Cell Phone Plan Optional?

Cell phones are everywhere. You cannot find anyone over the age of 12 that doesn't have one constantly on their person day and night. Most people don't actually use their phone as a phone. Cell phones are just an overloaded computer in a nice slimmed down format. Calling a cell phone a phone is a bit of a misnomer and really diminishes the full potential of the device. Here is a small list of things they are capable of.

Cell Phone Features

Communication: Call, text, email, and video chat using apps like WhatsApp, Zoom, or native messaging apps.

Entertainment: Stream music, videos, podcasts, or play games via services like Spotify, Netflix, or mobile gaming apps.

Navigation: Use GPS apps like Google Maps or Waze for directions and real-time traffic updates.

Food and Shopping: Order meals or groceries via apps like DoorDash, Uber Eats, or Amazon.

Banking and Finance: Transfer money, pay bills, and manage investments through banking apps or fintech platforms.

Health and Fitness: Track steps, monitor heart rate, or follow workouts using health apps or wearables synced to the phone.

Photography and Video: Take high-quality photos/videos, edit them, and share instantly on social media.

Work Productivity: Manage tasks, emails, and virtual meetings using tools like Microsoft Office, Slack, or Zoom.

Smart Home Control: Operate smart devices like lights, locks, or thermostats through apps like Google Home or Alexa.

Learning: Access online courses, language apps, or e-books from platforms like Duolingo, Kindle, or Udemy.

Phone usage is so broad that simply calling a phone a phone seems so underwhelmingly simplistic. Its like calling a car, a hand warmer. 

Bare Bones Phone Plan

When I was in college I found a phone plan for $5 a month which just had unlimited texting on freedom mobile (called Wind at the time). No outgoing calling, no data, no frills. That is $60 a year. For comparison most plans are $50 a month or $600 a year. That is a lots of money that could be invested year after year. But it was perfect for college life since I would only be texting since I had Wi-Fi at school and at home and if I needed directions I would download them first. Music was the same thing, downloaded on my phone, no need for data. This leads me to think that cell phone plans can be optional.

For most people, they live in a home with Wi-Fi then commute to work which has Wi-Fi. With the pandemic lots of people don't even leave their house as they work from home. Cell plans are not necessary for 90% of the people. Stay with me on this one. What do phone plans give you? Talk, text and data. You don't need to talk. You don't need text and you don't need data. Let me explain

Cell Phone Plan Features      

Talking - Who actually uses their phone as a phone. This is rare and mostly for calling your grandma on her landline. There are plenty of apps that can provide the same service, not to mention video calls. WhatsApp, Skype, Zoom, Discord, Facebook Messenger, Instagram, X etc. As long as you have Wi-Fi, calling on these apps is free and easy. 

A big loss would be talking on the phone while driving. This can be so enjoyable, breaking up the monotony and fighting off loneliness. Plus when life is busy it can be hard to find time to talk with loved ones.    

Text - Text is the most basic, rudimentary function. Just like talking there are many apps that provide the same function all working through Wi-Fi. Texting is nothing fancy and the fact that we pay for it seems crazy. 

While you are on the go you are mostly driving and losing the ability to text while driving is a net positive. You shouldn't be texting while driving. 

Data - You need data for the 5% of your day as you have Wi-Fi at home and at work. Spending all this extra money just for the time spent traveling in-between home and work seems like a big spend. Its not like your smart phone completely dies once you leave the house without data. You can listen or watch offline if you have media downloaded. Even google maps works without data if you load it up before you leave. Data tends to be the big sellers for phone plans from 1 gig to 50 gigs mobile carriers are constantly trying to upsell us on more data. Who needs 50 gigs? 

We are already addicted to our phones spending 4 hours a day on them. Having a forced break in your day where you are not connected to the internet can be healthy and freeing. There is nothing that important worth being connected constantly. 

If you are serious about budgeting and really want to cut back on recurring bills, considering cutting out your cellular plan just like people cut their cords. If you sat down and looked at how much you were actually using your phone plan I think you would be shocked at how much you leave on the table. Also just like my post on subscriptions (The Problem with Subscriptions) unlimited calling and texting means if you aren't calling and texting 24/7 then you are not fully utilizing what you are paying for. Plus think about the potential $600 a year saved it should be enough to incentive you to drop the plan.       

Cell Phone Required

Sure there are jobs that require a cell phone and most of those jobs provide you with a cell phone allowance. But I am shocked at the amount of people I have met who are paying $50, $60, or even $70 plus cell phone bills. Cell phones have been around for a long time now, you should have had time to shop around or talk to friends or family about how much they spend.

In Case of Emergency

If you truly are in a emergency all phones are legally required to make 911 calls regardless of whether they have an active plan. Moreover, in emergencies, you are often near people which as we discussed all have cell phones. Heck you could mostly likely ask as business to use their landline. You can pretend its the 90s ask for help. 

 

Still Want A Phone Plan

Just because you want a cell phone plan doesn't mean you need to shell out $50+ a month. I am shocked at the amount of people I have met who are paying $50, $60, or even $70 plus cell phone bills. Cell phones have been around for a long time now, you should have had time to shop around or talk to friends or family about how much they spend. There is not that much competitive advantage to paying $70 vs $35 or plan provider to plan provider. 

I eventually needed a phone that could actually make phone calls and receive data, I was able to find a plan with full coverage that was under $50 at Koodo. In fact there are many discount providers now. 

• Public Mobile (Telus Network)
• Koodo Mobile (Telus Network) 
• Chatr Mobile (Roger Network)
• Lucky Mobile (Bell Network)
• Freedom Mobile (Regional Provider)

I am currently with Koodo so I have favoritism to them and they have deals starting at $34 with 10 gigs of data. Now I am not a heavy data user but unless you are watching full length high definition movies each month, 10 gigs should be plenty. I have a difficult time going through 2 gigs in a month.  

Cell Phone Plans

Public Mobile has a deal for 10GB for $29 (4G speed)

Koodo is offering 60GB for $34 (4G speed)

 

Chatr is offering 1.5 GB for $25 (4G speed)

Lucky Mobile is offering 2GB for $25 (4G speed)

There is no reason to be paying over $50 a month for a cell phone plan

Even if you wanted a bit more data, all discount carriers have higher GB plans for less than $50. Reoccurring monthly bills can be a leech sucking on you for your entire life, but with some research you can switch to a much cheaper plan or cut your phone plan altogether.

Cell phones are amazing devices, but letting them drain your wallet is far from amazing. By assessing your actual needs, cutting out unnecessary features, and exploring affordable alternatives, you can keep the perks of modern technology without the hefty price tag. Take control of your phone plan today—your budget will thank you.

If you found this helpful and would like help budgeting or investing please email me at taylormckeecoaching@gmail.com