According to the Pew Research Center, 95% of Americans own a cell phone, and 77% own a smartphone. Since cell phones are such a large expense, we compiled some tips to help you save money on your monthly cell phone bill.
Avoid Data
One of the easiest ways to cut your monthly cost is to lower your data plan. For example, Verizon offers 2GB of data for just $35 per month, but a jump to 4GB will cost you $50 per month. How can you avoid using data? Stick to Wi-Fi whenever possible, especially at home or work. Another tip is to sign up for alerts from your carrier when you are nearing your data limits so you do not have to pay costly overage fees ($15 per GB on Verizon’s network, for example).
Study Your Phone Bill
Take the time to examine your monthly statement to make sure you are actually using all of the services for which you are paying. If you are not using emergency roadside assistance or enhanced voicemail, cancel these services. Also, see which data plan you are on and see if you are actually using that much data. If not, you may be able to downgrade to a less expensive plan.
As you examine your cell phone bill, keep track of how much you are spending on apps. While many are free, others cost money, and some even charge a monthly service fee. While most apps are pretty inexpensive, the costs can add up if you are purchasing several a month.
Decline the Insurance
While it may be tempting to add-on the phone insurance, you may not need it. Instead of spending the money on insurance, you would be smarter putting this money in a savings account so you can purchase a new phone in cash when you are ready for an upgrade or if something happens to your existing phone.
Shop Around
Even if you have been with your current carrier for many years, it never hurts to shop around to see how much you would be charged by another company. Try not to be dazzled by introductory rates. Determine how much each carrier will charge you in the long-term to make sure you are getting the best deal.
As you shop for plans, you will want to take advantage of any discounts for which you are eligible. If you are over 55, both AT&T and T-Mobile offer reduced priced plans. See if any of the major carriers offer a discount to your employer. Your human resources manager would likely have this information, or you can call your carrier and ask.
It is not a bad idea to shop around for a new plan every year, as companies are constantly changing their plans. Since many carriers no longer require contracts, you can switch fairly easily. Before doing so, track your data for three straight months to see how much you need. Then, compare rates based on your actual data usage.
Bundle Services
AT&T offers a discount if you use their mobile phone service, Internet and U-Verse TV service, but they are not alone. Cable TV giant Xfinity is now offering mobile phone services as wells as Internet and TV services. As you are shopping around for providers, you may want to see if you can save money by bundling services.
Choose a Prepaid Plan
While it may seem a bit old fashioned in this digital age, if you only use your mobile phone for emergencies or an occasional phone call, you may be better off with a prepaid plan. AT&T, for example, offers prepaid plans. You will not have a contract, and you can choose a plan ranging from $25 to $65 each month. The least expensive plan offers no data but has unlimited talk and text while the most expensive plan offers unlimited data, talk and text, though data speeds will be slower than a traditional AT&T plan.
Opt for Paperless Autopay
Many carriers offer you a discount if you opt for paperless statements and have your payment automatically deducted each month. On average, this can save you $5 per month. This will also making paying your bills easier.
Choose a Cheaper Phone
Finally, one of the easiest ways to save money on your cell phone bill is to choose an older phone and pay cash for it. Most carriers allow you to make payments on your phone and allow you to trade-in your device for a newer one every two years. While it may be tempting to do and have the latest-and-greatest device, ask yourself if you really need the additional features of a newer phone. Chances are, an older phone may meet your needs.