Saving money on the phones

Two years ago, I took out my first mobile phone contract.  It saved me money compared to using a pay-as-you-go set up, and I capped the bill so that there were not going to be any surprises.  I got a shiny new phone into the bargain.  Remember, things are all relative, and so I was pleased that I was saving some cash, and I was also released from remembering to "top-up" every so often.

Fast forward to this month, more specifically to yesterday, and it is time to think about the contract again, as it has come to the end of the specified 24 month period, and I am "free" to reconsider the arrangements.  The EFG also has a contract phone with a different carrier and we sorted hers out as well yesterday.

(image from itidelhi.com)

What a result for my purse!  Where I was spending £30.70 a month on the two phones, it is now going to cost me just £19.40 so I am annually £135.60 better off.

What did we do?

I told my carrier, Three, that I wasn't interested in a new phone, I just wanted the cheapest option possible based on my average usage.  After the chap got over himself trying to get me to have a new phone and really listened to what I was saying, and realised that I had actually found myself another option with a different carrier, he pulled the rabbit out of the hat at last and offered me 100 minutes of chatting time, with 5000 texts and 500MB of internet, for £6.90 a month.......what a difference!

The EFG's phone has been upgraded, and she has a slightly more expensive contract than the one she was on, so hers has gone up to £12.50.  However, I did point out that there were plenty of satisfactory options available at £10 a month, which was her current plan, so that was all I was prepared to spend.  The compromise is that she is paying the other £2.50/month for the life of the contract.  And we have agreed that the next contract will be down to her to sort out and pay for - this is it for her!  Her new phone will be arriving in the next couple of days and then I will need to let the house insurance company know the new details, and we'll be set.  She's keeping her number too, and the FH can have her old phone with a PAYG SIM card in it.  I should think that a £10 voucher will keep him going for at least 6 months, or even longer - he's not a great chatterer on the phone and is completely oblivious to texts.

So my savings in reality overall are a little bit more - actually £165.60 when the EFG's contribution is factored into the saving.  That means a little bit of leeway in my annual budget figures, which combined with my Skoda car tax coming in £5 cheaper than I had anticipated and the car insurance for the two car being quoted £80 less than my estimate, means that the annual budget is looking healthy......touch wood!