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The simple way to pocket an extra $1,080 per year

The easy way to pocket an extra $1,080 per year. Source: Getty

Australians are losing anywhere between $120 and $1,080 per year through expensive mobile phone plans, new research reveals.

A Finder survey found around 6 million Aussies fork out over $40 a month for SIM-only phone plans instead of switching to a cheaper one, which equates to around $669 million in potential savings lost nationally.

But there’s an easy fix: switch to a prepaid plan.

Finder tech expert Angus Kidman says while there are some good deals in the post-paid space, competition within the telco industry has led to better offers on prepaid plans.

“Prepaid plans have taken great strides forward over the past decade,” Kidman said.

“Gone are the days of heading in-store to purchase credit. You can now recharge online and register for auto top-ups.”

And prepaid plans aren’t just more convenient, they’re also better value, with some plans setting customers back just $30 per month for a whopping 30GB of monthly data.

What should I look for in a prepaid plan?

There are a few things you need to check for when you’re opting for a prepaid plan, according to Finder.

Always check the expiry period: “Recharge expiries typically range between 28 to 31 days, but some can last as long as 365 days. Cheaper plans generally have a shorter expiry period."

Opt for a data rollover pack: “Some telcos will allow you to rollover any unused data at the end of the expiry period, but others adopt a ‘use it or lose it’ approach. Make sure you’re across this before signing up.”

But look for calls and texts too: “This is a fairly standard feature across the board, but some telcos also offer unlimited standard calls to select countries.”

Planning on picking up an iPhone 11?

If you’re planning on going for an iPhone 11, Kidman says you should opt to pay upfront for it.

“There are plenty of great phones on the market for $400 or less, but if you have your heart set on the new iPhone, you’ll get considerably better value for money if you buy it outright,” Kidman said.

“The $1,200 price tag may seem steep when you’re paying upfront, but you’ll generally get more international minutes and data in the long run if you can sign up to a SIM-only prepaid plan.

“By avoiding a lock-in contract, you can score as much as six times the data and save more than $400 over two years. You’ll also be able to plan hop as better offers come to market.”

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Yahoo Finance’s All Markets Summit is on the 26th of September 2019 at the Shangri-La, Sydney. Source: Supplied