Cell phone Carrier Freedom Day is that day when you’re finally free of your cell phone carrier contract and can move to a lower-priced option without the stranglehold of the legacy cell phone carrier.  Recall The Money Skinny™ mission is to save you time and money.  Mark the Cell Phone Carrier Freedom Day on the calendar so you can run away from your current cell phone carrier like your hair is on fire.  Finally take advantage of the switching carrier incentives that ignore existing customers and goes something like this:

You’re new?  Have a great deal. 

You’ve been paying us forever?  Take a seat.

Cell Phone Carrier Freedom Day

The Money Skinny™ household’s Cell Phone Carrier Freedom Day was October 21, 2016.  That was the second anniversary of the purchase of the latest and greatest phone that was run over by a car when it was three months old.  Three months!  The payment plan lasted about two and a half times longer than the actual cell phone.  Research alternatives a few weeks before the cell phone carrier contract expires to be ready to pounce on Cell Phone Carrier Freedom Day.   What actually happened on October 21, 2016?  One daughter jumped off my cell phone plan.  Well, that’s good.  I am researching cell phone plans and will pull the trigger when I find a better solution.  My current service plan went from a two-year agreement to a month-to-month agreement.  If my current plan required recommitting to a year or more, I’d have changed carriers when the contract expired.

Cell Phone Carrier Network Leases

The major cell phone carriers lease networks to smaller companies.  Often with lower monthly prices.  For example, Cricket uses the AT&T network.  You don’t need to buy a new phone if you switch to a smaller carrier using the same network.  The monthly savings more than offsets a one-time activation fee.

The 300 Multiplier

Let’s use the 300 Multiplier to put a monthly payment into context.  Multiply a monthly payment by 300 to calculate the total value of the payments over twenty-five years.  $100 per month may not seem that expensive for cell phone service.  Using the 300 Multiplier, $100 per month times 300 equals $30,000.  C’mon now.  $30k just for service.  Not even the phone.  Insanity.  Those monthly payments that seem affordable when they are being made can really add up to a substantial amount over time.

Other Uses of the 300 Multiplier

What other monthly payments do you make?  Maybe cable tv and internet service?  Perhaps even haircuts?  Looking at monthly payments through the 300 Multiplier can help you assess how much you really value that service.  Do you really want to spend $15k ($50 per month X 300) on your ever-growing hair?  Again, c’mon now.

Need a new phone?

Need a new phone to go with that new cell phone carrier?  Buying one generation back from the newest model can save money.  At a minimum, if selling your current cell phone is part of the equation, check Swappa.com for cell phone and other device buying and selling options.  The Swappa website will provide an assessment of how much your cell phone is worth.  Planning to use the cash from selling your current phone to buy a new one?  Good to have an accurate estimate of your phone’s value.

Don’t forget Craigslist

Review The Money Skinny™ post Craigslist Selling in 5 Easy Steps to resell your current phone.  There may be a cell phone buying opportunity on Craiglist.org as well.