Save Money by Going Prepaid With Your Mobile Plan

They say 2012 will be a tough year economically, in Australia it has certainly started this way. Whilst we may not have experienced mass redundancies we are seeing many large businesses lay off staff.

When I see this the first thing I think of is don't commit yourself to anything that will tie you in for too long particularly if it is a luxury expense. Your mobile phone is exactly that, a luxury. Whilst you might want to upgrade to the latest iPhone, staying with the iPhone 4 might be to your advantage if the only way you can afford the new iPhone 4S is via a 24 month contract.

If you desperately want it though, then consider buying it outright by online markets like eBay. There are hundreds of the latest iPhones being sold at much lower than retail. However remember that you need to buy this phone upfront, with an upfront payment.

Entering into a 24 month contract for an iPhone 4S can cost our more than $60 per month for a 24 month period. That works out to over $1400 over the same period. Wouldn't you rather want to keep this money in the bank just in case an emergency occurs?

Going prepaid with your mobile plan can save you heaps particularly if you invest a little time better understanding how you use your mobile phone. A contract plan means you need to pay a fixed amount every month, no matter how little you use your mobile phone. With prepaid, you can control how much you spend by only recharging when your credit actually runs out. Better still, you can also elect a plan with a credit expiry period which is longer than 30 days.

Using such a plan means your $30 recharge voucher can last you 60 or even 90 days. This is only the start of the savings. Prepaid also gives you the opportunity to save on recharge vouchers by finding special offers.

There are plenty of places to buy your next prepaid mobile recharge from including supermarkets, petrol stations, post offices, and online retailers. What many of these outlets offer are discounts on the vouchers. It could be 10% or higher. So instead of spending $30 on your next recharge you actually buy it for $27 and still get the same amount of call credit.

Prepaid is a great way to stay in control of how much you spend on your mobile phone each month.

Whilst we may promote prepaid mobile plans as a way of saving money, in fact the biggest advantage that it gives you is a way of controlling your spending. You can then decide how much you wish to spend. You may wish to spend more or less than a contracted mobile phone plan but you make that decision each time you recharge or don't.

This control means that you can actually spend nothing for several months and still receive calls on your mobile phone. By not recharging after your credit has expired you save money. Bare in mind that most plans will cancel your prepaid mobile account should your sim not receive a recharge for 6 month or more.

Are you thinking of spending less this year than last year?

  • Yes
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