Your Life for Less - Finding Ways to Save on the Life You Love to Live

What are MVNOs, and How Can They Save You Money?

19. March 2013 · Write a comment · Categories: Cell Phones, Save, Technology · Tags: cell phones, MVNO, non-contract

Watch out, AT&T and Verizon.

You’ve probably noticed a lot of new cell phone companies popping up recently. Most of these are known as MVNOs, or Mobile Virtual Network Operators. What the heck?

Basically, MVNOs are retailers that buy voice and data coverage from the giant companies we all know. AT&T, Verizon, Sprint, T-Mobile and others own the cell phone towers and something known as spectrum, or airwaves through which our communications flow. Most of this spectrum is reserved for their own customers, but some is made available to the MVNOs, who buy it at wholesale rates. It’s then sold to you at a deep discount.

What’s so great about these new players? Lots of things. They’ve turned the traditional contract-oriented business model on its head, and eliminated most of the drawbacks we associate with major cell phone providers.

Let’s talk about cost. You typically pay about half as much per month as you would with one of the Big 4. Virgin Mobile USA, which runs on Sprint’s network, offers plans starting at $35 a month. This plan includes unlimited data and texts and 300 voice minutes a month.

If you talk more than that, the industry standard for unlimited everything is $45 a month. That’s what Straight Talk, the best-known MVNO, charges for their plan. Depending on which phone you get with Straight Talk, you could be on any of the four major networks.

MVNOs operate on a prepaid business model, where you pay for service up front. They offer non-contract service, which means they darn well better provide good service and treat you well. If they don’t you’re free to kick them to the curb at any time.

Compare that with the Big 4, whose business model depends on slapping you with two-year handcuffs. You think they’re very motivated to provide service once you’re a prisoner?

The downside for MVNOs is that the phones aren’t subsidized. You have to pay real money for a new one – often $200 or $300 – depending on how fancy you want to get. The tab goes up to $500 or more if you want the newest iPhone.

For most consumers, that big upfront cost is downright scary. We’re used to getting a new phone every 18 to 24 months and paying no more than $200. Some can even be free, depending on promotions at the time. But that initial savings is easily eaten up with the higher monthly rates.

Let’s look at an example. At Verizon, you get one smartphone with 2GB of data for $100 a month ($110 after taxes and fees). You choose the Samsung Galaxy S III, which sets you back another $200. Total cost over two years: $2,840

Compare that with Straight Talk. You get unlimited talk, text and data for $45 a month. The closest phone they offer is the Samsung Galaxy S II for $350. Total cost over two years: $1,430

You’ll have to settle for the previous generation phone, but it’s always best to avoid state-of-the-art anyways. Even with the higher upfront cost you’ll pay exactly half with Straight Talk. The same is true with any of the other MVNOs.

My contract with AT&T expires later this year. I’m excited to explore the non-contract options over the coming months and see what’s out there.

It’s never been easier to escape the clutches of a two-year contract. The savings are real. What would you do with $1,400?

[Note: If you're curious, Wikipedia has an excellent list of MVNOs and which major network they're on.]

Photo by sciencedaily.com

Don’t Let your Credit Card out of Sight

05. March 2013 · Write a comment · Categories: Credit Cards, Scams & Ripoffs

The Ripoff Alert is an ongoing series alerting you to the latest scams and ripoffs. What to look out for and what you need to know to stay safe. This is #24 in the series.

How many times have you seen someone lay their credit card on a checkout counter while waiting to sign the receipt?

Maybe you’ve done it yourself recently. I want to alert you to a growing scam taking place in retail stores across America.

Using the camera on a smartphone, criminals are taking pictures of your credit card as it lies there face up on the counter. All it takes is five seconds.

Cameras in smartphones have improved drastically in recent years. It’s now possible to zoom in from six, eight or ten feet away and take a crystal clear picture of something as small as a credit card. And that’s exactly what they’re doing.

In all the commotion of the cash register you probably won’t notice anything suspicious. The cashier, who attempts to save you 10% on your purchase by offering a store card, doesn’t help. That’s why you have to make it a point ahead of time to protect yourself when you’re out shopping.

Some credit card companies are becoming wise to this tactic and are completely leaving the card number off the front of the card, opting instead to print it on the back.

The simplest tip I can give you is to never leave your credit card lying around. Even just for a second. If you’re not physically using it to make a transaction it needs to be in your wallet.

Don’t leave your wallet or purse unattended either. So often people get caught up in the shopping experience or with the kids and leave their wallets sitting somewhere. To make it easy on yourself, only carry the forms of payment you plan to use that day.

Criminals are betting and hoping you’ll let your guard down just for a second. Don’t fall into that trap.

Photo by mybanktracker.com

How to Find Money When Going Back to School

26. February 2013 · 1 comment · Categories: Self Improvement

The definition of a traditional college student is changing with each academic year. College classrooms used to be filled with 18 to 22 year olds, without much age diversity at all.

Fast forward to 2013. It’s now common to see students in their 30s and 40s going back to school in the middle of their working lives as part of a career change.

Maybe you’ve thought about going back to school yourself, either to advance in your current field or to study a new one. But a lot has changed since you first set foot in a college classroom all those years ago. The most relevant for you: Tuition has skyrocketed during the past two decades, much faster than the overall rate of inflation.

The effect of excessive student loans has been so severe on recent grads that some are even putting off their dreams of having kids or buying a house so they can service their loans.

Going back to school is a worthy goal, but doing so shouldn’t cause you financial hardship. There are a few things you can do as part of your college search that will help you avoid extreme debt.

1. Visit Fastweb.com. This site is a treasure trove of information for everything you ever wanted to know about applying to college. You can learn about early applications, filling out the FAFSA, and how best to prepare for tests or interviews. Best of all, they match you with scholarships from their database that best fit your situation. You have to fill out your profile with information like your major and colleges of interest, which they then use to find the most relevant scholarships.

2. If you plan to keep your job, check to see if you’re eligible for tuition assistance. Many employers offer at least a partial tuition benefit to encourage loyalty. This is especially relevant for those who want to stay on the same career track.

3. Look at any professional organizations you’re a member of. Do they offer scholarships to people going back to school? How about your church?

4. For graduate students, meet with your dean or department head to see if there are any research or teaching assistant jobs available. This is probably the most overlooked source of money for graduate education. It may involve some ongoing work on your part, but you’ll likely gain valuable experience and contacts in your field along with the dough.

Remember, a college education is an investment. Consider all the costs involved and how much more your new degree will likely earn you in the workplace. My hope is that these tips will help you offset part of your expenses along the way.

Have you found money from these or other sources for returning to school?

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Should You Always Buy the Cheapest Insurance?

19. February 2013 · 1 comment · Categories: Insurance

I’ve written about insurance a lot over the past few months. I even developed an Insurance Buying Guide to help you decide which types of insurance you need.

In a previous post about inertia and why staying the course can hurt you, I said that those who remain with their insurance provider year after year are probably paying too much. Most people never shop their insurance rates, so they have no idea what kind of deal they’re getting.

But this assumes all insurance companies are equal. According to Consumer Reports and J.D. Power, some insurers are better than others. In surveys they conduct, two insurers stand above the rest in customer service year after year: USAA (for military service members and their families) and Amica Mutual. What if you’re already with one of these two – do you still need to shop quotes?

This blog is normally all about helping you handle money better and save as much as possible. In this case I have to make an exception. With insurance, you can’t base your decision on cost alone.

Instead, the focus needs to be on how you’re treated when you make a claim. Surveys have shown that when the chips are down, these two companies stand head and shoulders above the others in resolving your claim.

Think about it this way. You buy insurance hoping you’ll never need it, but expecting that if you do the company will be there for you. In my opinion it’s worth paying a little more for a company with a proven record of great customer service.

We’ve all heard stories about cars being totaled or trees falling on houses and what a pain it was to deal with the insurance company. Switching to one of these two companies will greatly reduce your chances of going through something like this.

But if price is a big deal to you, shopping around can make a big difference in your premiums. Get quotes from at least three companies so you know what kind of deal you’re getting.

If you want to be with one of the two best but the premiums are too high, try raising the deductible.

Take this from a cheap guy: Cheapest is not always best in the insurance industry. Focus instead on how you’ll be treated during the claims process and you’ll be happier in the end.

Photo by goinsurancerates.com

Money-Saving Cell Phone Alternatives

05. February 2013 · 2 comments · Categories: Cell Phones, Save, Technology

How many cell phone minutes do you use each month? Chances are it’s a lot fewer than you’re paying for.

But even if you do talk a lot, cell phones aren’t always the cheapest way to make those calls. Sure, there are times when only a cell phone will work. But if you do a lot of your calling from home, switch to one of these alternatives to save big each month.

I’ll start with the cheapest option and work up to the most expensive (but still cheaper than buying minutes from the cell phone company.)

Google has a service creatively known as “Call phones from Gmail” that lets you call any phone in the US and Canada from within Gmail. They recently announced it will be free for all of 2013. I tried this out the other day after getting fed up with AT&T’s poor cell phone reception in my apartment, and the calls were crystal clear. The caller on the other end said it sounded like I was in the other room talking.

All you have to do to start making calls is install a plugin and log into Gmail. They also offer free video chats, which I didn’t test.

Another option is magicJack Plus. While the original magicJack required a computer to use, this one works with or without a computer. And that’s a game-changer, because who wants to wait for a computer to boot up before making a call? Just plug the device into your modem, and after a brief registration you’re up and running. You can even transfer your current number.

They’re doing a free 30-day trial right now, so check it out. After that it’s $20 a year.

Finally, there’s Ooma. Don’t ask me how they came up with a name like that, but according to Consumer Reports, Ooma is tops in call quality bar none. That includes land lines from AT&T, Verizon and others.

The most expensive of the three, it’s also pretty darn convenient. You don’t need a computer up and running to use Ooma. Yes, it works through the internet, but it plugs straight into your modem. Just like MagicJack, you plug your home phone into the Ooma device and start talking.

Ooma costs anywhere from $130-$150 for the device, although I saw it on sale at Costco for $100 recently. The only other costs after that are about $45 a year in government taxes and fees. You may be able to save that in one month by reducing your cell phone minutes.

My take: If you don’t mind using a headset and sitting at your computer, the first option is best. But if you like using an actual phone and enjoy the flexibility to move around the house, the other two are better options.

All three of these services offer unlimited calls over the internet for basically zero dollars. If you’re on the fence about reducing your cell phone minutes, take the leap and give one of these a try. Talking over the internet is a heck of a lot more cost efficient that busting your budget with the cell phone company.

The call quality is much better, too.

Ways to Save on your Cell Phone Bill

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