rssfacebook pagetwitter pagepinterestgoogle plus page

The Cheap Cell Phone Plan

By on Mar 14, 2013 in Saving Money | 15 comments

Cheap Cell Phone Plan

Do you have a cheap cell phone plan?

Are you looking for an inexpensive cell phone plan? Do you feel like you pay too much for your current cell provider? Well, if this is you, know that you are not alone. My wife and I have had T-mobile for years and paid about $125 per month for two cell phones. We had one with an unlimited data package of up to 2GB of high-speed data and the other just had unlimited text messaging but no data. That was the best deal I could find at the time, however, I have recently found an even cheaper plan.

If you have T-Mobile as your cell phone carrier, then you might have heard that they have two different types of plans: Classic and Value plans. We had the classic plan for years and never even knew the other existed. I have a friend that recently switched over to the Value option and when he told me how much he saved a month, I just had to look into it for our phones. I called the customer service department and asked them if they could tell me how much less our payment would be per month if we switched. The representative told me that we would save more than $40 per month and that we would have the same features!

Comparison of the T-Mobile Classic versus Value plans:


TMobile Value VS Classic Plan

What is the catch?

There are two things to be aware of:

1. The main difference between the Classic and the Value plan is that the Classic gives you a discount on a phone when you upgrade. Perhaps you have bought a $400 phone for $100 when they told you that you were able to upgrade, this would be why. However, I did the math and the discount didn’t make sense in our case. If we save $40 per month by changing over to the Value plan then that is a savings of $480 per year! I think I can afford to buy whatever phone I want for that price.

2. There is potentially a fee to switch if you are an existing T-Mobile customer. The representative that helped me over the phone said that it would be $150 to switch. I told him that it seemed high and asked him if there was anything he could do to reduce the cost. He then said that he could do it for $75 because we were a long-time T-mobile customer. I processed that for a second and said let’s do it. The reason why I was able to make the decision so quickly was that we would recover the cost in two months of changing our plan (2 x $40= $80).

What are we going to do with the extra savings?

Are next big goal is to pay off our home in the next 5 years. So any extra cash that we receive, we are going to use that to pay off our mortgage early.

What would you do with an extra $480 per year? Looking for more ways to save money? Check out 10 Ways to Trim Your Budget.


  1. Great breakdown, very clear. Thanks for this. Looking forward to more along similar lines!


    March 14, 2013

    • Thanks Tony! I am always glad to share ways to save money. Let me know if you find a better deal.


      March 14, 2013

  2. I currently have a contract going with Verizon, but I’m going to try out a pre-paid plan along side my current one. I want to compare the coverage, because if I can get a “dumb phone” for $20-$30 a month that actually works well, then I can justify ditching the high-priced smart phone plan.

    Johnny Moneyseed

    March 14, 2013

    • If you don’t care about the data plan, then the prepaid plan is probably the way to go. Let me know how that works out for you if you end up going that route.


      March 14, 2013

  3. Wow, that’s an awesome switch! I wonder why the incentives are so strange!?


    March 14, 2013

  4. Great comparison. What would I do with $480? I’d go to Starbucks and blow it on coffee! Kidding….that would look great in an IRA, wouldn’t it?


    March 14, 2013

    • Yeah, that would look pretty good in an IRA. But if you want to go to Starbucks a couple extra times a month and invest the rest, I think that is a good plan as well :)


      March 14, 2013

  5. Interesting. I think T-Mobile is trying to get out of contracts for good and lose the phone subsidies. They see the explosion of prepaid and want to jump on board.

    Grayson @ Debt Roundup

    March 14, 2013

  6. Good comparison! We’re with Verizon and hate the contract but generally have the need for a data plan as well as coverage for some of the places we travel.

    John S @ Frugal Rules

    March 15, 2013

  7. While I do not have T mobile, your excellent post has me thinking that my company may have levels of the plans that may suit us more now that we are empty nesters. Thanks for the heads up.

    • Let me know if you come across a similar plan with your carrier. I would love to write a post about it if you do.


      March 18, 2013

  8. Theres a chance you could save more. i work at tmobile and we recently launched new plans that are even cheaper.


    April 1, 2013

    • Thanks for the heads up Emily, I will have to check out the new plans!


      April 1, 2013

  9. Some prepaid is hard as in straight talk it difficult to talk to them since they are oversees and I just cant get the phone to work but they charged my account 6 months of fees and having troubles of getting the money back

    Linda Rhodes

    April 2, 2013

  10. I currently have a plan with Verizon. I turned on my phone when I got back from my world trip and seen the charges get slightly higher every month. I need to call them and make a change to my plan.

    The Phroogal Jason

    May 17, 2013

Post a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>