Think about the one thing you can’t live without.
If you’re anything like me, you might say your smartphone. It connects me to the market, my music, calendar, Facebook, email, budget… I even make a phone call every so often. While it’s essential, I won’t let the cost get over $50 before tax. (I love my smartphone, but I love my money more.)
Recently, my bill crept up to $86 with tax. Since there are many new telecom competitors entering the market, I knew I could lower my bill. I called and had my bill reduced to $52! If I stay within my plan limits, this will be $408 in savings per year (which equals a flight to NY or LA!).
Want to do the same? Follow these steps to score savings and improve your plan (it’s another win-win).
1. Compare plan prices from Smartphone carriers. The best deals are offered to employees of large companies, so see if you can get a group rate based on your employer.
2. Look for the best package. Find the best $50 deal that includes unlimited calls after 5 p.m. and on weekends, over 500MB of data (or more), unlimited texting, voicemail and caller ID. No one needs to spend more than $50 on a phone bill. If data’s your problem, look for Wi-Fi locations to use less.
3. Ask for a better deal. Call your carrier and ask for a reduced price, since there are new competitors with cheaper options. This guy (or girl) is just a door to the person who has the real power, so humour them as the try to take $5 to $10 off your bill. Say “Thanks so much but it is still way too much, can you now tell me how much it would be to cancel?” The alarm bells will go off as he offers you the moon – then ask to be transferred to the customer loyalty department. You’re on your way to incredible savings!
4. Use your charm. When you get to the loyalty department, work that charm. This department gets all of the livid customers and your cheeky and flirty conversation is a welcome treat for them. I'll joke and say, “Sandy – is that the best you can give your favourite customer? I'd cancel and pay the fee just on the principle that you're not giving me your best deal!” The telecoms are being squeezed by new competitors, and they have a list of all the best deals. Have them compare your usage to the list of competitor plans they have and get the cheapest rate you can. Play hard to get until you get what you want. It's like dating – they’ll chase what runs!
5. Keep scouring for a better deal. If you find one, call them up and try to get that option. If your bill ever gets messed up or they charge the wrong amount, phone your company and try to get some free stuff. Again ask for the loyalty department and see what they can do for you.
6. Buy the common stock of your major telecom. They all pay great dividends, have great growth potential as mobile phone penetration in Canada increases and are relatively recession proof. If you get a 3-5% dividend yield from owning your own telecom like BCE, Rogers, or Telus with a $10,000 investment – you would get $300-500 per year to go towards your bill. Why not get them to pay the entire thing?
Keep loving your money, and $408 of sweet savings will love you back.
Have an awesome week,
Dave
David C. Lester is a Professional Financial and Life Coach and author of the popular Canadian personal finance lifestyle blog, iheartmoney.ca. Throughout his career he’s gained his personal finance expertise from holding advisory positions within various financial institutions. David currently resides in Toronto, ON with his family dearest friends never far away. In his spare time Lester is an active equestrian and is passionate about art.