MoneyRates Monthly Resolution #5: Reexamine Your Mobile Phone Bill

Saving money is year-round process, and MoneyRates.com has been offering monthly resolutions throughout 2010. With each monthly reminder, you can shave a little more off your expenses or add a little more to your income--resulting in higher savings rates that you can sock way in a tax-advantaged retirement account, high-yield savings account, money market account, or CD.

This May, resolve to take a fresh look at your mobile phone bill. Here are four specific steps that could save you money on mobile phone services:

1. Compare your usage to your plan. Mobile plans in the US often come in packages that bundle a certain number of minutes. You need to right-size your plan. If you often leave huge chunks of minutes unused, you are probably overpaying for your monthly plan. On the other hand, if you often go over the plan's usage allotment, it might be cheaper to get a plan with more minutes. Set aside some time to review your last few monthly statements to see patterns of actual use.
2. Educate all cell phone users on your plan about what services cost money. It seems that every few months, there is a news story about some hapless teenager who racks up an astronomical phone bill by downloading games or texting obsessively without knowing what it costs on the family's plan to do so. Before you hand over a mobile phone to family members, make sure they know the parameters for using the phone--and that anything beyond those parameters will show up on the next monthly bill.
3. Comparison shop. Could you be doing better with another plan? Try a site like WireFly.com to find out. If you do find a better plan with another provider, try negotiating with your current provider before you switch. The current provider might match your new plan's conditions or offer additional useful perks that allow you to save money without having to go to the trouble of switching phone companies. Be sure to check up on any contract termination fees on your current plan--you may have to wait a little while before you can switch companies cost-effectively.
4. Consider a prepaid plan. If your usage needs are fairly limited, you might find that buying a cheap cell phone and signing up for a prepaid plan is the most frugal solution for your mobile phone needs.

In the last quarter century, mobile phones have gone from a high-end luxury to a ubiquitous, everyday item. Just make sure you aren't paying luxury prices for your everyday usage.

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