CELL PHONE BILL DISASTER — $286,600 Data plan??

Save $286,600+ over a lifetime using a discount cellular provider????

Thankfully discount cell phone plans are now almost as good as the ‘premium’ plans. A premium plan with the top 2 cellular and data providers currently costs $120 a month. A very good discount plan costs $45 a month…

Let’s talk about this outlandish expense that slurps money like a desert dog…

Not long ago, there was no such thing as a smartphone data plan. Your home had a single phone line that cost $30,
and all your roommates split the bill for $10 apiece.

Now, who could EVER suggest going without a cell phone?
Not me – I’ve run 30% of an entire business on my smartphone!

Yet, it’s necessary to analyze money flow to see the effects of an expense that has just pushed it’s way into our monthly bill cycle. Okay, let’s follow the trail:

PREMIUM CELL PLAN COST:
$120/month – $1440/year – $14,400/decade – $115,200 over 80 years

DISCOUNT CELL PLAN COST: ( I use the new Cricket, bought by AT&T and love it)
$45/month – $540/year –  $5,400/decade – $43,200 over 80 years

Choosing a Premium plan instead leads to spending and extra $75 a month!

Saving extra $75/month = $900/year = $9,000 per decade
invested at 6% Compound Interest over 30 years = $75,421
use that lump to pay you 6% yearly for following 30 years = $4,525/year = $135,757 / 30 years
during that time you would pay an extra $75,421 to keep buying that premium data plan…
The TOTAL Gain = $286,600

For someone who makes $35,000 a year, that loss would translate to 8.1 years of labor

I’ve actually met people who make minimum wage that pay $120 a month on cellular service:  at such low wages (they yield $13,920 per year) their lifetime loss translates to  20 YEARS OF FORCED FUTURE LABOR!!!
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There is one more argument that needs to be made – stay out of cell phone contracts! Providers use new phones to bait you into contracts. The deal works out well, but only for themselves!

Sure, they will ‘give’ you a new smartphone – by locking you into contract for two years.

The phone they give you has a price tag of $500 (which those companies bought for $285) and by giving the phone to you, they lock you into two years of $120/ month service: that’s almost $3,000.

There is really nothing more to say on this issue – It should be broadcast on television like a public service announcement, with the loud blaring alarm sound, just like tornado watches. They should air that alarm every hour, forever, until premium data plans are dissolved altogether!

Saving cash leads to making cash.

Very high re-occurring bills should make the hairs on the back of your neck stand up.

Alarm should be taken, and a new avenue sought – there are so many workarounds in so many areas where people bleed money, just like this example.  For Great Savers – it becomes really hard to get sabotaged – and one by one, the years of FORCED FUTURE LABOR melt away from the path of life you are walking on.

SAGA can save your friends! Feel free to like and share!

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