How I Saved $70 a Month on My Cell Phone Bill (And You Can Too)!

rwOne day this past Fall I woke and realized at age 26 I needed to get my life together financially if I wanted to pursue both my passion of travel and also return back to graduate school for my PhD studies. I’ve never been bad with budgeting and finance, but I’ve never been extremely good either. Back in October I sat down and created my Mint account to establish my first real budget that I was going to stick to while I worked to reduce my debt and increase my assets.

One of the first things I did was to scrutinize all my expenses and examine where I could cut costs. One stood out from the rest – my cell phone bill (okay, maybe Starbuck trips were up top there too). My plan with Verizon, which included about 500 minutes of talk, unlimited text, and 2GB of data on my iPhone 4 cost me a whopping $96.98 (including taxes). I was paying close to $1200 a year for something that wasn’t used much. That $1200 could easily go to paying off my student loans!

My Verizon contract expired in September of last year so I was free to change plans to whom ever I decided would meet my needs. I looked into AT&T, US Cellular, T-Mobile, and Sprint. The cheapest plan I could find at the time was Sprint at about $70-$80 a month. That would give me about $10 a month or $120 a year in savings, but I knew I could do better.

So I did what every normal person would do and “googled” cheap/budget phone plans. At first I was convinced that I would do a Straight Talk Wireless plan. Straight Talk offers no contract and unlimited talk, text, and data for $30 a month plus taxes. Not a bad deal I thought! And then I found out that you had to pay full-price for a new phone! My Verizon iPhone would not work on their system so I would definitely have to purchase a new phone. For a new (or used) iPhone I was looking at a price tag of $400-$650 for a new phone depending if I purchased a used iPhone 4s or a brand new iPhone 5.

I kept Straight Talk as a strong contender, but I really hated the idea of dropping over $500 for a new phone. At first during my new cell phone plan search, I was set on getting an iPhone. I wasn’t until I found Republic Wireless that I was open to switching to an Android phone. I found Republic Wireless through Mr. Money Mustache’s website. He is one of my favorite personal finance/frugal living bloggers. He spent a lot of time researching and trying new cell phones that fit his frugal lifestyle. Republic Wireless was his winner and continues to be so today. If it was good for him (and many other frugal bloggers) then it would be good for me.

Republic Wireless is a special wireless company. You can now choose from two phones: the Moto G ($149) or the Moto X ($299). When I made the switch in January I only had the option of the Moto X. You only have these two options because these phones are made especially for Republic Wireless. Republic Wireless had extremely low cell phone plan pricess because the company builds in a wireless transceiver into each phone. If you’re in an area with wifi your call will be made over the wifi connection. However, if you’re in an area with no wifi, the call will be made over the Sprint and/or Verizon cellular networks. The phone will automately switch from wifi to cellular if you walk outside the wifi zone (it’s worked great for me).

I’ve been using Republic Wireless since January and I love it! I purchased the Moto X for $299 plus taxes. I love the phone! It does everything I need it to do and the camera is about 1000 times better than the camera on my iPhone 4! You can google reviews of the Moto X for more details and comparison to other phones. I’m not a techie and I’m even going to pretend to be one either! 🙂

Republic Wireless has 4 plan options:

For the first four months I used Republic Wireless I used the $10 a month plan because about 90% of the time I was surrounded by wifi spots. It worked great for me and allowed me to recoup some of the costs I spent when I purchased the phone. In May I switched to the $25 a month plan because I would be riding my bicycle outside and wanted the ability to use Google Maps to find out where I am if I got lost. Thus far, my reception has been great. Of course, if you are considering changing to Republic Wireless, make sure you check their coverage maps HERE.

One of the best things about Republic Wireless is the ability to switch between the plans twice a month. When I travel out of the country (like my trip to Belize and Guatemala in May), I switched to the $5 a month plan for that week and as soon as I hit tarmac in Atlanta, I switched back to my normal monthly plan.

Another major benefit, which I haven’t used yet because I wasn’t aware of it until after my trip, is the ability to make calls out of the country back to the US if you’re on a wifi network. For example, when I was using the wifi on my phone at the hostel in Belize, I could have called my father in Maine. As noted above, I have not used this feature yet so I’m not 100% sure of the quality.

Let’s look at a comparison of the three cell phone plan options I narrowed down on:

Wireless Company

Monthly Payment

Cost of Phone

Yearly Cost of Plan (including cost of phone)

Verizon

$97 (w/ tax)

$200 (upgrade to iPhone 5)

$1364 (+ 2-yr contract)

Straight Talk Wireless

$33 (w/ estimated tax)

$550 (for iPhone 5)

$946 (no contract)

Republic Wireless $29 (w/ tax) $300 (for Moto X)

$648 (no contract)

It seemed like a no brainer when looking at the above table. Because I chose the $10 a month plan for 4 months, I should only pay about $605 for my total 2014 cell bill. If I had stayed on Verizon without upgrading my phone, I would have paid roughly $1164. I just found an extra $500 a year just by changing cell phone plans!

If you’re looking to change cell phones and save a boat load of money, I highly suggest checking out Republic Wireless! As a loyal Republic Wireless customer, if you use my referral link you can get a $20 credit (and I will also get a $20 credit). Win, win for everyone! Here is my referral link: Try Republic Wireless. Republic Wireless also offers a 30-day money back guarantee so if you don’t like it, you’ll get your money back! 🙂

** The above link is a referral link. As I mentioned above, I will earn a $20 credit if you decide to switch to Republic Wireless using my link. Republic Wireless did not pay me for this post and all my opinions are my own. Obviously, I really love this plan and phone or else I would not be using it and promoting it! 🙂

 

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