Reduce Your Mobile Phone Bill in 14 Simple Ways
In this article, I outline 14 simple yet effective ways to reduce your mobile phone bill and save you some money.
We live in a day and age where cell phones are part of our day-to-day essentials. Mobile phones allow us to communicate with our families, find the best restaurant in town, and watch wholesome videos.
However, having a mobile phone can be expensive. First, the cost of getting one has skyrocketed throughout the years. Then, you must pay for a mobile service to be able to use it for all its intended purposes.
Fortunately, you can try some ways to lower the cost of your phone bills and help you save hundreds, if not thousands of money.
Below are some simple ways to help you cut your mobile phone bill.
Table of Contents
1. Reduce or remove your insurance cover
Some providers either sneakily add insurance or entice you to buy it when you sign-up for a device plan. Phone insurance typically costs $10 to $15 per month or $120 to $180 per year on top of your mobile device cost.
Even if you intentionally elect to have phone insurance for fear of breaking your screen or other reasons, it is usually unnecessary.
Some credit cards will automatically provide an extra warranty, theft protection and other default insurances when you use them to buy a phone.
But if you do not own one of those cards and having insurance allows you to sleep more peacefully at night, keep it. However, check your insurance policy to assess whether it still suits your needs. Downgrading your policy may provide you with enough cover.
If your phone is already a year old or two, it is not usually practical to be covered due to price depreciation. You are better off keeping your money stashed away for repairs or buying a new one if required.
2. Buy your phone outright
In the past, phone carriers will give you a free or cheap phone for simply signing a long-term plan (12 to 36 months). Those days are clearly gone so please think twice before committing to a contract.
Device payment plans can be an attractive option because it spreads the cost of the phone across many months. If you do the maths though, it ends up more costly overall. You are stuck with a single provider and will usually get stung with an early termination cost should you break your contract.
If you can afford it, buy outright. Remember that you do not have to purchase a mobile phone soon as it launches. Wait for a few months for sales. You may even consider last year’s model or get the mid-range phone rather than the top tier one.
You could save heaps if you combine these tips with discounted gift cards. Check your bank, union, credit card or even health insurance provider as they may offer this perk. Supermarkets also discount gift cards regularly, including those from Apple.
A pre-owned device is also an alternative. Make sure you buy a reputable brand from a trustworthy seller that provides a warranty.
3. Upgrade less frequently
If your phone is still working, keep it.
Unfortunately, mobile phones these days rarely get major life-changing upgrades and often are not worth the cost. Prolonging your upgrade cycle is just practical.
Try to get a new device every 3 years or more, rather than yearly. This way, you will feel a more significant difference in performance and get your money’s worth.
Another way to see if you are getting the most value for your money is to look at the cost per day of owning a phone. Again, the previous year’s model is often still great to use.
I applied these two when I bought my iPhone 6s in 2016 which was released in the prior year. At the time, iPhone 7 did not get a significant upgrade. I was not convinced that I should pay more for it.
I got a 128 GB model for $1079 and used it for more than 5 years. Here is a straightforward cost-per-day computation.
- 5 years x 365 days a year = 1825 days of use
- $1079 / 1825 days of use = $0.59 per day
Yes, it cost me 59 cents a day to own a phone for 5 years. If I kept it only for 2 years, it would have been $1.47 (more than twice as much!)
Clearly, a 5-year upgrade cycle is too long. So as previously mentioned, 3 years is likely more doable for most people.
4. Find a discount
Using discounts is another good way to reduce your mobile phone bill. You may not be aware but there are so many of them around.
If you are a student, a member of a certain profession, owns a credit card, work for a company, or are part of a club then there could be something for you.
If you are unsure what discounts are out there, go to your provider’s website or call them to find out.
Take advantage of any regular sale periods as well. Black Friday, Cyber Monday and Boxing Day Sales can be the best times to buy.
5. Bundle your services
Many phone carriers offer discounts for their customers who combine their plans under one account. However, this arrangement can be a double-edged sword.
It is good because you can save money and typically allows data sharing. On the other hand, users may find it hard to change phone providers as leaving can affect the discounts for everyone in the group.
Generally, it is a good option for families as the discounts can be massive. One example is Vodafone which provides up to 20% off for 5 bundled services. A family of 5, on a $40 plan each, would end up paying $160 monthly instead of $200. This would save them $480 per year!
6. Find yourself a better plan
Shop around for a plan that suits your lifestyle needs.
Your billing statement outlining your usage at the end of the month can help you sort this out. Go through your statement and evaluate how much data and call minutes you regularly use.
It may be time to change your plan if you find that you are paying for some data or allowances that you don’t need.
Perhaps, you may want to change to a different carrier altogether. Note that plan cancellation typically attracts fees. So if you are still in a contract, you can opt to downgrade instead. Most of the time, carriers will likely waive any early termination fees.
Be mindful that changing your plan equates to signing up for a new contract. For example, you decided to downgrade halfway through your 12-month contract. This change is technically a new plan and so the 12-month period resets. Your mobile phone carrier should inform you if this applies to you.
As an alternative, you can wait until your current plan ends and then downgrade. You are in a much better position if you are on a month-to-month, no contract, or prepaid service as you can change anytime.
7. Know and manage your data use
Extra data use can be an unnecessary and avoidable expense. By knowing how much you are using, you are less likely to exceed your data allowance and avoid additional fees.
Most smartphones have a data counter and allow you to set data limit notifications. There are also apps (both from the Google Play Store and Apple App Store) that exactly do this. Your phone provider may also automatically send you data warning alerts or you may use your billing statement at the end of the month to work out the numbers.
Ensure you are connected to the Wi-Fi network when you are at home, at school, or at work. Most public spaces also now offer free Wi-Fi but confirm first it is a secured network before connecting. To be safe, do not do any financial transactions, key in any passwords or other identifying information as public Wi-Fi systems can be intercepted and trigger anti-virus and antimalware.
You can also minimise your data use by cancelling any push notifications, turning off background data app refresh, and not downloading any content when using mobile internet.
8. Negotiate for a better deal
If your contract is just about to finish, negotiate for a better deal with your current provider.
Do your research, see what competitors are offering and then ask your current provider to match it. Sure, they may not be able to beat the deal, but they may give you a more palatable monthly cost or increase your plan privileges.
When haggling, mention any times when you encountered problems with them, perhaps in the form of bad customer service or poor reception.
The worst thing that can happen is that your current provider says no. In this case, mention your intention to leave. Normally, they will transfer you to a specialised team. As this team either deals with complaints or customer satisfaction, they may have more capacity to provide higher discounts.
Some people may be sceptical, but I’ve done this myself multiple times!
One family member needed an enormous amount of phone data which will cost her at least $65 a month with Vodafone. I knew that Felix Mobile, an MVNO (see next point below, if you are not sure what this is) which uses the Vodafone network offers unlimited data for $35 a month!
I brought this up during my chat with a Vodafone representative and told him that I am about to remove the family’s other services from them if they can’t provide an alternative deal. Voila, I was able to negotiate a $35 per month plan which has 320 GB of monthly data allowance. Yes, it is not unlimited but is sufficient.
9. Switch phone provider
If point 8 didn’t work for you, then it may be time to move on. This may be more useful if you are not on a long-term contract or yours is about to end.
You should also look outside the more well-known, main telecommunications companies who usually charge more.
There are usually smaller phone providers called mobile virtual network operators (MVNOs) worth considering. They are leasing and hence, are piggybacking from major carriers. Here are the examples in Australia:
- Felix, Lebara, Kogan (Vodafone)
- Coles, Catch and Amaysim (Optus)
- Boost, Belong, Woolworths mobile, and Aldi mobile (Telstra)
MVNOs usually share towers with the big players. However, before you transfer your business with them, check their coverage areas especially if you live in rural locations. MVNOs may also change their partnership arrangements with major networks from time to time.
Supermarket phone providers (Woolworths and Coles) give their users a discount for their groceries or additional points earned on their loyalty reward programs. This can allow you to save on your groceries as well.
What is even better is that the smaller networks frequently run promotions. You can check these individually on their websites but Shopback, Cashrewards and Honey would have coupons for you at any time of the year. Bargain hunt sites like Ozbargain can be a source of good deals too.
10. Try prepaid, month-to-month or sim-only plan
Prepaid, on-demand or month-to-month services may suit those who do not use their phone regularly.
Some prepaid sims can be recharged for as low as $20, available for 365 days.
People can call and message you on your number as normal. However, the cost of a single text or call is usually higher than if you are on a regular monthly prepaid service. You can always use online messaging apps like iMessage, Facebook Messenger, Telegram or Whatsapp when connected to Wi-Fi as an alternative.
Like the assurance of not running out of credits when you forget to recharge? A sim-only plan will do the trick. You can continue using the service every month. It will also allow you to activate, change and cancel your plan every 30 days.
When you avail of a prepaid service, just remember to cancel auto-recharge! Unless of course, you want or need it to be active.
11. Refer your friends
Have you ever heard of free phone credits? Some carriers have a referral program that lets you earn some credits.
My favourites are Belong and Felix Mobile. Belong gives you $20 off upon signing up using the promo code IFRZ14E71. Once your service is active, you will have your own referral code. Share this code with your family and friends so you can both get $20 off.
If you’d rather try Felix Mobile’s unlimited internet with their plan, you can get 1 month free with a referral. Similarly, when your service with them is active, you will get a code to share so that you and your mates can both get a month’s worth of use.
12. Analyse your bill
It is always a good idea to check your billing statements regularly.
Look for extra fees and add-ons you may or may not have signed up for. Although most telecommunications companies automate statements, there can still be mistakes.
You have the right to know what you are paying for. Clarify with your provider any discrepancies, dispute the charges, and cancel any add-ons as you see fit.
13. Turn paperless
Some telecommunication companies will charge you a fee for printing your statement and posting it. The intention is to decrease our use of paper, an environmentally friendly move.
Subscribe to electronic statements to avoid this fee. Yes, it is not a lot of savings but it adds up. If you get billed $2 for a monthly print-out, then that is an extra $24 you could have spent on fuel or food.
14. Claim from tax or work
Most of us use our phones at work. You may be mailing your boss some work documents, using your mobile phone maps to meet a client or calling your customer to confirm product delivery.
Depending on the tax laws in your country, you may be able to reduce your phone bill by claiming a proportion of the costs on your tax return.
Alternatively, your company may cover a percentage of your phone costs.
Not sure if this is possible? There is no harm in asking your employer for what they can offer.
Final thoughts
There are many possible ways to reduce your phone bill in half or more. Out of the 14 suggestions listed above, I am sure you can try some of them.
I used to be someone who spent $50 a month for a 12-month plan I never fully used. Every month, I would end up with excess data. It was not until I returned to university and could no longer afford to pay for it that I started to look for more reasonable options.
I discovered that I could save so much more and get a better bang for my buck if I look beyond the major networks. Since then, I mainly use MVNOs and shop when their starter sims are on special.
Overall, an outright phone with a sim-only or prepaid plan is the best and cheapest arrangement, in my opinion.
How much does your phone bill cost per month?
Do you have other tips to save money on your phone bill?
Feel free to comment on any tips and tricks you may have!
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