A mobile phone is an important gadget and companion that nowadays you can’t leave home without. Mobile phones offer a range of functions beyond phone calls and SMS. We are using our mobile phones to send emails, surf the Internet, play music, takes pictures and capture videos.

It’s important to find a mobile phone contract that meets your needs and fits your budget. Here is a guide on how to save money on your mobile phone contract and some of the important things to look out for.

Compare mobile phone deals

Use mobile phone deals comparison websites to search for the right phone and tariff for you. These websites have comparison tools that allow you to search for deals based on; monthly cost, contract length, network and brand of the mobile phone. Enter your usage details to reveal the cheapest tariff and package available.

Assess your needs and wants

Another important step is to understand how you will use the mobile phone, and what functions you want. Will you be using it for sending and receiving email, surfing the internet, text messaging, taking and sending pictures? Where will you be using your mobile phone?

Do you need the latest smartphone? The amount of savings will depend on your choice of model. Top range popular models such as Apple’s iPhone 6 and Samsung’s Galaxy S5 are likely to cost more than older models. If you’re using a smartphone to surf the internet, take photos and capture video, some older models such as iPhone 4 will be sufficient.

Understand your usage

It’s important to determine what is your usage pattern is, in order to find the cheapest tariff to match it. The easiest way to check is to calculate the average over your last 6 months of bills. Check how many minutes of calls, and number of texts you use. If you use your mobile phone to surf the internet, check the amount of data you use. Do you go over the free minutes and texts every month? Are you overpaying for your package, or are you paying fines for over use?

Shop around and negotiate better deals

When it’s time to renew your contract, many people are talked into renewing their contract with the same provider who offers them a new handset, without checking what else is on offer from competitors. Shop around and you may end up saving money. If you want to stay with the same provider, make sure you negotiate for a better deal, and don’t be afraid to ask.

Check coverage

Before signing up with a provider, check out the signal coverage in the areas that you need service. Most mobile phone providers have a website where you can search by areas where you’ll be using your mobile to find out how good the coverage will be. However, these websites are only guides and they don’t provide an exact report of your expected coverage.

Early termination fees

Early termination fees are charged to prevent you from switching providers before a contract ends. Before signing up, find out whether the termination fees are pro-rated. This means if you cancel the contract at a later date, a lower fee will be charged.

Use mobile phone deal comparison websites to shop for an appropriate service plan. Understanding your needs and usage, and finding out the coverage and potential cost, can prepare you and make sure you get the phone, and contract, that suits you.