $960.00 a year.
In analyzing my budget I seek to minimize any expenditure that occurs on a regular basis. The obvious recurring bills are things such as the utility bill, car payments, and mortgage payments. The not-so obvious ones are like daily starbucks, toll charges, and cell phone bills.
According to Money Saving Pro the average cell phone in the United States is $80 per month for service and data. That is a whopping $960.00 a year. According to Seeking Alpha the median household income in 2019 is $59,055. That comes up to about 1.5 percent of the average American’s gross household income and about 3% of the net income (after taxes and benefits). You may think: That’s not too bad! But consider, the average cell phone plan in the UK is only $30!!!! Are they receiving a lesser service. No! They are saving at least $600 a year, which is enough for a round trip ticket to a nice place!
Tips for Saving on your Cell Phone Bill
1. Ditch the Contract
Ditch the contract and go Prepaid. Most major carriers offer prepaid plans. Try to choose a prepaid company that does not charge Fees. Preferably one that does not charge fees or taxes. Its what I call a WYSIWYG plan.If they say $30 you pay $30. Not $36.59
2. Evaluate your data plan.
Do you really need an unlimited data plan? The difference in most service plans has to do with the amount of data that is being used. Ask yourself do you really need unlimited data. The answer for most is no. Tip: Set your data usage limited to 3 Gigs on your cell phone and see if you reach that mark over the course of a few months if you don’t hit that limit you know that you can pay for a lesser plan.
Tip #1 Ditch the contract
Ditch the contract and go Prepaid. Most major carriers offer prepaid plans.
TIP #2 evaluate your data plan
Do you really need an unlimited data plan?
TIP #3 Choose an affordable option
Simple Mobile
Cricket
Metro PCS
and other …
Affordable Options.
My favorite affordable cell phone plan is Simple Mobile. There lowest cost plan costs slightly under $24 a month! I personally use this plan and it works great. Other bargain plans recommeded by nerdwallet.com are Ting and republic. I have no experience with neither. I’d like to hear your thoughts on making your cell phone bill affordable!
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