Did you know the average spend on a mobile phone is £40.60 per month? Sounds a lot doesn’t it! Consider this, is a mobile phone a luxury or is it now considered a part of the normal expected monthly bills? When taking out a loan or a mortgage, companies take your mobile phone bill into account and it’s no wonder when you consider the average cost per year.
Let’s compare an average annual mobile phone bill with standard fuel bills.
Annual Dual Fuel Bill
In comparison to the average annual phone bill per household.
The chart below shows the average number of phones per household. Most residences now have 2 or more mobile phones.
Based on the average spend of £45.60 x the number of phones per household. Most households now spend more on mobile phone plans per month than standard fuel bills.
It’s amazing that the average cost of mobile phone plans now cost more than keeping you warm and the oven on!
Most households know the importance of getting the best deal for their energy prices, house insurance and other standard monthly bills but most consumers neglect to really search for the best mobile phone deal.
Getting the best deal on a mobile phone plan doesn’t mean searching a comparison site and seeing which is the best online. It’s about finding the right contract that suits your needs and getting the best price for those requirements, not just because it’s a great deal with a gift or cashback! Follow our tips below to find the right mobile phone deal for you and your family.
1 – When to purchase a mobile phone
Like most markets there are ideal times of the year to purchase a mobile phone contract. August and September are when Apple, Samsung and other leading phone manufacturers release their new devices. At this time of year, the older generation handsets drop in price meaning a frugal saving shopper can take advantage of price drops.
2 – Know your needs
A mobile phone plan is made up of three features. The cost of the mobile phone, the number of minutes and data and how much data you have in your data allowance. This is known as total phone cost over the duration of the contract.
Firstly, check your recent bills or device to see what you use. If you only use 500 minutes and texts per month there is no point in getting an unlimited plan. However, most plans now come with unlimited minutes and texts so it’s the handset cost and data allowance that drives the monthly cost.
How much data you use is a huge cost factor, paying too much drives up the monthly cost but so can not having enough. Again, you can see this on your device or monthly bill. How a consumer uses their device effects what data they need. Below is a guide on what you can do with data allowances.
Source – www.fonehouse.co.uk
3 – What you do with your handset
If you only use your device for calls and minutes, then a small data plan is required. If you stream movies, skype and snapchat all day then a larger amount is required.
4 – Access to WI-FI
Most consumers now have access to WI-FI 90% of the day. Its when we’re on the move that data gets used. Consider when you connect your phone to the web. Most consumers spend the day at work (FREE WI-FI) and at home (PAID WI-FI). So, accessing APPs that use streaming related services are mostly done within access of WI-FI. The average data usage in the UK is shown below. The average plan purchased is 4x the average monthly usage at 16GB of data.
5 – New Generation or older generation
Technophiles usually want the latest generation phone and often pay above the odds to be able to upgrade every 12 months. However, older generation models still have great technology. Frugal spenders can pick up older generation devices like the iPhone 6 for as little as £18 per month with no upfront cost. Over the past two years new handset technology has started to slow down. Buying an older generation device doesn’t mean missing out on a great phone.
6 – Do you still like your handset?
Some consumers are very happy keeping their device and don’t want to upgrade to a new model. When you purchase a contract plan the device cost is built into the monthly bill. If you keep paying the same amount after your contract has finished, then you are paying for a device that’s already paid off. This is the perfect time to cancel your contract and switch to a sim only plan. This can more than half the cost of your monthly bill.
The main thing to avoid when purchasing a mobile phone plan is buying something you don’t need. Don’t be drawn into a good offer just because you get lots of data and the latest handset. Buy what’s right for your lifestyle and usage.
*This is a collaborative post.