This is a collaborative post.
Frugal and savvy spenders are the best at saving money on the monthly bills. One thing that seems to get missed, however, is the mobile phone contact. The most common forms of bill switching are gas and electric suppliers. Consider this. The average household dual fuel bill is more than the average annual household spend on mobile phone plans (source – https://www.ukpower.co.uk).
The average monthly spend on mobile phone plans is just above £45 per month in the UK. That’s £540 per year. Most households in the UK now have 2 or more phones.
That means the average household annual spend in the UK starts lifting to £1080 per year. UK consumers can save money if they research more about what they need. This starts with understanding how the plans are built. Mobile phones plans include three factors.
- The cost of the device
- Texts and minutes
- GB of data allowance
The most common way for a UK consumer to purchase a mobile phone includes the cost of the device within the monthly plan. As texts and minutes are now usually unlimited, it’s really the cost of the device and data that builds the monthly plan.
Purchasing a good deal doesn’t mean finding the best deal on a comparison site. Consumers must start with research on what works for them. This starts with their data requirements.
This shows the average data usage is the UK is 4.1GB of data. The average plan purchased in the UK is 16GB of data. This means most consumers are overspending.
The best way to find out how much data you need is to check your previous usage. You can do this on your device or on your monthly bill. Once you understand your usage you will know what data plan you need to match your monthly requirements.
The second part of this equation is knowing what you do with your device. If you an avid movie streaming or someone who listens to music without access to WI-FI all day then you need a good plan. If you only send a few emails and occasionally check out the family on Facebook then a smaller plan suits your needs. Check out the graphic below which explains how data is used.
(Source – www.fonehouse.co.uk)
It suddenly becomes quite clear that 10GB of data would handle a lot of usage. Especially as most consumers are connected to WI-FI via work or home most of the day.
The next cost factor is the cost of the device. You need to assess what you really need. Do you need the latest iPhone X or Galaxy Note 9, or will an older generation model like the iPhone 6 of Galaxy S7 suit you?
The device cost will be built into the data plan you need. This means a newer iPhone X could cost upwards of £1200 over the 24-month contract whereas an iPhone 6 can cost you as little as £432 with 2GB of data. That’s £18 per month.
If you are happy with your current device and don’t want a new phone, then you can save a lot of money moving forward. Switching to a sim only plan is a cheap way to keep your device but upscale your data allowance. You can pick up a Vodafone sim only deal for as little as £10 a month with 10GB of data. NEVER let your contract roll. You initially paid for the handset within the contract and will still be paying the same amount if you don’t cancel and switch.
Eloise says
Since I would object very strongly to paying a large amount of money for my mobile and can’t imagine a situation when I would need to access the Internet whilst out and about, I pay £6 a month for unlimited texts and 200 minutes (far more than I ever use) and haven’t bothered requesting a data allowance. If I need to read emails etc, I wait until I’m home. Although I could then connect via wi-fi I don’t bother. I’d rather read on a larger screen. I have a second-hand iPhone 5 and that’s a recent acquisition. I was happy with my 11 year old basic mobile but it broke.
shoestringjane@outlook.com says
I need my data as I blog in my lunch hour. Not masses though
Gillian says
I bought my Samsung Galaxy 2nd-hand on ebay, and my sim only costs me £5 per month, contract-free. If you are patient and willing to keep an eye out, it is not difficult to find a decent pre-owned or re-furbished phone as so many people now regularly trade-in & upgrade.
Julia says
My 23 and 17 y/o boys never use their phones, so theirs is less then £6 a month – still a lot for something that sits in the corner never being used though!
DD (19) and 3rd son (21) are both £10 month sim only and suits their high usage. The 24 y/o son’s was reduced from £38 to £13 after his contract ended and DH & I share 5Gb for £20.
While they are all studying we’re paying but as soon as they get their first job after uni ….!
shoestringjane@outlook.com says
Blimey, they are cheap! My lot never get off their phones
Chris says
I have a phone I bought outright for just over £100 I have had it a few years. I am with Giffgaff which is brilliant. No contract. I have a payment set up for £5 a month. I original started on £7.50 a month butchered monthly email suggested I move to £5 a month. I get an email monthly telling me how much text, calls and date I’ve used and if I am on the right payment. I’ve never known a phone company who would suggest you pay less. They are amazing.
shoestringjane@outlook.com says
I have heard they are good
Gillian says
hi there. my £5 a month is with EE, and no contract. it might be my age but i just don’t like the idea of being on a contract. I get a monthly text to remind me when my package time is running out and what is my current usage-allowance; after a number of monthly renewals, my allowance of texts, calls, data is increased. (I think it is after 3(?) months but can’t remember.)
I would recommend if you want PAYG (ie no contract).
With my 2nd hand phone I bought my SIM from ebay for £1. I can’t remember the exact reasoning behind that choice but I did get £5 credit with the card.