Advertising
Advertising

How to Get a Smartphone Without Paying for an Expensive Data Plan

How to Get a Smartphone Without Paying for an Expensive Data Plan


    The phone carriers have figured out many ways to lock people into monthly plans that they don’t really need. The most basic example of this is the requirement on all the large carriers to pay at least $30 / month for a data plan for the right to use a smartphone on their network. This isn’t connected with their subsidy of your phone since they won’t even let you buy your own smartphone on eBay and then use it without a data plan. They justify this by saying people will need to use up large amounts of data anyways on their phone, so it is for the customers own good that they’re forced onto a data plan. Is there any reason to think otherwise?

    Advertising

    There are some possible reasons why someone might want a smartphone without a data plan. For one, a smartphone is a powerful mini-computer, and people might want to have access to one, even without a constant Internet connection. One can take notes and set reminders, take pictures, and read books, listen to music and play games on a smartphone. Since the phone can sync when in a WiFi area, one can see recent news articles, emails and driving directions even when outside of a wireless area. In fact, since WiFi is so widespread, people often have little need for the data plan since the WiFi access is almost always better. Is it really necessary to have a constant internet connection even during the short amount of time one is away from WiFi? I think there are many people who would be willing to slightly disconnect for short moments during a day, even if it means the phone carriers would be earning $30 less a month. But are there any ways to avoid these fees and still get a smartphone when the carriers are in control?

    Advertising

    There are a few possibilities. One option would be to forgo having only one pocket device and get a “dumb” phone for phone calls and a separate “mini-computing” device for everything else. This other device could be an iPod touch, a Galaxy player or a used smartphone. (See this post for an older possibility). If one doesn’t need the very latest technology, there many cheap used smartphones available on eBay. However, it becomes somewhat annoying to have to always juggle two devices. There’s fair amount of overlap between them, so it just seems very inefficient to have to carry two of them. If one is on a GSM plan such as AT&T and T-Mobile, one can buy an unlocked smartphone separate from the carrier and try to use it on the regular plan simply by putting in the SIM card from the dumb phone. However, this may go against the terms of the carrier. In addition, if AT&T can detect it is being used in a smartphone, it will automatically add a data plan to the person’s account. Currently one can avoid detection by making sure the smartphone wasn’t made for AT&T, but even that option might not last forever.

    Advertising

    The final possibility is to get a prepaid plan. If you don’t need that many voice minutes, this can be much cheaper than standard monthly plans. The big four carriers all offer some form of prepaid plans, but to get bigger savings you will need to look elsewhere. Some of the biggest prepaid providers are TracFone, MetroPCS and Cricket Wireless. The most important factor is that the provider has good cellular coverage in your area, so make sure to check their coverage map. The next thing to check will be the cost of the plan, of using limited data, and whether they charge more for smartphone usage. If you are on a GSM carrier, you will often be able to put the SIM card in any smartphone that you buy. If you are on a CMDA carrier (like Sprint and Verizon), you will need to buy a phone that is compatible with them and activate it with them. Depending on your needs, you may want to try some very cheap prepaid options. For example, PagePlus, which runs on the Verizon network (and is owned by them), offers a $12 /month plan. Another super-cheap option is PlatinumTel, which runs on the Sprint network.

    To save on your paid usage, you could use free or cheap services for calls and texts when in a WiFi area. For example, Google Voice provides free texting from within WiFi and there are many different VOIP providers you could try. By picking a good prepaid provider, you should be able to save a significant amount every month on cell phone bills.

    (Photo credit: Hands on Smartphone via Shutterstock)

    Advertising

    More by this author

    Your Guide to Learning Programming How to Get a Smartphone Without Paying for an Expensive Data Plan

    Trending in Money

    1 How to Set Financial Goals and Actually Meet Them 2 25 Killer Sites For Free Online Education 3 10 Recession-Proof Debt Consolidation Tips 4 The Definitive Guide to Get out of Debt Fast (and Forever) 5 25 Easy Tips on How to Save Money Fast

    Read Next

    Advertising
    Advertising
    Advertising

    Last Updated on September 2, 2020

    How to Set Financial Goals and Actually Meet Them

    How to Set Financial Goals and Actually Meet Them

    Personal finances can push anyone to the point of extreme anxiety and worry. Easier said than done, planning finances is not an egg meant for everyone’s basket. That’s why most of us are often living pay check to pay check. But did anyone tell you that it is actually not a tough task to meet your financial goals?

    In this article, we will explore ways to set financial goals and actually meet them with ease.

    4 Steps to Setting Financial Goals

    Though setting financial goals might seem to be a daunting task, if one has the will and clarity of thought, it is rather easy. Try using these steps to get you started.

    1. Be Clear About the Objectives

    Any goal without a clear objective is nothing more than a pipe dream, and this couldn’t be more true for financial matters.

    It is often said that savings is nothing but deferred consumption. Therefore, if you are saving today, then you should be crystal clear about what it’s for. It could be anything, including your child’s education, retirement, marriage, that dream vacation, fancy car, etc.

    Once the objective is clear, put a monetary value to that objective and the time frame. The important point at this step of goal setting is to list all the objectives that you foresee in the future and put a value to each.

    2. Keep Goals Realistic

    It’s good to be an optimistic person but being a Pollyanna is not desirable. Similarly, while it might be a good thing to keep your financial goals a bit aggressive, going beyond what you can realistically achieve will definitely hurt your chances of making meaningful progress.

    It’s important that you keep your goals realistic, as it will help you stay the course and keep you motivated throughout the journey.

    3. Account for Inflation

    Ronald Reagan once said: “Inflation is as violent as a mugger, as frightening as an armed robber and as deadly as a hitman.” This quote sums up what inflation could do your financial goals.

    Therefore, account for inflation[1] whenever you are putting a monetary value to a financial objective that is far into the future.

    For example, if one of your financial goal is your son’s college education, which is 15 years from now, then inflation would increase the monetary burden by more than 50% if inflation is a mere 3%. Always account for this to avoid falling short of your goals.

    Advertising

    4. Short Term Vs Long Term

    Just like every calorie is not the same, the approach to achieving every financial goal will not be the same. It’s important to bifurcate goals into short-term and long-term.

    As a rule of thumb, any financial goal that is due in next 3 years should be termed as a short-term goal. Any longer duration goals are to be classified as long-term goals. This bifurcation of goals into short-term vs long-term will help in choosing the right investment instrument to achieve them.

    By now, you should be ready with your list of financial goals. Now, it’s time to go all out and achieve them.

    How to Achieve Your Financial Goals

    Whenever we talk about chasing any financial goal, it is usually a two-step process:

    • Ensuring healthy savings
    • Making smart investments

    You will need to save enough and invest those savings wisely so that they grow over a period of time to help you achieve goals.

    Ensuring Healthy Savings

    Self-realization is the best form of realization, and unless you decide what your current financial position is, you aren’t heading anywhere.

    This is the focal point from where you start your journey of achieving financial goals.

    1. Track Expenses

    The first and the foremost thing to be done is to track your spending. Use any of the expense tracking mobile apps to record your expenses. Once you start doing it diligently, you will be surprised by how small expenses add up to a sizable amount.

    Also categorize those expenses into different buckets so that you know which bucket is eating most of your pay check. This record keeping will pave the way for cutting down on un-wanted expenses and pumping up your savings rate.

    If you’re not sure where to start when tracking expenses, this article may be able to help.

    2. Pay Yourself First

    Generally, savings come after all the expenses have been taken care of. This is a classic mistake when setting financial goals. We pay ourselves last!

    Advertising

    Ideally, this should be planned upside down. We should be paying ourselves first and then to the world, i.e. we should be taking out the planned saving amount first and manage all the expenses from the rest.

    The best way to actually implement this is to put the savings on automatic mode, i.e. money flowing automatically into different financial instruments (mutual funds, retirement accounts, etc) every month.

    Taking the automatic route will help release some control and compel us to manage what’s left, increasing the savings rate.

    3. Make a Plan and Vow to Stick With It

    Learning to create a budget is the best way to get around the uncertainty that financial plans always pose. Decide in advance how spending has to be organized

    Nowadays, several money management apps can help you do this automatically.

    At first, you may not be able to stick to your plans completely, but don’t let that become a reason why you stop budgeting entirely.

    Make use of technology solutions you like. Explore options and alternatives that let you make use of the available wallet options, and choose the one that suits you the most. In time, you will get accustomed to making use of these solutions.

    You will find that they make it simpler for you to follow your plan, which would have been difficult otherwise.

    4. Make Savings a Habit and Not a Goal

    In the book Nudge, authors Richard Thaler and Cass Sunstein advocate that, in order to achieve any goal, it should be broken down into habits since habits are more intuitive for people to adapt to.

    Make savings a habit rather than a goal. While it might seem to be counterintuitive to many, there are some deft ways of doing it. For example:

    • Always eat out (if at all) during weekdays rather than weekends. Weekends are more expensive.
    • If you are a travel buff, try to travel during off-season. You’ll spend significantly less.
    • If you go shopping, always look out for coupons and see where can you get the best deal.

    The key point is to imbibe the action that results in savings rather than on the savings itself, which is the outcome. Focusing on the outcome will bring out the feeling of sacrifice, which will be harder to sustain over a period of time.

    Advertising

    5. Talk About It

    Sticking to the saving schedule (to achieve financial goals) is not an easy journey. There will be many distractions from those who are not aligned with your mission.

    Therefore, in order to stay the course, surround yourself with people who are also on the same bandwagon. Daily discussions with them will keep you motivated to move forward.

    6. Maintain a Journal

    For some people, writing helps a great deal in making sure that they achieve what they plan.

    If you are one of them, maintain a proper journal, where you write down your goals and also jot down the extent to which you managed to meet them. This will help you in reviewing how far you have come and which goals you have met.

    When you have a written commitment on paper, you are going to feel more energized to follow the plan and stick to it. Moreover, it is going to be a lot easier for you to track your progress.

    Making Smart Investments

    Savings by themselves don’t take anyone too far. However, savings, when invested wisely, can do wonders.

    1. Consult a Financial Advisor

    Investment doesn’t come naturally to most of us, so it’s wise to consult a financial advisor.

    Talk to him/her about your financial goals and savings, and then seek advice for the best investment instruments to achieve your goals.

    2. Choose Your Investment Instrument Wisely

    Though your financial advisor will suggest the best investment instruments, it doesn’t hurt to know a bit about the common ones, like a savings account, Roth IRA, and others.

    Just like “no one is born a criminal,” no investment instrument is bad or good. It is the application of that instrument that makes all the difference[2].

    As a general rule, for all your short-term financial goals, choose an investment instrument that has debt nature, for example fixed deposits, debt mutual funds, etc. The reason for going for debt instruments is that chances of capital loss is less compared to equity instruments.

    Advertising

    3. Compounding Is the Eighth Wonder

    Einstein once remarked about compounding:

    “Compound interest is the eighth wonder of the world. He who understands it, earns it… He who doesn’t… Pays it.”

    Use compound interest when setting financial goals

      Make friends with this wonder kid. The sooner you become friends with it, the quicker you will reach closer to your financial goals.

      Start saving early so that time is on your side to help you bear the fruits of compounding.

      4. Measure, Measure, Measure

      All of us do good when it comes to earning more per month but fail miserably when it comes to measuring the investments and taking stock of how our investments are doing.

      If we don’t measure progress at the right times, we are shooting in the dark. We won’t know if our saving rate is appropriate or not, whether the financial advisor is doing a decent job, or whether we are moving closer to our target.

      Measure everything. If you can’t measure it all yourself, ask your financial advisor to do it for you. But do it!

      The Bottom Line

      Managing your extra money to achieve your short and long-term financial goals

      and live a debt-free life is doable for anyone who is willing to put in the time and effort. Use the tips above to get you started on your path to setting financial goals.

      More Tips on Financial Goals

      Featured photo credit: Micheile Henderson via unsplash.com

      Reference

      Read Next