Penny Pinching

Throughout this month I have read several posts, blogs and ramblings about New Year's resolutions.  I agree that January is a good time to review what has gone well in the past year and areas where I can improve, but the word resolution sounds so final - so resolute.  I prefer the word "goals."  I have made a couple goals for 2011.  The first is to exercise more often.  My new Wii Fit is helping tremendously with this goal and I am going steady at 20-30 minutes a day, 5 days a week.  The second is to have better control of my finances.  This includes monitoring my bank account balance for frequently (at least 2 times a month or every week instead of the once a month I am good for), pay bills on-time (I've signed up for a free ebill pay through my local credit union to help with this), and develop a budget that includes putting money aside for anticipated infrequent expenses (property taxes, license fees, oil changes, etc, etc).  This last one is where the penny pinching comes in.  After all is said and done, I need to save about $150/mo for the infrequent pile, which translates into "every penny of my money is accounted for each month."  There is no room for error and very little room for surprises.  And so I am looking for areas where I can decrease expenses.

I should first say that I feel like I have my monthly expenses down to a minimum.  I don't have cable TV and haven't for 10 years.  I shop cell phone rates with every expiration of my contract, as I also do with home phone and internet.  But I still pay student loans (the downside of going to a private college), have a car payment and like a little luxury in my life.  I have determine I "waste" most of my money on two things - eating out and yarn.  I have set a budget for the eating out  and yarn, that I think is reasonable.  But I still come up short with wiggle room in my budget. 

So this weekend's investigation turned to pre-paid cellular services.  I have had several conversations with friends about Wal-Mart's Straight Talk.  I have yet to hear anyone I know of complain about the coverage.  Then another friend suggested I also look at Boost Mobile.  After some brief research about coverage areas and such, these are the two providers I have narrowed it down to for my local area.  Straight Talk runs off of Verizon networks, which are very strong around here.  Boost Moblie runs off of Sprint networks, which I have mixed feelings about.  So why switch from a cellular plan to prepaid you ask?  Here are the reasons I have come up with:

• They are significantly cheaper than a contract plan.  For example - I am currently spending $79.53 after taxes and everything on my cell phone.  With Straight Talk, I would go to $45 ($34.53/mo in savings) and with Boost Mobile, I would go to $50 ($29.53/mp in savings).  Boost is also doing a customer loyalty program where your bill decreases by $5/mo for every 6 months of on-time payment for service, going as low as $35/mo. 
• I can get a phone almost identical to the one I carry now.  I currently have the LG UX-265.  Each network has a phone that is similar to this phone.  The cost is between $100 - $150 for the phone.  However, I paid $50 for the LG UX-265 AND I'd be saving money in the monthly bill, so I can afford to spend a little more on the phone. 
• Both run off of well known national networks. 
• I can actually INCREASE what I get in a cellular plan by having unlimited texts (I currently only have 250/mo) and unlimited web access (I currently have none). 

So I am thinking that this is not a bad route to go.  But I am going to throw out this question to the readers: Do you have one of these plans?  What kind of service coverage do you get?  Is this a good way to save some money? 

To other readers:  What other ways do you save money or control what money you do spend?

I look forward to your responses!