The plan you need, a nationwide network, all without a contract.
// DO UNLMITED YOUR WAY
David Bakke is a contributor for Money Crashers Personal Finance, a resource that helps readers find ways to save money and make sound financial decisions.
In this economy, many Americans are looking for ways to save on anything they can, and one commonly overlooked area is cell phone usage. Trimming money from your cell phone bill on a monthly basis can represent significant savings when calculated over the course of a year. And depending upon your monthly usage, you may very well benefit from going to a prepaid cell phone plan.
How Prepaid Cell Phone Plans Work
In contrast to regular cell phones, prepaid cell phones do not require a contract and never surprise you with extra fees. You simply pay in advance for the minutes that you will use, and that's it. Some carriers offer alerts as to when you are running low, but with others you'll have to track this yourself. You can typically purchase minutes online or over the phone.
Over the past three months, I have averaged 300 minutes used per month. My current plan costs $60, so at that rate I am paying $0.20 per minute.
If I were to switch to a payLo prepaid plan, select one of their phones under $50, and purchase a block of 400 minutes for $20, I would cut the cost of what I spend on a cell phone by two-thirds. That translates into an annual savings of $480. I don't text and don't have mobile Internet on my phone though, so those are two other variables you'll have to factor in if they apply to you.
If you want to enjoy financial success, reduce costs any way that you can. Beyond saving on home energy, groceries, and other necessary expenditures, you can save a lot on your cell phone. Forgo owning a smartphone unless it will significantly benefit your job and income potential. And if you prefer to avoid a contract, you can go this route with a pay-as-you go option.
A prepaid cell phone can indeed save you a lot of money - depending on how much you use your phone. Examine your options carefully, and see if you too may benefit from enjoying a contract-free cell phone.