Buy an iPhone and Service for Less Than $400

Why do people spend thousands of dollars a year to operate a cell phone?  It’s not uncommon for people to spend over a hundred dollars a month for their phone, and most of the time they don’t even own it – they are leasing it.

Is it really that serious to have the latest and greatest iPhone or Android on the market, especially when it will be outdated in a few months?  It’s kind of ridiculous.

In this article, I will tell you how you can buy an iPhone and a year’s worth of service for less than $400.

But first, why get an iPhone?

Why an iPhone?

Obviously, you can do this with an Android if you prefer . . . I just prefer an iPhone; here’s why.

First, let me say that I have had both Android and iPhone, and iPhone is the better option, I think, for an interesting reason:  You can get a crappy Android . . . you can’t get a crappy iPhone.

The fact is, I had a crappy Android (before I started using iPhone). Granted, the Android I had was a cheap one, but still.  You’re better off buying a cheap iPhone; it will be a better phone.

Although, I guess it all depends on what better means to you, but here are two reasons why iPhone is better to me.

1. iPhone is more stable

iPhone, like BlackBerry, is completely proprietary – meaning Apple makes all the hardware and operating software.  That is to say that you cannot use Apple software on a non-Apple device (same goes for BlackBerry). That’s why they work so well and operate so smooth (not so much with Android, but that might just be my experience).

Android is more customizable. You can use different cell phone manufacturers with Android software. This gives you more flexibility, but also gives you less continuity across devices. Not all Android devices will operate the same way (or work as smooth) even though they use the same software; they are less stable.

2. iPhone takes better pictures

I realized a long time ago that your whatever-ever-megapixel-whatever means nothing.  You can have a 300 megapixel phone (if there were such a thing), and a 12 megapixel iPhone will take better pictures.

Everyone knows that the camera on iPhone takes ridiculously better pictures.  Don’t know why; they just do.  Perhaps it has to do with them being proprietary and being more stable.  Don’t know.

Don’t believe me?  Do your own experiment! You can go to your local cell phone store and start snapping pictures with different phones.  Compare those pics with the pics from an iPhone, and they’ll pale in comparison.

Stop leasing phones

Contracts used to be the big thing; now it’s leases (although leases are an even bigger rip off – you have to give your phone back in order to get a new one, unless it’s paid for, of course). But at the end of the day, they really accomplish the same thing as far as the carrier is concerned: they keep you from going elsewhere.

Everyone wants the most expensive cell phone (the newest thing out), but they usually don’t want to pay $1000 for it all at once. I don’t blame them. It’s easy to get caught up in the “lease thing” (to get the newest thing out) simply by paying an extra $40 a month for a couple of years. The salesmen know this, and most customers fall for it.

Add the lease amount to your already expensive unlimited whatever plan, and now you’re paying well over $100 a month to operate a cell phone. Why do that when you can get close to the same phone for a fraction of the price?

Related: Get Rich by Living Below Your Means

You can buy a great phone for about $200

Yes, I’m partial to iPhone, but you don’t have to get an iPhone. You can do the same thing with an Android if you want. You can find great phones for around $200 on Amazon.

For example, here is the phone that I currently have. You can get these phones just like new (renewed) for a fraction of the price. In fact, here is what Amazon says about their renewed phones:

  • Professionally inspected and tested to work and look like new, with minimal to no signs of wear, by an Amazon-qualified supplier. Supplier performs a full diagnostic test, replaces any defective parts, and thoroughly cleans the product. Box and accessories (no headphones included) may be generic. Batteries have at least 80% capacity relative to new.

  • Backed by the Amazon Renewed Guarantee. Eligible for replacement or refund within 90 days of your receipt if it does not work as expected via a single point of contact at Amazon.

Stop buying expensive cell service

People spend (on average) over $80 a month for cell service. And if you have a family plan, it gets even more ridiculous. Why are people paying so much for cell service? Is the service that much better? Probably not. After all, most share the same towers.

Not to mention, most people use their phones for anything but talking on it. That’s why cell phone providers don’t even care about the minutes you use; nowadays it’s all about the data – that’s what you pay for.

But do you really need unlimited data for $80 a month (or more)? The answer is no, not if you’re using WiFi like you should. The key is to use WiFi as often as you can.

I am always using WiFi. When I’m at work, when I’m at the store, when I’m at the coffee shop, when I’m home, at a friend’s house, I’m always using WiFi. The only time I’m not is when I’m driving, and I probably shouldn’t be using my phone when driving anyway (that’s pretty dangerous).

When you use WiFi every chance you get, you can get by just fine with a cheap data plan. That will allow you to pay for the data you actually use.

Personally, I can get by with 3 GB of data, no problem! If you’re able to do that, you might as well shop around for cheaper service.

You can buy a year’s worth of cell service for $180

One of the first articles I ever wrote was titled, “For the Cheapest Cell Phone Carrier, Switch to Mint Mobile!

In that article, I tell you why you should switch to Mint Mobile. That’s what I use, and I only pay $180 for a year’s worth of service.

When you buy your phone outright, you don’t need to worry about being a slave to a particular carrier; you can take your phone wherever you want.

When you aren’t suckered into leasing a phone with a particular carrier, say a more expensive carrier, you can take your “unlocked” phone to any carrier you want; you can take it to a cheaper carrier like Mint Mobile. And that’s what I did when I left Sprint.

I would highly recommend Mint Mobile; you can check out their plans here.

Here’s the plan I have:

my mint mobile plan

Bottom line

At the end of the day, it doesn’t matter what phone you buy.  If you prefer Android, then buy Android! Just buy it outright from Amazon or something.

It doesn’t matter how much data you need. If you can’t survive on a cheaper data plan like me, buy a plan that has more data! Just buy it from a cheaper provider like Mint Mobile.

If you still go over your data, buy more data!  If for some reason you need unlimited data (20 GB or more), maybe you should reevaluate your life – that’s a little excessive (or maybe figure out how to use WiFi more effectively).

At any rate, when you buy your phones outright, and buy cheaper service, you will save a ton of money – that’s what matters. You should be able to get it done for under $400 a year (phone and service). Why pay more?

The goal is to reduce your cost of living, so you can invest your money and build real wealth. Don’t tie up all your income in dumb stuff like expensive cell phones. Take control over your finances now.