When I was growing up, there was only one place you could reach someone… and that was through their home LAN line. I’m not sure what my parents paid for it but I’m positive it was less than the standard cell phone plan. And I’m also sure my parents’ LAN line phone didn’t cost close to as much as an iPhone.
But I know what you’re thinking. Hey, an iPhone does so much more than a LAN line phone. You are absolutely right! I have an iPhone and I love it. Actually, I don’t love it…I’m addicted to it but that’s beside the point.
Part of my FI journey is to eliminate or reduce spending items without feeling like I’m depriving myself or appear weird to others. I’m sure this is already happened in other areas of my life but my cell phone plan is a mystery to most.
When you lower your monthly spending, that savings is multiplied 300 times. This is based on multiplying your monthly savings by 12 (months in year) and then by 25.
A common rule of thumb to achieve FI is to have 25 years of annual expenses saved. By decreasing your monthly cell phone bill by $50/month, you take $15 000 off your FI number. If you have a partner, and both of you save on your cell phone bill, that amount doubles to $30 000 off your FI number.
Cell phone bills are a recurring monthly expense and from what I can tell, are here to stay in some form or another. In twenty years the phone will probably be embedded into our brains but we will still have to pay a monthly fee.
Canadians pay on average $75/month for their cell phone plans and that doesn’t include the cost of the phone.
Let’s look at it another way by plugging the $50 savings into a compound interest calculator.
It’s absolutely worth it to lower your monthly cell phone bill. The savings could be invested into and TFSA, RRSP, RESP, or used to pay down bad debt.
Common Canadian Cell Phone Plans
Most of us have had multiple cell phone plans and contracts over the course of our lives. Some of the options when you get a new plan are bring your own device (BYOD), finance a new phone, unlimited talk and text, unlimited data, 2 year plan, 3G, 4G, 5G. So many choices! If you don’t know what you want and what’s important to you, the cell phone provider will decide for you.
Canada has some of the highest cell phone plans in the world. The large cell phone field is controlled by Rogers, Telus, and Bell. Their base prices are shown below. If you want to check their prices for yourself, click their logo.
| Company | Plan | Price |
|---|---|---|
 | Unlimited 5G | $75/month |
 | Unlimited 5G | $75/month |
 | Unlimited 5G | $75/month |
 | 1GB at 3G | $25/month |
How can you easily save $50/month on your cell phone plan?
One of Canada’s best low cost cell phone providers is Public Mobile. It runs on the Telus network, one of Canada’s largest coverage networks. I’ve been using Public Mobile for 3 years and I’ll never go back to a big provider.
I’m on the $25/month plan which gives me unlimited call and text and 1GB of data. To some, that may feel like a crazy low number but it allows our family to save an additional $100/month without feeling like we are making a sacrifice. How many hours do you have to work to make $100? And remember, these are after tax dollars we are saving.
Do you really need unlimited data?
Some people may need unlimited data every month. If you are one of those people, then your employer should be covering that cost. Having phone data doesn’t enhance my life in any way.
Besides, there aren’t a lot of places that I need data. My phone automatically connects to my Vmedia home Wifi, work Wifi, and places that I’ve previously connected to. When I’m out and about in the world, I download podcasts and music so I don’t need to use data.
What types of plans does Public Mobile have?
3G Plans
4G Plans
They don’t have any physical stores so everything has to be done online or over the phone. There are no contracts so you can upgrade or downgrade your plan whenever you want.
What if I have an emergency and run out of data?
Public Mobile sends you updates on your data usage at 75%, 95%, and 100%. After you use all your data, you won’t be able to use anymore until you either top up your account or your next billing period begins.
Even if you run out of data on a Public Mobile plan, you still have unlimited talk and text. So if your car breaks down on the side of a highway, you can still call or text a friend.
How do I switch to Public Mobile?
Click on the Public Mobile button below to go to their home page.
Receive a one-time $10 credit on your Public Mobile bill by using code 9X2W2Y.
Conclusion
There is an enormous amount of options when it comes to cell phone plans. Providers will always sell you the most expensive plan they can. Decide for yourself if you actually need that much data and if you could live with less. It doesn’t hurt to try because you can always go back to your more expensive plan.