sparktography / Flickr

This is a post by BargainBabe.com writer Yazmin Cruz.

I haven’t always been a smartphone user. The price tag and monthly bill made me reluctant to switch over for many years. Now I can’t live without my iPhone. Below I share how to lower the cost of owning a smartphone.

Beware of small fees

In my post about shrinking your cell phone bill, I suggest you avoid the extras like ringtones and wallpaper. With a smartphone, you also want to avoid paying for in-app purchases or going crazy downloading music. To avoid accidentally making these purchases, go to the apps’ settings and turn-off purchases.

Minimize app purchases

Stick to free apps, or at least get money back from your purchase. Use Ebates when buying apps and music. I’ve also scored many free apps from Starbucks. Make sure to look for the business-like cards by the register to score free music and apps every Tuesday. Check out my post on how to purchase inexpensive iphone apps for more tips!

Reduce your data plan

I was grandfathered in to an unlimited plan, but recently, many wireless carries have switched to tiered plans. Avoid going over your minutes by checking your usage statistics. They’re under settings and you can reset them to track your usage over a month. You may be surprised to learn that you’re not using all of your data allowance. Once you’ve reduced your data plan work to stay with in the limit.

Use Wi-Fi

One way to reduce your data usage is to log in to a wireless connection. You can do this even when you’re out! Coffee shops, libraries, and even restaurants now offer wireless connections. Just make sure not to check bank accounts when you’re on a public internet connection.

Text and call using apps

Don’t eat up your minutes and incur costs when making calls or texting. There are apps that allow you to use your cell phone’s Wi-Fi to send free texts and make free calls. Many of these apps are also free! I like to use Skype.

UPDATE: I just received my May issue of ShopSmart and it includes apps for chatting on the go — for free! They include:

Facetime – It allows you to video-chatting for free, but you have to be on Wi-Fi.

Fring – Lets you IM, talk, and video-conference using an iPhone, Android, or iPad.

Tango – Offers voice and video calling between devices. This app works on iPhone, iPad, Android, and Windows.

Viber – You can call and text other Viber users. It’s free and works on iPhone and Android devices.

Whatsapp Messenger – It’s free in Blackberry, Androids for a year, and $.99 cents on iPhone.

Finally, if you’re taking the plunge and getting a smartphone, consider buying a refurbished phone. Many refurbished phones have the same warranty as new ones so you’ll reduce the cost of getting a new phone.

How do you save money when using your smartphone?

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craig1black / Flickr

This post is brought to you by Verizon FiOS TV.

This is a post by BargainBabe.com writer Yazmin Cruz.

Cell phones can come in handy, but can also be costly. Don’t fret. Like other utilities, cell phone bills can be shrunken down with a few tweaks. Below I share 11 tips to lower your cell phone bill.

Track your talk time – If you tend to go over your minutes, it’s time to set up alerts. You can check your minutes for free on most cell phones. You can also use OverMyMinutes.com, a free service that will send you an email or text message to let you know when you’re about to run out of minutes. All you have to do is sign up.

Avoid the extras – Stop purchasing ringtones and backgrounds. These are just a waste of money especially when your cell phone already comes with these. Paying a buck for these may sound cheap, but this expense can quickly add up.

Go prepaid – A prepaid cell phone is a good option for someone who occasionally uses a cell phone. Shop around to find the best deal.

Evaluate your plan – Billshrink.com is a free online analyzer that helps you reduce the cost of household bills. Input basic information about your cell phone plan and it will suggest a cheaper plan. I haven’t used this site, but know friends who have and have found cheaper cell phone plans.

Use the phone book – Try to avoid calling 411. Many carriers charge $1.25 or more. Instead, try alternatives like using the phone book or calling 1-800-FREE411. Make sure to double check your bill when it arrives, you don’t want to get charged for calling information.

Double check your invoice – Pay close attention to your monthly bill as these can be ridden with errors. Make sure you understand everything you are being charged for. I recently fought a $2 charge in our bill for data charges from a cell phone that does not have a data plan and can’t send or receive photos.

Avoid roaming charges - Double check your service plan and familiarize your self with your local area. Roaming charges can quickly add up! Many cell phones allow you to turn roaming off so you’re not able to make or receive calls when you’re out of your area.

Drop the insurance - Unless you have a brand new phone that cost you several hundred dollars, then drop your cell phone insurance. At $3-5 per month, it can cost you $36-$60 per year. When I first bought a cell phone, I paid for insurance only to find out later on that it didn’t cover the damages my phone had suffered. Instead of paying, I could have saved the money to replace the phone.

Avoid peak hours – One way I keep my cell phone bill down is by using my cell phone during the weekend and nights to catch up with friends and family. My peak hours are reserved for work calls. Depending on what you use your cell phone for, you can do the same.

Get your texting under control – If you send and receive a lot of texts, you may want to consider switching to an unlimited texting plan. You can also use free alternatives to text.

Ask for a discount – Many companies offer students and seniors discounts. Note that the plan has to be in your name to receive the discount. I tried getting a student discount a while back but couldn’t because my phone is  apart of a family plan.

Data plans – I have an unlimited data plan, but those are no longer around as many companies have dropped them. Make sure you absolutely need this type of plan before forking over your hard earned cash. If you need the plan for work, check to see if your company will pay for it. If that’s not a possibility, cut down on the video streaming, app downloading, and web surfing while on broadband.

How do you save money on your cell phone bill?

jmhita / Flickr

This is a post by BargainBabe.com writer Yazmin Cruz.

A friend of mine told me to scratch up my iPhone to make it less appealing to thieves. (It was almost stolen once). Apparently, people are craven enough to steal, but not unless an item is shiny and new.

My friend, who rides an expensive bicycle everywhere, said people tend to overlook it because he has “roughened it up.” I suggested this tactic to my dad, who owns an electrical bicycle to save money on gas. He said he wouldn’t damage his bicycle because of the money he spent.

I agree with my dad. I wouldn’t go as far as defacement to keep something from being stolen. Would you?

Think of all the money you’ve spent to buy it new. Plus, once damaged, will the item be as appealing to you? My friend said this was his way of protecting his investment. But I don’t see it as saving money. In the long run, I see it as losing money.

If I were to scratch my cell phone and later wanted to sell it, the phone would not be as valuable. Perhaps more importantly, damage is no guarantee against theft. I could damage my iPhone and still have it stolen.

What do you think – is my friend who damaged his bicycle protecting his investment? Would you create the illusion of having a beat up item to keep it from being stolen?

Got money on the brain?

Credit: neon_neon/Flickr

Financial psychologist – that’s what Brad Klontz is. I chatted with him recently about why kids should fail financially, how our money problems stem from unconscious beliefs, and the money disorder test that can save us.

What is a financial psychologist? I’m trained as a clinical psychologist and in the last 10 years I’ve developed an expertise in personal finance. I created a treatment program for money disorders.

What is the most common money disorder? This will come as no surprise, but it’s overspending. We have a negative savings rate, credit card debt, and we’re modeling all these behaviors for our children.

So we’re teaching our kids bad habits? Yes. They watch what we do and model it. When kids see parents head down to the store, swipe plastic, and bring home a TV, what do they learn? One thing that I encourage parents to do is to break down the skills of money management. Even if you can afford to buy that TV, put a jar in the living room, put money in it. Talk to your kids about saving for it. 80% of college students have credit cards now. On average they have about $3,000 in revolving debt. Half of college students have four or more credit cards. (My emphasis.) We require kids to take a drivers ed class before they get behind the wheel, but there is no class to get a credit card.

What are three money lessons kids need that they are not learning in school?

We have to teach them self control. We have to talk about money with our kids. We need to model savings. The best way to involve kids in modeling is to use allowance purposely. Most parents give their kids allowance and then complain that it’s gone right away. Kids are impulsive. They want to feel now. Have structure around allowance. You can start this with a four year old. Have them save a dollar, have them spend a dollar, have them give a dollar away.

What’s the biggest complaint you get from parents? My teenager ran up a $1,500 cell phone bill! Get them on a prepaid card. There is a certain number of minutes and then it’s gone. The first month inevitably the minutes are gone in a week. You say, “Wow, you really burned through your minutes. You get 1,000 more minutes next month. Maybe there are ways you can stretch them out.” You can’t bail them out because you’re teaching them that if they are in trouble someone else will swoop in. You have to let them feel some of that pain. Help them fail.

Why would a parent want their child to fail? Because that is a really strong learning experience. Let them fail when the stakes are small. When it’s not repossession of a car or something big like that. Help them see the consequences of not delaying gratification.

You’ve won awards for your work money and wealth issues. Can you make me rich? Oh yeah, sure. Absolutely. Just start saving when you’re five. It’s interesting because if we all had a financial education when we were 18, there’s no excuse for all of us not to have a million dollars when we retire. It’s actually very simple. Save for the future. Don’t spend more than you make.

So are we all just really stupid? I think that we have not been educated. I remember economics form high school, but there was no applied economics, balancing checkbooks and managing money. The other thing is when we are engaged in destructive financial behaviors, which is always the result of money scripts.

What is a money script? A money script is a belief about money, typically unconscious, that drives all our financial behaviors.

Sounds powerful. They have a powerful negative impact. They are typically taught from our parents and they can go through generations. For example, my grandfather watched his family lose all their money in the Great Depression. Watching this he learns you can’t trust financial institutions. My grandfather died at 92 never having put a penny in the bank. He kept all his money in a box in the attic.

And he passed it down. My mother had an intense fear around money and not having enough. She wouldn’t invest in the stock market.

What are the other money scripts? Another is money avoidance: the belief that centers around anti-rich statements. Rich people are greedy. People get rich by taking advantage of others. Money corrupts people. I do not deserve to have a lot of money if others have less than me. You’ve associated having money with being bad so you subconsciously repel money. Or if money comes into your life you spend it or sabotage it in some way. You might be comfortable at a certain socioeconomic level. So you get rid of the money somehow.

The second pattern is money worship, what my family had. Things would get better if I had more money. Money is power. Money will solve all my problems. You either become a hoarder where you save religiously, or you spend money as soon as you get it. I’m never going to have money anyway, so get what you can when you can get it.

The third one is money status. Your self worth equals your net worth. People are only as successful as the money they earn. If you are good, your financial needs are taken care of. If you really believe that money is going to give you all these things, you take unreasonable risks in your business ventures or become a workaholic. You’re likely to overspend because it has to be new. You want everyone to see you in that car because it raises your status.

So if we could just uncover our personal money script? There are some questions you can ask yourself. I created a money disorder test. The assessment code to take it is mindovermoney.

Post-interview: I took Dr. Klontz’s 4-minute test and was told I had two issues:

• Your response style suggests that you are at-risk of developing a problem with workaholism.

• Your response style suggests that you exhibit one or more symptoms of financial infidelity.

I can certainly relate to the money avoidance script. I save intensely, but then am distrustful of financial institutions so I may be losing money by not properly investing it. What did your test say? Do you think it’s true?

Charlie Brewer / Flickr

This is a post by BargainBabe.com writer Yazmin Cruz.

Earlier I wrote about three phone alternatives to a landline that can save you money and reader Lore suggested Gmail Voice. I am a Google fan and can’t believe I didn’t mention the company’s phone feature, which you can access through Gmail and Google Talk.

Google Talk is a free Windows and web-based application for instant messaging that also allows you to make calls to others with Google Talk only. Google Voice is a free Google Internet service that uses voice over internet protocol (VoIP) to enable users to make and receive calls for free. You don’t have to be at your computer and can call any number. In this post we’ll explore how using Google Voice can cut down your phone bill.

Google Voice is similar to Skype in that it enables you to make a call and video chat. To make calls you will need a Gmail or Talk account (signing up is free). To video chat, you will need to download Google’s video plug-in, have a working microphone and speakers.

To start, open Gmail or Talk and look in your chat list for “call phone.” When you click the button, a number pad pops up. Dial a number or enter the name of someone in your contact list to call them.

Google Voice lets you make calls to landlines and mobile phones in the U.S. and Canada for free. International calls start at $.02 per minute.

You will be able to receive calls if you have a Google Voice account. The account is free and all you have to do is pick out a phone number. The number will be display in others’ caller IDs when you make a call. You can set up the account to forward calls to another number and also set up a voicemail.

The sound quality for outgoing calls is better than I expected. It actually sounds better than making calls on my cell phone when I have little reception. The only drawbacks that I could find is that Google Voice is not able to place or receive emergency calls and if you didn’t reserve a number in your city when this featured rolled out, then you’re out of luck. I tried making a Google Voice account but there weren’t any Los Angeles  phone numbers available. To learn more about the cost of replacing your landline with other VOIP services, check out Bargain Babe’s take on the subject.

ilamont.com

Reader Ellen asked for advice on cell phone insurance.

Two phones ago I lost the capacity to (gasp) text message! When I went to the Verizon store they told me that there was nothing I could do except wait until my upgrade kicks in, buy a new phone ($$$) or wait it out. (Yes, I waited it out.)

They also mentioned that cell phone insurance may have taken care of the alleged damage. Cell phone insurance?

Yes for about $5.00 a month, you, too can “insure” your phone in the event it is damaged, lost, stolen, etc. One new phone later and I still declined, until I thought said phone was malfunctioning. This time I tried to give in and get the insurance but Verizon told me that I had to purchase the insurance within 30 days of my upgrade.

Yes, they were on to me. Phone breaks, get insurance, get phone fixed, drop insurance. During this process I also learned that cell phone insurance, like health or autho, also has a deductible!!!

Lucky for me my cell phone was not malfunctioning–operator error–but I definitely learned another lesson in all matters insurance. If you think you’ll break it, buy it.

Do you have cell phone insurance? I decided against buying the $70 per year iPhone insurance, but a generous friend shared his with me so my phone is insured.

By Mike Barclay of 10CentsWorth.com

A lot of you may be surprised to know that I’m not the most financially savvy person. What might floor you even more is that I’m still learning. Here’s what I’ve learned and where I need your help. Deal?

Priorities and Will Power

If you were faced with the choice to pay rent or your cell phone bill, which would you choose? The logical choice should be rent, right? For a while, I would actually choose my cell phone. I figured it was okay to accrue late fees so I could text my friends. Well no more!

I have a file on my computer that sums up my bill priorities in the order they need to be taken care of and reminders on my calendar to check it periodically. Here are the top 5 things on my list as of right now:

1. Rent (I always make sure my rent is set aside. Being homeless = not a good idea.)

2. Court Fees (Speeding tickets people, speeding tickets. I’m no criminal.)

3. Cell Phone (For me, I need my phone on for potential employers, etc.)

4. Car Insurance

5. Credit Card Bills

I’ve conditioned myself to take care of the important priorities by having my friend reward or punish me with small things, like taking away my laptop  for a couple of hours, or we’ll grab a bottle of wine as a reward. With proper budgeting I have enough to take care of everything.

Planning

I was an impulse buyer. I’d go grocery shopping with no list, a rough idea of what I needed, and a wad of cash. I’d walk into the market and out with a whole bunch of random food, inevitably forgetting an essential, like milk. I’d end up spending way over what I’d planned. Now, any time I go grocery shopping, I make a detailed list beforehand and, most importantly, I don’t deviate.

Banking Alerts

If my bank gave me the money they charge for over drafting, I’d be sitting on a beach somewhere drinking wine and doing nothing. I was horrible at looking at my account balance daily and making sure I had enough to spend. Thankfully, we now have modern technology. If you bank online, there’s a way to set up email and text alerts if your account drops below a certain amount. And (depending on the bank) you can even make it send you your balance text after every purchase. I don’t have an excuse to over-draft anymore.

Savings Accounts

My dad taught me the value of a savings account, I just never paid attention. “Have money, will spend” has always been my mentality. What I’m trying to do now is put away 10% of my check into a savings account and never look at it again. If I ever need car repairs or have an emergency, I’ll have money ready to go.

Some of these strategies I practice now. Others, I’m not fully on board with yet (e.g. putting money in a savings account).  Do you have any advice to make it easier to manage my finances? What have you learned from your moments of weakness?

Victor Bezrukov/Flickr

I went over my cell phone minutes the past two months and the overage charges bothered me so much they seeped into my sleep. Two nights ago I dreamed that I called AT&T and asked them to bump me up to a more expensive plan and forgive my overages.

And they did!

I woke up refreshed and wondering if I had actually called AT&T. Turns out the dream – and the overage forgiveness – was just that.

Drat.

I decided to call and ask if my new plan was pro-rated, giving me a few more minutes until the beginning of the month when my plan resets. While on the phone with a nice gentleman named Rham I asked if it was possible to forgive my overage charges this month, seeing how I was a loyal AT&T customer who always paid my bill on time.

“Let me see what I can do. Please hold.”

Rham came back on the line. He couldn’t immediately credit my account for the overages but put in an “adjustment request.” I would get a call early January with the adjustment amount. The last time this happened I received an adjustment (read: credit) for $1,214.65 so I expect full or partial credit this time.

“Is there anything else I can help you with?”

“Well, yes. I also went over my texting plan this month. I’d like to bump up to the next texting plan, and, if I do, is it possible to forgive my overage charges for extra texts in December?”

Rham asked me to hold.

Unlike my minutes overages, Rham was able to immediately credit me $20-some dollars for my overage texts. (At $.10 a pop they add up slowly, but apparently I texted like a teenager in December!) And he pro-rated my new texting plan so I don’t have to worry about texting the rest of the month.

“Thank you for the excellent customer service you have provided me with today,” I told Rham before hanging up.

“You’re very welcome.”

I see the call as a win-win for AT&T and myself.

AT&T keeps a longtime customer happy (so much so that I’m blabbing about it to everyone) and they make more money off me to the tune of $30 extra a month. I save money (at $.45/minute extra paying up front is the cheaper route) and I am more loyal to them because of the consideration they showed me.

Proof dreams come true!

Related: My bra dream: proof I need to spend

Haggling 101

This is a guest post by Alex, BargainBabe.com’s intern.

The iPhone has become quite the celebrity and as a result it has alienated it’s closest, much cheaper cousin, the iPod Touch.

If you take an iPod Touch, buy a headset with a microphone, and download an application called Skype, you end up with something incredibly similar to the iPhone. But it’s a lot cheaper. You can make and take calls, and even set up an answering machine.

What’s the catch? The iPod Touch must be connected to the internet via Wifi in order to make phone calls. This isn’t always a downside. WiFi hotspots are becoming more and more common. There’s even an application that will locate Wifi hotspots near you.

Let’s do a quick cost comparison to see what the iPhone’s convenience costs compared to the iPod Touch.

Features by Comparison:

iPhone: Built-in microphone, built-in camera, AT&T phone service, access to satellite internet, Wifi optional, 8 GB hard drive, text messaging optional through AT&T, email and Safari web applications included.

iPod Touch: Headphone microphone, must use Wifi, Skype phone service, 8 GB hard drive, text messaging optional through Skype, email and Safari web applications included.

The iPhone is clearly more convenient, but to purchase one at a reasonable cost you must sign up for a 2-year AT&T contract and the monthly internet. Without signing up for a 2-year contract, a new iPhone will easily cost $400+.

On the other hand, Skype is free to try and doesn’t force you into contracts, plus they can’t nail you with overage charges. You can stop paying that $2.95 per month whenever you want and switch to a better deal if you find one. Still, with Skype you have to purchase a phone number if you want other people to be able to call you. That phone number will run you $30 per year when you purchase a year of service.

You’ll get a cheaper monthly cellular service if you share a family plan, and save even more if you limit your use of minutes. Click here for a list of AT&T plans, and here for Skype.

Maybe after all these comparisons it seems like the iPhone is not worth the money and the iTouch is not worth the hassle. I think there’s a lot of people who would agree with you, which is why I came up with a third option, buying a used and older model iPhone.

By purchasing used, you avoid getting pulled into a two-year wireless plan that comes with a new one, and by purchasing an older model (nicknamed the iPhone 2G) your wireless data plan costs $20 dollars a month instead of $30. You’re paying for a slower connection, but it’s still quite functioning when it comes to downloading email or reading the latest news on the go.

If you search eBay for  iPhone 2G, you’ll see that $150 is about as cheap as the old iPhones are going for. It’s more expensive than a brand new one! There’s so many people who either don’t want to start a new 2-year contract, or they’re already in the middle of one from the “latest technology” they bought last year, that there’s a big demand for used iPhones with no contract.

Be on the lookout in the near future. Wifi networks are ever-expanding and there are a lot of rumors floating around the web on a new iTouch with a built-in microphone and camera. The iPod Touch Alternative might just become even more cost effective.

The Op-Art piece reads: “iPanic: helping you deal with the loss of your life savings, one app at a time.” A sampling of the “apps” including:

Never Mind: $3.99 “Choose a vacation from more than 1,000 popular destinations, dinner at a restaurant you’ve always wanted to try or a round of golf at any one of your favorite courses. Never Mind calculates the money you save by not going.”

4merly Hot: $14.99 “Tired of economizing alone? Upload a picture of yourself when you had money, then use your iPhone to meet other singles pretending they still have money, too.”

Fantasy Finance League: $9.99 “Field your own 401 (k). Make imaginary trades with stocks you used to own. FFL keeps score, compiles stats and automatically updates when you could have retired.”

2 Late Now: $7.99 “Create, edit and save spreadsheet files documenting all the things you wish you’d never bought.”

Scrape: $6.99 “By using your iPhone’s GPS, Scrape lists part-time jobs within a five-mile radius of your current location. Find the opportunity to match your experience and skills, from valet parking to wearing a taco costume.”

Hmmm…the message I’m getting is that even as we watch our life savings disappear, we continue to pay for luxuries like the iPhone (guilty as charged!) But in my defense, I only download free apps.

So maybe you don’t have an iPhone, but I bet you have some other secret spendy habit that you are loathe to reveal to other bargain hunters. Spill the beans!

I’ve been meaning to blog about Fring, one of the apps mentioned in this post, but the others I am new to. If you have an iPhone, check it out!

Thanks, Luke!

• food (though generally not at a restaurant unless you call ahead and make a special deal)
• travel arrangements through an agent
• clothes
• shoes
• electronics
• home goods
• services like hair cuts, massages, and spa treatments
• anything at a garage sale
• monthly contracts including your cell phone, cable/Internet, newspaper, magazine
• health care (especially if you can pay upfront in cash)
• oil changes and car maintenance (if you negotiate ahead of time)

What else have you negotiated a discount for that is not on this list? Leave a comment!

Compare your rates to other plans on BillShrink.com, which asks you a few questions about how many minutes you use, if you text and if you have a data plan. Then it spits out a list of similar plans, calculates the yearly savings and shows the signal strength at your home and work zip code. It found a slightly cheaper plan for me, but it does not include texts or data so I think what I have is actually cheaper.

For reduced medical care, the CNN story suggests checking out free Federal medical clinics for basics like immunizations, checkups, dental care and medicine. The Association of Medical Colleges might also be able to help if you are uninsured.

The article’s tips for cutting your car insurance tab were old hat – keep your credit score high because that’s what your rate is based on, ask for discounts based on your profession, and raise your deductible (if you have the savings to cover the difference!).

Some cell phone carriers do not charge you when you call someone on the same carrier. AT&T does this, for instance.

Other carriers let you call a certain number of people for free, like T-mobile, which lets you chose five “faves.”

But the best way to save is to have multiple phones on a family plan. Adding an additional line can be as little as $10 a month. Bump up the minutes if you need to and split the cost.

Remember to talk about how many minutes each person typically uses before you join forces. If you use your cell strictly for emergencies, you won’t be happy with a chatterbox on your plan. Everyone on the family plan does not have to live at the same address, but make sure your add-on friends will pay you.

One place to compare family plans is LetsTalk.com. They listed a Sprint Everything Messaging plan that has 3,000 minutes and unlimited texts. The plan is $150 for two lines. Additional lines are $10. Get four people on the plan and it’s $42 per person. Not bad for 750 minutes each. Thanks, Kate!