These days, many of us are attached to our smartphones. We don’t just use them for calling and texting anymore, we also rely on these little handheld computers to track down information online, check social media channels, and even get work done.

If your smartphone is starting to feel outdated, then you might be looking for an opportunity to invest in a new one. Unfortunately, if you want some of the best technology in the market in your pocket today, you may need to be willing to pay thousands for the privilege.

So, how do you save money on a smartphone that could be essential to your day-to-day life?

1.     Look at Contract Options

One of the easiest ways to buy a new phone today without paying a huge amount of money up-front is to get it on contract. When you pay for a contract, you spend a certain amount of money each month on both the cost of your handset, and the price of the services that you want, such as minutes, texting, and data allowances.

Lately, the cost of smartphone contracts has been going up, which means that many consumers are beginning to consider the benefits of a SIM only deal instead. With a SIM only deal, you pay only for the services that you get and buy the phone separately. While this is more expensive up-front, it can save you a fortune in the long-term.


2.     Consider a Personal Loan Instead

Most people assume that if they don’t have the cash to buy an expensive handset outright, their only option is to commit to a contract deal. However, that’s not necessarily the case. If the money that you would pay on your smartphone contract is more expensive than the interest and repayment costs on a personal loan, then it might be a better option to take out a loan and use that to buy your handset instead.

Don’t be afraid to compare all of your options when you’re looking into buying a new phone. Having the cash in hand from a personal loan will also mean that you can look into second-hand models and refurbished phones too, which could save you some serious cash.

3.     Compare Different Providers

Comparison websites are available for everything these days. You can use them to check the interest rates on a new loan or decide whether it’s time to switch utility providers. Unfortunately, comparing smartphone contracts is one of the most difficult things to do with an online website. There are so many different factors that need to be considered, from the model of the phone that you want to the amount of minutes, text, and data you get.

Despite the complexity of comparing different carriers and providers, there are still a handful of websites out there that can help you to learn more about the different prices you can get from different carriers. If you struggle online, you can always visit multiple local stores and get quotes from each of them.

4.     Be Realistic About What You Need

It’s easy to get carried away when you’re buying a new phone. You might tell yourself that you need the best camera quality and the fastest internet response around. However, if you’re really only going to be using your new device to send texts, then there’s no need to go over the top. Think about the features you can’t do without on your new phone.

If you’re buying your handset outright, you can save a lot of money by choosing a refurbished phone, rather than one that’s brand-new. Refurbished models have been cleaned up and improved by the manufacturer, so you’re not just getting someone’s old and grimy handset.

5.     Reconsider Phone Insurance

A smartphone can be a huge investment depending on what kind of model you buy. When a provider offers to protect that investment for you in exchange for a small insurance fee each month, it can be tempting to pay for the additional peace of mind. However, phone insurance isn’t always as valuable as it seems to be.

Ask yourself whether you’d be better off putting the money you’d invest in phone insurance away into a savings account each month instead. This way, you’d still have money aside in case you need to fix or repair your phone. However, you wouldn’t be tied into a specific monthly commitment with an insurance provider. Sometimes, phones can also be covered by insurance from a premium bank account or home insurance policy too, so check those things before you take out extra cover.