Budgeting is hard at the best of times, and as a student it is harder still. The cheap drinks night and the takeaway pizza are always calling, and sometimes the student loan simply does not stretch as far as you would like.
If you are renting a student house and still have a pile of essential books to buy, your finances get thin very quickly. So it makes sense to look at everything you are paying for and cut your regular outgoings to the minimum.
Ways to save
Do you really need that subscription? Do you go to the gym often enough to justify the membership? Are you paying for branded groceries when the supermarket's own brand is just as good? And, the subject of this post, is there money to be saved on your mobile phone plan?
Think twice before upgrading
If your smartphone still works well, ask whether it is really worth getting a new one by renewing your contract or switching provider. When you upgrade on a contract you may pay an upfront fee for the new handset and then a higher monthly bill on top.
Know what you are paying for
A typical phone contract is made up of two parts: the calls, texts and data you use, and repayments on the handset itself. That handset part can easily add £10 to £20 a month to your bill, often for a few extra features you could happily live without.
To avoid that, look at a SIM-only plan. You keep your current phone and pay only for the airtime and data you actually need, which can mean a much lower monthly bill.
The benefits of SIM-only
- Lower bills. You stop paying for a handset you already own.
- No migration hassle. You do not have to move your photos, apps and data to a new phone.
- Keep your number. Your number can be transferred to the new network on request.
- Flexibility. Many SIM-only deals run month to month, so you can switch when a better offer comes along.
It is surprising how much money slips away without anyone noticing. Before you sign anything, look at your current contract, work out how much you pay each month and what you originally paid for the phone. You may find you are paying far more for the handset than it is worth, or that the same model is available second-hand for much less.
Do not rush into a new contract. Compare your options first; it could save you a couple of hundred pounds over the life of the deal.
Update (October 2026): eSIMs now make switching networks even easier: on most recent phones you can move to a SIM-only plan without waiting for a card in the post. Refurbished and second-hand phones from reputable sellers, with a warranty, are a good way to upgrade without a contract. And check whether your network offers a student discount or a data-only plan if most of your calls go over Wi-Fi apps anyway.
Where the savings should go
Savings only count if you do something with them. A good student budget has a line for fixed costs (rent, bills, phone), one for food and essentials, a small one for savings, and one for fun: nights out, gigs, the occasional poker night with friends or a trip somewhere. Deciding those amounts in advance is what stops the fun line eating the rent. We show how to set that up, with real numbers, in budgeting your entertainment money, from casino night to a Vegas spring break.