10 Money-Saving Tips to Stash $10,000 – Tip #6

by Jason on March 2, 2010

Tip #6 – Get Rid of Your Home Phone

Welcome to day six of our roughly 10-day journey, where we are looking at 10 money-saving tips to help save $10,000!

If you missed the introductory post of 10 Money-Savings Tips to Help You Stash $10,000 you’ll definitely want to check it out so we’re all on the same page.

But to sum it up – here’s our mission:

  • The Goal: Save $10,000
  • By When: This time next year
  • How: By implementing 10 money-saving tips

For the next couple weeks we’re going to look at one money-saving tip each Monday through Thursday.

On Thursdays we’re going to look at a tip, but also hear Personal Finance bloggers’ and hopefully some readers’ ideas and experiences on how they’ve saved money!

If you’d like to be included in the Thursday posts – please let me know your best money-saving tip here! We’d love to hear your stories of what you did and how much money you saved by implementing your tip!  If you’re a blogger and have posted about your money-saving tip, please include a link to your post!

Here’s what we’ve been through so far:

Tip #6: Get Rid of Your Land Line

This one can be related to Tip #5, but it’s important enough to note a distinction.

Many of you have probably already gone this route, but I’m sure there are a few of  you that haven’t.  It’s funny, I say this as one having not had a home phone in about five years to getting one with our new place and here I am writing that you should get rid of it.

The main reason we got one was because it was actually a little cheaper to get the very basic land line package so that we could upgrade our high-speed internet.  The land line cost itself (minus the taxes) is $8.50 per month and it includes 30 local phone calls.

Don’t miss another post! Get Redeeming Riches delivered straight to your inbox!

For years, however, my wife and I used our cell phones exclusively as our only phone options.  We had plenty of minutes and it allowed us to save some money on the land line service.  An alternative is to get a Verizon, AT&T, or T-Mobile prepaid phone to avoid having to pay for a data plan, and only paying for minutes and text messages.

After researching phone and internet plans when moving into our new home, I realized just how expensive that home service can cost!

Aside from our basic, no-frills, “don’t-call-too-many-people” plan, the next cheapest plan was around $25 a month!  Tack on your taxes and surcharges and you’re upwards of $35-$40 pretty easily.

Alternatives to Land Line Phones

As I already mentioned, just using a cell phone is a great alternative to paying for a home phone. But there are other alternatives out there as well.

Matt from Steadfast Finances says he trimmed the telecom fat by cutting out his land line AND cell phone and only uses services like Skype or Magic Jack.  He’s saving $50 per month by making some cuts.

I asked Matt if he missed his cell service at all, and he said, “Not really, even after four years.  There is a bit of freedom without  always being “reachable” 24/7.”

Kudos to Matt.  I know I couldn’t go without a cell phone, but he does make a good point about always being reachable.  Of course, I could always turn the cell off too – but I never do.

Matt is just one of many people that are making a move to internet phone services like Magic Jack and Skype.

Who hasn’t seen one of those cheesy Magic Jack infomercials!?  Along with Vonage, these are probably the three most popular services like this out there.

I’ve heard some good things about Magic Jack, but also some not so good.  A site called Spot Cool Stuff, gives a really great and in-depth review of Magic Jack, Skype and Vonage!

The conclusion is if you want cheap, go with Magic Jack, but there are some negatives that go along with it – so buyer beware.

The bottom line is that this is just another area that needs to be evaluated in the grand scheme of things to see if you can cut back and save a little cash.

Estimated Savings: $25-$50 per month

What are your experiences with home phones?  Have you cut the cord?  How much have you saved?

Check Out All The Tips From Our Series

Tip #1: Cut Back on Going Out to Eat

Tip #2: Evaluate Your Entertainment

Tip #3: Cut Your Cable

Tip #4: Turn Your Heat Down

Tip #5: Negotiate Your Cell Phone Plan

Tip #6: Get Rid of Your Land Line

Tip #7: Slash Your Grocery Bill by Cutting Out Junk Food!

Tip #8: Use Coupons, For Everything!

Tip #9: Negotiate Your Home and Auto Insurance

Tip #10: Start Packing Lunches!

Google+ Comments

Related Posts