How To Save Money On Your Phone Bill

How does paying $2.95 per month for phone access sound?

If you’re currently paying $30 or more for landline service, then this probably sounds pretty darn good. And, savings like this can add up really fast.

There are plenty of ways to save money on your phone bill using services like Skype or products like the MagicJack. But like anything, there are benefits and drawbacks to using them instead of a landline.

I’ll be looking at both of these money-saving strategies so you can decide if one of them is right for you.

Saving Money With Skype

If you’ve never heard of Skype, here it is: Skype is software that allows you to make calls over the Internet for free.

Basically, you’re making a call to someone else using your Internet connection. It doesn’t go over a phone line at all.

I use Skype all the time, and I really love it. I mainly use it to call international clients for my freelancing business. If I had to rely on a calling card to talk to them, I’d really be forking out the cash. But thanks to Skype, it’s free.

What You Need To Use Skype:

• A computer
• A relatively fast and reliable Internet connection
• A headset, or a computer with a microphone

Skype Benefits

There are several cool things about using Skype:

• You can make free Skype to Skype calls. So, if you and your sister have Skype, this means that when you use your Skype account to call her Skype account, you pay nothing.

• You can talk with video using Skype. I’ve done this, and it’s awesome. This is also free.

• If you want to use Skype to call someone’s landline, the per minute rate is .02 cents. Or, you can make unlimited Skype-to-landline calls for $2.95 per month.

• Making international calls is also incredibly cheap with Skype. Rates differ for each country, but plan on paying around $5.95 per month for unlimited calls, or .03 to .04 cents per minute for “pay as you go”.

• Skype also gives you instant messaging capabilities. Yep, free.

• Skype is a zero-investment service. You download the software for free, and start making Skype-to-Skype calls for free. So, it’s painless to try out.

Drawbacks to Using Skype

There are some downsides to using Skype:

• You need a fast internet connection. If your connection is too slow, then your conversation is going to sound like it’s coming out of an old Speak N’Spell. Or, it’s going to freeze up entirely.

• Even if you do have a fast connection, sometimes Skype gets overloaded with calls, and your call will digitize to such an extent that you can’t understand what the other person is saying. This doesn’t happen that often, but it happens.

• If you rely on Skype for 100% of your phone needs, then be aware that Skype can’t call 911 if you have an emergency. You must have a cell phone for this.

• You can’t roam the house and talk on Skype (unless you cart your laptop with you and have a WiFi connection…). You have to talk on a headset, or through your computer’s microphone.

Last Word on Skype…

Like I said, I’m a fan of Skype because it saves me a ton of money each month on international calls. As a small business owner, Skype offers me benefits that far outweigh the few drawbacks.

And, there are plenty of companies that use Skype for their calls now. The videoconferencing feature has allowed me to see clients that I’d never get to meet face to face, and I’ve had meetings with people from all over the world without ever having to leave my desk.

Yes, the technology is cool. And, it’s definitely a money-saver.

Saving Money With the Magic Jack

Disclaimer here: I have not personally used the Magic Jack. I’ve seen it online, and A and I have been thinking about getting one to try out. So, all this info is just what I was able to discover online.

Magic Jack: What It Is

Magic Jack is a thumb-drive device that you plug into your computer’s USB port. You then plug your telephone jack into the device. Your telephone is now physically connected to your computer.

The Magic Jack is like a bridge that allows you to make calls from your telephone using your Internet service. You can call any number, and you can receive calls at any time.

This means you don’t need land-line phone service at all to make calls.

Benefits of Magic Jack

• Magic Jack allows you to make unlimited calls from your home phone for just under $20 per year. This is cheaper than what many of us are paying per month for this same service.

• Magic Jack is also perfect for travelers. If you take a phone with you (bulky, I know…) you can plug it into your laptop’s Magic Jack and avoid high hotel rates or roaming charges on your cell phone.

• You get a phone number with Magic Jack. If you currently have a phone number, however, you’ll lose it when you switch to Magic Jack.

• You can make 911 calls with Magic Jack. But, you have register with your local 911 service when you get your Magic Jack set up.

• Magic Jack does work with a WiFi signal.

• Magic Jack also gives you call waiting and Caller ID just like a regular phone.

Drawbacks to Magic Jack

• You can’t receive calls if your computer is turned off. They’ll just go straight to voicemail. This, in my book, is a major drawback because it means you need to have your computer on a good part of the day. From an eco-standpoint, that’s not good.

• If you have an old, slow computer, service with the Magic Jack is going to be slow as well. From what I’ve seen from user reviews, newer computers work best for the Magic Jack.

• Tech support from this company seems to be really lousy (again, this comes from user reviews on Amazon).

Magic Jack Media Reviews…

I was impressed at Magic Jack’s list of accolades.

The device has been featured in the New York Times, the Washington Post, The Boston Globe, US News and World Report, and it won PC Magazine’s Editor’s Choice Award for best new product.

Fabulous.

When I looked the MagicJack up on Amazon, however, it got really mixed reviews from users. Some people loved it and thought it worked great. Others were disappointed in the call quality, and said that when they used the Magic Jack no one else in the house could get on the Internet.

So, take all this with a grain of salt. The journalistic reviews I looked up all loved the Magic Jack.

Last Word on the Magic Jack…

This looks like an OK product to me. I can’t ignore the great reviews it got from big names like PC Magazine and CBS News. On the other hand, it’s bit scary to read some of the reviews on Amazon. Some people have had really bad experiences with this product.

I’m still thinking about trying the Magic Jack. We’re going to be moving soon, and this would be a good way to save money on our phone bill, especially since we’re going to be losing our phone number anyway.

Chime In!

Have you used Skype or the Magic Jack? If so, what’s your experience been like?

I’d especially love to find out more on the Magic Jack, since that seems to be the money-saver whose quality is most in question.