Cell Phones – DON’T SIGN A CONTRACT!

Here is another example of a company making you think you are getting something for nothing.  There is no such thing.  Companies are in business to make money, that is the bottom line.  How do they make money?  By getting you to spend it and they do so in very slippery ways.

For example…

Sign up and get a free Android, IPhone, or whatever the latest and greatest phone is.  First and foremost, let me remind you NOTHING is free when it comes to cell phone companies and their marketing strategies.

So, most cellular companies require a two year contract (some require 3) in order to qualify for this “free” deal.  Those contracts do not give you the option of paying $50 a month for unlimited service.

Cell phone companies and any other company for that matter, are going to assume that you are too lazy to do simple math.  I’m not kidding…because if you signed a contract with a cellphone company because of the great deal you got on that Android or Iphone…you DID NOT do SIMPLE MATH.

I use Boost Mobile now, $50 a month unlimited talk, text and web.  I also have the push to talk feature, which is important to us as at the property that is sometimes all we can get.   We bought Blackberries on line for $150 for both.

For comparison, I actually went to T-mobile.  I compared the costs for an Android My Touch Q for a month to month vs. a 2 year contract.  READY?

If you want to do month to month, you can get an unlimited talk, text, and web for $50 a month, just like my plan with Boost.  There is a $35 activation fee and it is $349.00 for the phone.  So your up front cost is $434.00. After that you pay $50 a month on your due date for your service.  No charges if you cancel.  You will lose your number if your account is not paid after 45 days.  Total cost after two years is $1,584.00, including the phone and activation fee.

If you sign a two year contract, you can get their unlimited talk, text, and web plan for $94.99 a month.  There is a $35 activation fee and it is ONLY $49.99 for the phone.  So it is an up front cost of  $179.98.  Wow, what a deal!  You saved $254.02 by signing up for a two year contract.  Congratulations!  You have just been taken and raped without vasaline!  Hold on to your hat.  You also must allow them to do a credit check and they may require a deposit of up to 3 months service.  Additionally, by signing that 2 year contract, you have now agreed that if you cannot pay your bill and cancel your contract, you will pay a $200 early termination fee.  It gets even better.  Remember when I talked about simple math?  Your cost for two years with this option will be $2,364.75.  Which means that you paid $780.75 more for that two year plan, including the cost of the phone!  That is $32.53 a month.  Now that has to be the equivalent of at least a half a tank of gas, or if you shop and cook like me, at least 10 meals a month that you wasted!

In this economy, it pays to do your math.  If you want that damn Android or Iphone so bad, go on ebay or craigslist and buy one.  I will warn you, if an Iphone is “unlocked” it’s apple protection has been erased and you will probably end up with a virus.  My husband and I both found Blackberry’s on line and activated them with Boost.  We paid about $150 for both phones and we have everything we need.  If you do your homework and research, you can find a great phone at a good price and save a bunch of money.  But if you sign a contract, you are quite simply being duped by the carrier.

So maybe it means you can’t get your dream phone or the one that gets you on the same level as your coworker or a friend.  Maybe that makes you smarter than them because you saved over $700.  Why would you think it is cool to keep up with idiots who can’t do math?  If you want that blessed I-phone that bad, do the math…in two years, on a month to month plan, you will save enough money so that you can buy one outright and keep your month to month plan!  Patience grasshopper…good things come to those who wait.  So save your pennies, save your dollars and be smart about your cellphone service.  Who cares what is cool, if you can’t eat or pay your rent to keep it?

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