Samsung's new Galaxy S4 phone is making headlines and it's
leaving the Apple (NASDAQ:
) faithful feeling like they're
holding one of these
. (Don't lie; you had one of these phones.) Despite the other
carriers rolling out phones that are, arguably, just as good or
better than the iPhone, its cost is still through the roof.
The only way to make it palatable is to sign a two year
agreement with AT&T (NYSE:
) or Verizon (NYSE:
) to bring the cost of the phone down to a "reasonable" $199.99
for the lowest cost phone. However, with that agreement, you are
going to shell out somewhere around $2,600 over those two years.
That's about $116 per month.
The frugal of the world know the secret to paying less for
their iPhone. It's all about prepaid. These plans can bring your
cost down to as little as $42 per month. Here's how to do it.
First, don't fall for the brainwashing. The past couple
iPhones have not been extraordinary. The upgrades are subtle and
while the panoramic picture option might pay for the cost of the
phone all by itself (#sarcasm), is it really worth purchasing a
Unless you have skills as an iPhone hacker, you're going to
need to purchase an unlocked phone. The newest iPhone will set
you back $649 but earlier models can cost as little as $379 at
) or Best Buy (NYSE:
If you're willing to take the chance, you can find them for as
low as $139 online. (Of course there's always that techie friend
or relative who wants to sell their old phone for cheap so they
can get the newest model.)
Next, take it to a wireless provider. You can only use your
unlocked iPhone on a GSM network, which limits your choices to
AT&T and those companies that use the AT&T network. You
can purchase prepaid service directly through AT&T or you can
go through companies like Straight Talk Wireless, H20 wireless,
Red Pocket Mobile, and others.
Using your unlocked iPhone, plans start at $45 per month for
unlimited talk, text and data. Some plans even allow you to
prepay a set number of months to bring the price down even
The math works out like this. With the regular 2-year contract
plan, you paid roughly $2,800 over two years when you add in the
cost to purchase the phone. With the prepaid plan, you paid about
$1,300-a savings of 54 percent. Of course, taxes and activation
fees will bring the cost up but the savings are still
If you're an android user and want in on the deal, it works
for you too.
If you think you can survive without the newest phone complete
with features you're never going to use, saving $1,500 over the
course of two years could pay off a lot of debt, fund retirement,
start a college fund, or let you invest in a dividend paying
stock. (If you were looking for ideas that would make personal
finance gurus happy.)
(c) 2013 Benzinga.com. Benzinga does not provide investment
advice. All rights reserved.
Profit with More New & Research
. Gain access to a streaming platform with all the information
you need to invest better today.
Click here to start your 14 Day Trial of Benzinga