Have you ever felt like you are paying way too much for your cell phone service? Well you probably are! I have decided to be smart with my money this year and actually track where my dollars are going. I never spend crazily, but by setting a budget for myself I began to realize how much I am actually spending on various items like my phone bill, car insurance, and food.
My Phone Bill
I am currently receiving my cell phone service through Verizon. I have always known that they are often the most costly option, but with my work discount of 19%, it seemed to be reasonable when I signed up with them back in 2009. Plus, I have never had an issue with their phone service, which is always nice when I travel around to the more remote areas of Michigan.
Recently though, as I created my budget, I realized that I was spending $85 a month on my phone service, which just seemed ludicrous when I calculated that to be a $1,000 expense every year! Sure, I had 450 anytime minutes, unlimited texting, and 2GB of data, but $85 a month just seemed a little bit too high. So, I started looking at other plans.
My nephew recently made me aware of how cheap Virgin Mobile can be. He doesn’t talk on the phone much, so he signed up with their cheapest plan that offers 300 minutes voice, unlimited texting, and unlimited data for $35 dollars a month – a full $50 less than I am paying with Verizon. I was about to jump on the bandwagon, but then discovered that they do not have night and weekend minutes or mobile to mobile minutes like Verizon, and there is no way I can talk for less than 300 minutes total for the entire month (my usual is 1,500 or so — give me a break, my girlfriend lives 2 hours away). But, even Virgin Mobile’s unlimited everything plan only costs $55 a month, so I contacted Verizon to see what they could do.
I’m Ready to Dump You Verizon!
I was seriously considering making the switch to Virgin Mobile, but that would mean that I would need to buy a new phone from their site that was “Virgin Mobile activated”, which would have meant an upfront payment of about $200. Instead of leaping over to their service and taking on that initial charge, I decided to contact Verizon Wireless to see if they could reduce my bill.
When they realized that I was ready to drop their service, they did everything to try to find additional discounts. Apparently, since I have been a customer of theirs since 2009, I was considered a loyal member and qualified for their loyalty plan. Instead of paying $85 a month for my package, I could now be upgraded to unlimited voice, unlimited texting, and 2GB of data for only $65 a month. This is a $20 per month savings which means $240 more dollars in my pocket every year! On top of this, because I renewed my contract, I was able to get the new HTC One for only $100 and trade in my old iPhone 4 for $100 also, making my net bill zero dollars!
That’s right! With one phone call, I was able to reduce my yearly bill by over $200 and I got myself a brand new Smartphone for free. Have you had Verizon for a while? Perhaps you could save some money with the loyalty plan as well!
My name is Derek, and I have my Bachelors Degree in Finance from Grand Valley State University. After graduation, I was not able to find a job that fully utilized my degree, but I still had a passion for Finance! So, I decided to focus my passion in the stock market. I studied Cash Flows, Balance Sheets, and Income Statements, put some money into the market and saw a good return on my investment. As satisfying as this was, I still felt that something was missing. I have a passion for Finance, but I also have a passion for people. If you have a willingness to learn, I will continue to teach.