The 5 things everyone must consider before signing up to a phone plan

It's safe to say that the monthly budget of every single household in Australia features the cost of at least one mobile service, possibly more than one. Given that, it's also the one area that is perhaps the most competitive and offers the best chance for you to save some money, month after month after month.

Critically, there's far more than just price or the data limit to consider, so here's a bunch of things you should be thinking about before you even begin your search for a new mobile plan.

NOTE: Prices are accurate at time of publishing.

Coverage and network

Australia has three 'networks' – companies that actually build mobile towers and can give you coverage. They are Telstra, Optus and TPG Telecom (Vodafone).

Each of them also on-sells their network to many other brands, so the first thing you need to do is ask yourself "Does the network I'm on matter?"

If you spend the majority of your time in the major cities, then the network simply won't matter. But many people living in our most remote and regional areas do tend to seek out deals with Telstra.

A third-party carrier using the Telstra network will not have the exact coverage of Telstra, they use what Telstra calls "part of" the Telstra network.

Again, you would barely notice the difference, but it's important to know. The only exception is Boost Mobile which does use the full Telstra Network.

Think about the coverage at your home, at your work and at the most regular places you visit.

If you don't know how the coverage is, ask your workmates or neighbours. Or, take the time to get a SIM card from another network and use it for just a short few days as a test – this can cost as little as $5 to get a SIM card to test.

Your usage

Outside of the coverage you need, your own personal usage is a critical factor in determining if you can get the best value from a mobile plan.

Before you even think about searching for a new plan, get hold of your usage from the last three months. Ask your existing telco, look for bills or check their app.

Find out: How many calls did I make? How many messages did I send? And most importantly, how much data did I use?

Get that data usage figure and average it out from the last few months.

Now you know what you're looking for. Sure, there are many, many unlimited call and text plans, but it could be you don't need that.

Critically, if you're only using 11GB of data per month, why would you sign up for a plan with 200GB included?

Data allowance

Most mobile plans are sold around their data inclusions, mainly because of the unlimited nature of calls and text messages within the majority of mobile plans.

However, there's also a smoke and mirrors that goes on with data allowances to make you feel like going for the 100GB plan instead of the 50GB plan because it's "only $5 more" for example, is actually a smart move and a win for you on value.

Remember though, you got to this point by working out how much data you needed – so stay strong to that notion and buy only what you need.

There's no point buying two dozen bananas at the start of the week when you know you only eat three to four every week, and those bananas go off. Data is the same, for the majority of plans, once it's gone, it's gone.

Data rollover is a fantastic concept on some plans, which means unused data is added to your next month's plan. However, the trick here is to have you think that's a good thing.

The problem is, if you didn't use it this month, what's the chance you'll use it all and then some next month? Not much.

Likewise, if you are a low-data user, let's say you use well under 10GB per month, you may find that a plan that is not unlimited calls might offer the best value – be open to anything!

Is this plan for a child?

Your kids will tell you they need lots and lots of data. But as a parent, I can tell you that a teenager running out of data 20 days into a 28-day mobile data plan cycle is going to learn a lesson really fast about managing usage, being responsible about their usage and importantly the actual cost of these services.

If you're 14 and think that spending big and just getting more data is a good thing, your financial responsibility through life might just be skewed by this experience.

Encourage your kids to use Wi-Fi when at home, and wherever possible, to minimise their use of mobile data.

Short-term or long-term

Finally, there are plenty of great plans out there that are month-to-month.

Firstly, check how often the data or plan resets. A 28-day plan needs to be paid for or 'topped up' 13 times per year. While a 30-day expiry plan only needs 12 top-ups.

Once you settle on a great network, and if you're happy with the provider, give strong consideration to looking at 12-month plans.

On these long-term plans, you pay upfront for 12 months but can save huge money compared to those monthly top-ups all accumulated over a year.

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