Tuesday, December 9, 2014

Saving money on the phone bill

My phone expenses will go up in December, but it will then come way down. The reason is that I had been paying $5 per month for an 80-minute calling plan, plus $34.95 per month for unlimited plan with puretalk USA, for a household of two. Then I found Republic Wireless which offers unlimited plan at $10 plus tax per month and decided to switch on December 1. I paid $116.63 for a Republic Wireless Moto E phone (shipping and tax included), and $12.92 for first month's bill (tax included), for a total of $129.55. Add that to the $5 per month plan, and my December phone expense will come in at $134.55.

However, looking forward, I will only pay $17.92 per month for cell phone expense. That is a saving of $22.03, or 55%, from the prior $39.95. The phone will pay for itself in under six months. Assuming the phone lasts at least 2 years, my phone expense over two years will be $546.71, which is a saving of $412.09, or 43%, from $958.80 under my old $39.95 per month plan for two lines.

That surely puts a smile on my face. Just today, I came across an article saying the average monthly cell phone bill has soared in recent years to well over $100. Spending $100 per month means $1200 annually, which requires $30,000 capital to produce at 4% interest rate. Is your cell phone really worth $30,000 to you?

2 comments:

DivHut said...

Over a year ago we were tired of our crazy cel phone bill and home phone. You might want to read about two services we switched to, Ooma for home phone (unlimited calls for about $4/month) and Ting for cel service. My wife and I pay about $27/month including tax for 2 cel phones. I Saved $372 On My Home Phone http://divhut.com/2014/05/i-saved-372-on-my-home-phone/ I Saved $354 A Year With Ting http://divhut.com/2014/05/i-saved-354-a-year-with-ting/

Journey to Total Freedom said...

DivHut:

Thanks for stopping by! As a new blogger, I appreciate all the support I can get :)

Looks like you got a good deal on your phone plans as well. Thanks for sharing. I find it mind-boggling how the average American is spending well over $100 per month just on cell phone bill; that would really put someone behind in the journey to FI.

Take care!