How to spend £100 a year less on your phone

Mobile phones have become as essential to us as toothbrush, and are probably one of your notable expenses each month. I had my first contract at 18, and probably have always since then. Now way back then, it was probably a Motorolla flippy thing with a crappy clip on phone cover, but with the line rental it set me back £25 a month. Fast forward 10 years (give or take a few..) and you can now pay in excess of £60 a month for the latest phones. The joke of it all is the data allowances don’t even compare to what you used to get.

When I took out my last phone contract, at £45 a month for an iPhone 4s- I was assured by the assistant that the 4 gig of data would be enough for my persistent music streaming- it wasn’t.

It wasn’t until last year when I noticed I could get out of the contract, I decided enough was enough, I just didn’t want to pay the equivalent of 2 weeks worth of food every month for my mobile.

Now the reality of the situation was I wanted to go sim free, but my iPhone was on the way out so temptation to upgrade was massive. I bit the bullet, and I purchased a new iPhone 6s outright, and downgraded to sim only deal of GiffGaff for £20 a month (unlimited everything).

Had I taken this out on contact at the time a) it would have cost me more b) I wouldn’t have got the data allowance I wanted/needed.

Option A) A contract is £55 a month for 24 months you’ll spend £1320 (£660 a year)

Option B) £625 on the phone £20 (or less if you’re a light data user) a month rolling sim only deal- that’s £552 a year.

Not only have I saved £200 for the same (or better) situation, I’m now in the position where I technically would have paid off a contract phone and I’m just paying line rental at £240 a year, so the savings are even greater. No pressure to upgrade to keep the line, I don’t need a new phone and I will keep it until it dies and do the same thing again.

Savings are short term, and long term. Paying for a phone outright might seem painful, but so is losing more money then you should. You can always use my debit saving technique to build up the balance for it (see post). So why are you still paying the phone shops your hard earned wage for nothing?


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