$7.08 A Month Phone Plan

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My monthly phone expense is $7.08. Here is how I managed to get my monthly phone costs so low.

First, I already had an old T-Mobile phone that I wasn’t using. The good thing about T-Mobile phones is you can just pop a new sim card in them and you have a working phone again. Since I already had the phone my next step was to buy a new sim card for it. I bought a new sim card with 1000 minutes for $85 off eBay. The retail price for 1000 minutes is usually $100. The drawback to buying off eBay is the card already has a phone number assigned to it which will probably not be in your local area code. This wasn’t a problem for me since most of the people I call are long distance anyway. You can change the area code of the phone number but you have to wait 90 days.

When you buy 1000 minutes from T-Mobile the minutes won’t expire for one year. The biggest benefit to buying the 1000 minutes though is you qualify for the Gold Reward status. This means in the future I could buy as little as 30 minutes and they wouldn’t expire for a year. If I only bought a $10 card the second year my monthly phone cost would only be $0.83 a month. Of course I probably will use more than 30 minutes in a year. I might be able to get by with 1030 minutes in two years though, that would make my average monthly cost $3.96 over two years. If you keep repeating this for a third,fourth,fifth year you can bring the cost even lower.

Right now my cell phone is my only phone. Last year I supplemented my cell phone by using Skype or Messenger phone when I planned on having extended phone conversations. I haven’t used Skype this year since it is no longer free. At $14.95 a year though it wouldn’t add much to total phone cost. I haven’t signed up for it yet though since the people I usually have longer conversations with also have Yahoo Messenger and I can call them for free.

This plan works well for me but probably wouldn’t work for those who use their phone more often. I don’t really like to talk on the phone much so it is easy for me to talk less than 83 minutes a month on my cell phone. I usually use much less than that. Even if you couldn’t use this as your primary phone it would make a cheap secondary phone.

Welcome to Tight Fisted Miser

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There are several reasons why I decided to start this blog. I already have a blog at bankbonuses.info. The focus of that blog though is fairly narrow. I decided to start a new blog to share my ideas and experiences with being frugal and saving money. It seems that most personal finance blogs are written by married men with stable work and family life. (There are exceptions of course.) I can’t always relate to the material they write. An article on how to save $100 a month by cutting out lattes doesn’t have much value to somone who lives on $900 a month. So I’ve decided to blog about my life at the lower end of the economic scale.

The reason my blog will focus on frugality is because that is what I know. I’ve always been frugal and living on my small income makes frugality a necessity. I can’t write an article on how to be rich because I am not rich. When it comes to being frugal though I believe I am qualified to write about the subject.

Although I’m calling the blog Tight Fisted Miser, I don’t consider myself a miser. The difference between being cheap or a miser and being frugal is something I’ll write about in a later blog post. This blog will contain several categories of posts. The main category will be frugality which will contain general frugal tips as well as my personal frugal experiences. Another category will be lazy money which will contain information about what I consider lazy ways to make money. The other categories will be random rants and random observations which will be things I feel the need to rant about or share my view on that don’t neccessarily fall into the personal finance category. These posts will be kept to a minimum.

Anyway that is all for now. Stop by often because I plan to keep this blog updated daily.