If you ask someone for tips on saving money, one of the frequent pieces of advice is to minimize the amount of fixed expenses. For personal budgeting, you should always divide your consuming expenses into two : Fixed Expenses and Variable Expenses. Our starting point of changing your financial habits can be identifying the size of your fixed expenses and reducing the cost as much as possible. In most cases, one of the biggest fixed expenses is their cell phone bill. As we are living in a data-connected world, many people pay high bills for unlimited calls and data connection. Today, let’s start with learning tips and tricks to use your cell phone in a more cost-effective way.
1. Same network, lower price with MVNOs
There are several criteria to distinguish all cell phone plans. We can separate them by the data amount, network coverage, additional features and so on, and the type of the mobile service operators can be one of criterias. Normally, you divide service providers into two : mobile network operators (MNOs) and mobile virtual network operators (MVNOs). These vocabularies may sound complicated, but it’s an easy concept to understand. MNOs are the big mobile carriers that we all already know, the big players. They have their own networks across the country. They’ve built their network infrastructure in the region, and make mobile plans directly. On the other hand, MVNOs are smaller companies who lease the network of MNOs at a wholesale price. MVNOs purchase MNO’s network and make their own plan for their customers. Compared to MNOs, MVNOs don’t invest in building their own network infrastructure. They just lend it. Rather, they focus on giving a lower price and unique service features to their customers. That’s why mobile plans from MVNOs are cheaper than MNOs. It’s important that the network quality is the same between these two, because they all use the same network infrastructure. Don’t just settle for the first plan or provider you come across. There are great contents comparing prices and features of different mobile plans. Find the plan that best fits your needs and budget.
2. Join a group plan
If you still like to stick with your original MNOs, an alternative to lower your mobile phone bill is by joining a group plan, such as a family plan. Most major carriers offer family plans where more than two family members can join. In these plans, the price is often lower compared to the normal plans. Additionally, there are added features provided, such as the ability to share your data amount with other members and deliver your data amount to a member who might need more data. If you have multiple members looking for a reasonable mobile plan, round up your friends and family who want to save money on their mobile phone bills.
3. Traveling? Avoid roaming.
In a case where you travel outside of your country, don’t use the automatic data roaming. Data roaming can lead to expensive charges, as your phone will use cellular data from a network provider outside of your home country. Not only is the starting price high, but also the price adds up really quickly. Instead, use a local SIM card or eSIM to access local data at a more affordable rate. Remember, automatic roaming is buying convenience at a higher price. If you want to use your local data in a convenient way, but at the same time, if you cannot spend lots of money, eSIM plans such as eSIM Europe’s can be a great option. Some major carriers are recently trying to provide their roaming service at a better price, and their efforts should be noted. However, it’s inevitable that the roaming price is higher than the local data mobile plans.
In conclusion, there are several ways to lower your mobile phone bill without compromising your service quality. You can switch to a lower-cost MVNO plan, turn off data roaming when traveling, and consider joining a family plan to take advantage of group discounts and additional features. Become a smart consumer and spend your money wisely!