How I Saved $960 Per Year On My Cell Phone Bill

How I cut my cell phone bill in half and saved $960 per year

One question that I get often is “How do I save money on my cell phone bill?“.  I can understand the popularity of this question because it seems cell phone bills are getting higher and higher these days.  As I stated earlier, my wife and I left Verizon because they were charging us around $150 per month for two phones. This price was also after a 17% preferred employer discount.  I am a big fan of saving money on monthly expenses and don’t like to settle for the status quo.  If I can find a service that is cheaper and still provide me with what I need, then I am going to switch.  I am only loyal to companies that provide me with a great service and a great price. I need to have both, not just one or the other.  Since I always get this question, I decided I would describe how I saved money on my cell phone bill.

How I Save Money On My Cell Phone Bill

As stated in the title of this post, I was able to leave Verizon and save $960 per year on my cell phone bill.  I also get to enjoy a no-contract lifestyle.  Since Verizon gives you two year contracts when you want to buy service or a new phone in order to get a deal, I can say that I will save $1,920 in the next two years.  Nice!

OK, so I am saving money each month, but how did I do it.  Let me explain in a little more detail on how I am saving money on my cell phone bill.

The Phones

With many of the lower cost services, you have the option of bringing your own phone.  Since our phones were locked to Verizon, we had to look for different phones.  While this looks to be expensive, it doesn’t have to be.  While on Verizon, I decided to try out Straight Talk and had a good experience.  I was using their bring your own phone (BYOP) service with a different phone number and just forwarding my regular number to the new one. You can also just get a Google Voice number and use that as your main number and try different services without porting your number out. It makes it much easier.

When I first got the service, I picked up a used Samsung Galaxy Nexus phone on eBay.  It only cost me $190, which is much less than paying for a brand new phone.  The phone was not locked to any carrier and I could use it on any GSM carrier.  It was a good deal.

When my wife wanted to get off Verizon, we needed another phone.  So, I went back onto eBay and found a LG Nexus 4 which is a Google phone.  It was unlocked and was only used for a few months.  It was in great condition and cost me $250.  Now, you will say that I had to spend quite a bit for phones, but I will still save enough money to cover them.  The two phones are great and work well for us.  All we had to do after we got each phone was buy the appropriate SIM card and go through the number porting process.  Simple and easy!

I have since moved onto a Moto G 2nd generation, which is a great budget phone. You can get one new for under $200 on Amazon.

The Service

As stated earlier, I was trying out Straight Talk on my own just to see how it did.  My Straight Talk service was using the AT&T towers, which worked well in our area.  The service was great and cost me $45/month plus tax.  Last year, I was given the opportunity to try out Walmart Family Mobile.  It uses the T-Mobile towers.  Now, some will say that T-Mobile is not good, but it works very well in our area and that is what I care about.  Yes, there might be some travel concerns with the network, but since I don’t do a lot of traveling, we were good.

After trying out Walmart Family Mobile for a few months, I convinced my wife to switch from Verizon.  The reason why I chose Family Mobile was because they offer a $5 monthly discount for each additional line.  For the first line, you are charged $39.88.  The second line is charged $34.88.

Now, instead of being charged $150/month, we are only paying $74.76, plus tax.  That is much better than what we were paying before and I like those savings.

You’re probably wondering how I’m getting this math done in order to save $960 a year in mobile phone costs. Well, since I’m a fan of trying new things, I also tried two other services, both of which I would recommend. First, I tried Republic Wireless. This service is awesome. You can start on their system for only $10 per month with unlimited calls and data on WiFi. If you want cellular data, you can pay and get it for a few bucks more. Their average customer bill is only $14/month. Here is my full Republic Wireless review, so you can see what I’m talking about.

If I would have stayed with Republic, I would have saved over $1,000 a year with two phones on their plan. I didn’t stay with Republic because the WiFi coverage was bad for some places and so was Sprint. They have since fixed that issue, but I’ve already moved on. I still highly recommend it though.

Right now, my wife and I are both on Cricket. I really like this service and it’s only $70/month for both of us. It runs on AT&T and there are no taxes on top. I pay $70 this month, next month, and many months after. It’s that easy and the coverage is really good. I haven’t had any complaints since being on it for nearly a year.

Many Providers Offer Savings Opportunities

The word “prepaid” used to be such a dirty word.  If you had a prepaid phone plan, you were considered poor, but that is no longer the case.  Prepaid has molded into “no-contract” and it has become the plan for frugal people.  I am not saying cheap people, but people that are more worried about living a good life than having all of the bells and whistles.   With the explosion of people looking for lower cost alternatives, there have been an explosion of new providers.

The best part is that all of these low-cost providers are just using the big carrier networks.  So, you can get the same service for a much cheaper rate.  What is wrong with that?  As I wrote in my Simple Savings Sunday post, there are quite a few providers to choose from when it comes to cell phone service.  So, in an effort to show you that there are options out there, here are all of the cell phone providers that I currently know of.  If you know of more, please let me know and I will add them to this table.

ProviderNetwork Used
Boost MobileSprint
Cricket WirelessAT&T
Giv MobileAT&T
Net10 WirelessAT&T and T-Mobile
Page PlusVerizon
Red Pocket MobileAT&T
Republic WirelessWiFi and Sprint
Simple MobileMultiple
Straight TalkAT&T, T-Mobile, and Verizon
Virgin MobileSprint
Walmart Family MobileT-Mobile

As this table shows, there are a wide variety of lower cost options out there than the big carriers.  You don’t have to settle for the high costs of your cell phone bill.  You don’t have to settle for the status quo!  So, if you are looking to save money on your cell phone bill, then look to other providers. Shop around and find a different company that will provide a service to you that you are willing to pay for.  I recommend that you always test out the service before you jump in and with no-contrast providers, it makes the test drive easy!

To be completely fair here, I realized my math might have been a little off. I wasn’t truly saving $960 a year here. I did have to purchase the phones. It’s been 2 years since I started this adventure and have saved nearly $2,ooo by switching carriers. Since the overall phones costs were $615 for three of them, my realized savings is only around $1,400 for two years, so I’ve only save about $700 a year by switching. To me, that’s still awesome and if I didn’t change phones, it would have been even better. I still recommend going to a different carrier!

How I cut my cell phone bill in half and saved $960 per year

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About the Author Grayson Bell

I'm a business owner, blogger, father, and husband. I used credit cards too much and found myself in over $75,000 in debt ($50,000 in just credit cards). I paid it off, started this blog, and my financial life has changed. I now talk about fighting debt and growing wealth here. I run a WordPress support company, along with another blog, Eyes on the Dollar, which is another great personal finance blog.

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Leave a Comment:

RJ Smith says December 12

Love this article…makes so much sense to save as much as possible on our necessities so we can splurge a little on other things. Well done! ✔
I still think that WiFi should be free for all…aren’t we at THAT point in time yet?! lol

Jayson @ Monster Piggy Bank says December 13

Congrats Grayson. $780 is a huge amount of money. Glad that you are able to save that amount on cellphone bill. Choosing the best service and provider really pays off. All we have to do is take time to find it. Nice Gray.

EK says January 3

You can pay only what you use:

    Grayson Bell
    Grayson Bell says January 3

    I’m well aware of Ting. Unfortunately the Sprint network (what Ting uses) doesn’t do a good job where I live. That wouldn’t be helpful at all for me, but it can be for other people.

Larry Blankenship says June 20

I am wondering if you considered another of Walmart brand, Total wireless. Although it is not mentioned by name in the brochure the coverage area color matches Verizon network adds. They do not offer 4g LTE service. I was wondering if you cared to offer an opinion?

    Grayson Bell
    Grayson Bell says June 20

    Hey Larry, I haven’t personally tried Total Wireless, but it is a Verizon MVNO provider. They do support 4G LTE service now, so it could be a good option. The only thing you need to be aware of it Tracfone (who runs this service) doesn’t typically provide good customer service, especially when they are sold through Walmart. If the price is right, try it out and see if it works. 5GB of data for $35 is a good price.

Linda Moran says January 14

How can you get out of a cell phone contract? US CEllular

Ron Schroeder says June 26

I like using this website The owner of this site puts alot of work into reviewing MVNO providers. He started it as a way to just review different cell providers plus save money on his service & it had grown into something much more for him now!!

malcolm says October 15

$25.00 cut my on phone

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