Over the past couple of years, the hubby and I have slashed costs wherever possible including getting rid of Sky TV, cutting the food budget down by half and making do with what we’ve already got.
One area where we’ve struggled to save money though is on our mobile phones. We’re not paying over the odds by any means but it is one area that we constantly battle with ourselves about, wishing we could save more.
We’re on a monthly contract deal which is tied in for two years – which seems like an eternity when it comes to mobile phones. We did consider getting a pay as you go deal but we didn’t have the money that we needed to buy a new phone each outright. We both use our phones for work and need a certain amount of functionality other than just making calls and sending the odd text. A data plan is a must!
Anyway, our contracts came up for renewal a couple of months ago and we had waited very patiently for two whole years previously until the time came when we were eligible for a free upgrade. During that time, because we didn’t have any insurance (seemed like a waste of money every month); we had to make do with both our old mobiles basically wearing out.
Two year contracts are just too long!
We both had Blackberry smart phones and even though I still think they’re really good phones, two years seems like such a long time when faults start appearing. My mobile kept switching itself off randomly and losing wi-fi access and the hubby’s trackpad completely broke which meant he couldn’t scroll through the various screens.
Luckily, the hubby was able to fix his trackpad himself through watching a YouTube tutorial and by repeatedly turning mine on and off several times a day, I managed to make do until those two years passed. It seemed like such a long time to wait!
Then, the day came when we were able to upgrade our mobiles and it seemed like every contract on the table was for two years. In order to get a contract that wasn’t tied in for so long, we’d have to pay through the nose for it, so again we felt like we needed to go with another two year contract in order to get a reasonable monthly bill.
Offsetting the cost of mobile contracts
One way we managed to claw back a little money in this whole experience was by trading in our old mobiles. We managed to trade ours in as part of our deal this time with our mobile phone provider, but in the past we’ve used sites like Cash in Your Gadgets or eBay to sell our phones.
I must admit we haven’t had much success with selling old phones on eBay though – for some reason, we’ve had bidders pull out several times, maybe that’s a frequent hazard when selling this kind of item? Cash in Your Gadgets was great though for the no hassle factor and free postage too.
We’re really happy with our new mobiles – both of them work very well at the moment of course! But the frugal side of me thinks there must be a better, more cost effective way of getting a decent phone without paying too much money out. I’m wondering what to do when our contract comes up for renewal next time. What would the financially savvy person do? Should we save up to buy a mobile phone outright, possibly second hand and then get a pay as you go SIM card?
My concern from that point of view is that mobile technology is changing all the time. For example, how long would it be before a second hand paid for phone wouldn’t work as it should do? Therefore, should we carry on getting the best value monthly contract?
What do you do with your mobile phone to try to save money?
*Image courtesy of Flickr and modified by Disease Called Debt
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By the way, I’m guest posting today over at Shoeaholicnomore! Please head on over to read my post on how to Accelerate Debt Repayment with Multiple Side Hustles.
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8 Comments
Before I get a plan for a phone, I don’t mind if it’s new or not, and I just get the services that I need. With that, I save money. What I do is I talk to a customer service or the personnel in charge to make the plan personal suiting my needs. Everything should be clear before I settle with the contracts. Good thing is that I am very inquisitive.
Jayson @ Monster Piggy Bank recently posted…We are selling our house and here’s why
I always try to get only the services I need but I always seem to go outside of my contract allowance! My usage seems to vary month to month. I need to keep more of an eye on it. Thanks for the tips Jayson!
You can always find deals on phones when the latest models come out. When the iPhone 6 came out the iPhone 5 could be picked up cheap. I think this is a good way to save as long as the older model meets your needs.
Brian @ Debt Discipline recently posted…Commission
Thanks Brian – we did get an oldish model which was around 6 months old which was cheaper because another model came out. Hope it lasts the two years though! 🙂
Hi Hayley,
Completely agree that phone contracts are expensive. What we did was to buy a Lumia 520 for £60 and set up a sim only plan with Three for £10 per month. This was a lot cheaper than two £35 contracts.
Whilst the Lumia 520 phones aren’t the best they do a reasonable job for the price.
Rob recently posted…7 Questions About Getting a Secured Loan with Your Home
Two years is a LONG time. My phones never seem to work well for that long. Usually I can get about 12-16 months out of a phone before it has huge glitches. Then I have to upgrade early which costs an additional $10/month for each month until you hit the 2 year mark. For example, if I upgrade at 16 months, which is 8 months early, it costs me $80 + the new phone’s 2 year contract price. Ugh!
Kayla @ Shoeaholicnomore recently posted…Guest Post: Accelerate Debt Repayment with Multiple Side Hustles
I’ve always been a big iPhone fan and I found out earlier this summer you could get a cheaper plan involving using less data. It’s something if you call AT&T they don’t tell you about…it was actually the apple store guy who told me about it. So I saved 30/month just because of that. Since my bill is around 65, I’m OK with that for now.
Tonya@Budget and the Beach recently posted…Wacky Wednesday
I decided to go with RW and pay the upfront cost of the phone and reap the long-term benefits about a year ago. The positives far outweigh any negatives and the overall savings is for real.
Even Steven recently posted…Confessions of a Landlord: I Raised the Rent