A Pre-Paid Phone Plan Could Save You Hundreds of Dollars a Year

As I mentioned last week I am currently in the process of trying to shrink down my cell phone bill. It’s presently about $100 a month and I would very much like to shrink that number down as much as possible. I mentioned this to a coworker of mine and he recommended a pre-payed plan from H2O wireless. Having never heard of this carrier before I was skeptical, but curious. 

He told me thath2o when his Canadian girlfriend is in town, she switches over to this plan. It uses the AT&T network, so reliability is not an issue and since it’s prepaid you don’t have to pay taxes on it. That started to tick the boxes for me. I visited their website and chatted with some of their reps.  After we spoke and I crunched those numbers, I have come to the conclusion that for a low to medium range user this plan is a great idea.

First off you can keep you number. This is great, because I wouldn’t even take a second look if you couldn’t. Next you can keep you phone, if you are coming from an AT&T plan the switch over is easy. If you are coming from another carrier they can talk you through the switch. They made it seem like it would be pretty easy, but I haven’t done it so I can’t say for certain. The plans range from $10-100, buying more doesn’t offer you a better price on anything, it only offers you a later expiration.

You pay 5 cents for a minute of talk and a text and 10 cents for a picture message and a mb of data. Let’s say you pay 80 a month for your current plan. You talk about 150 minutes a week, send 100 texts, 20 picture texts, and you use 100mb of data. 

If you loaded 100 dollars into this prepaid plan it would cost you just shy of 50 bucks a month and would last you about 2 months. On your “current” $80 plan you would spend $160. Over the course of a year you would save about $350. Pretty nice.

The trick would be to use a home or work line whenever you can to bring your minutes down and to connect your phone to wifi whenever possible to shrink your data usage. The savings are there if you have the desire and the discipline.

This could be a good way to control your children’s usage. At the beginning of the month you could put $50 into their account and tell them it will last a month, they need to make it last till then. Teach the kids some responsibility and save yourself a small fortune in overages.

Just another option for you in your quest to save some cash.   

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