Here's How to Pay $25 per Month for Your Smartphone Bill

While inflation may be cooling, the price of nearly everything around is still much higher than it was a few years ago -- and that goes for your monthly smartphone service bill. A WhistleOut survey found that the average phone plan now costs $114 per month.

Unsurprisingly, most people don't love paying that much. The survey showed that half of Americans are unhappy with their smartphone bill cost. If you're one of them, you may benefit from the phone plan hack I stumbled on a few years ago: The $25-per-month prepaid smartphone plan.

Similar service, big discount

A few years ago, I signed up for AT&T's prepaid plan, which costs just $25 per month when you pay for the entire year upfront. I pay all taxes and fees in that one-time payment -- a total of $319 -- and get a year's worth of service.

WhistleOut's survey says the average single-line cellphone plan costs $76 per month, meaning my cellphone plan is three times cheaper -- about $600 less per year -- than the average single-line plan.

What do I get for that price? My plan comes with unlimited talk, unlimited text, and unlimited data, capped at 16GB of high-speed data. Up to 10GB of unused high-speed data rolls over to the next month. I can also use my smartphone as a hotspot for free.

And, while I don't have a 5G-capable phone, my plan does include access to AT&T's 5G network.

What's different about prepaid plans?

One of the biggest differences between a prepaid and a more traditional plan is when you pay. Spending money on 12 months' worth of service means a big bill upfront. I pay $638 for two of these plans, one for me and one for my wife, on my credit card once every year.

Also, some people may need more high-speed data than I get. The average American uses 34GB of monthly data (including wifi and cellular). I often connect to wifi, so it's rare that I run out of high-speed data, but it has happened.

You can check your data usage by logging into your plan's online account. That'll give you an idea of how much cellular data you use, and you can then decide which type of prepaid plan works for you.

It also helps to already have your own device for a plan like this. I usually buy used or refurbished iPhones, which helps me avoid a monthly device bill.

An easy way to save big every month

AT&T isn't the only company that offers inexpensive phone plans, of course. For example, Mint Mobile, which T-Mobile recently purchased, has smartphone plans that start at just $15 per month.

If you're trying to get your personal finances in order and need to find ways to save money every month, switching to a lower-cost phone plan may be what you need. I've saved a few thousand dollars, compared to the cost of traditional plans, over just a few years.

One of the best ways to boost savings is to make simple changes to your finances that automatically save you money -- and this is one of the simplest out there.