Several years ago, we moved our telephone service to Vonage – a phone service that requires broadband internet. It was great! Monthly charge, including taxes, came to about $31 instead of the $46 or so we were paying. Even better, there were no long distance charges to anywhere in America and other places that we never called. The only downside to using Vonage was when the internet was down, the telephone was down too, and we ended up using our cell phones during those times. Even so, we enjoyed the savings of $15 a month. Annual Cost: $372; Annual Savings: $180

Last year, we took an even more drastic step – we decided to give MagicJack a spin, and found we can save a whole lot more! Our initial cost? About $40, which includes an entire year of phone service. After the first year, it’s just $20 a year. That’s right! $20 a year. Our annual savings over Vonage is $352. Of course, like Vonage, there are no long distance charges for anywhere in America. WOW! Downside? Same thing as Vonage, you must have broadband internet service. Another downside is that you cannot keep your old telephone number, but that’s a small price to pay to save $352 a year. Of course, if you’re still using the old-style landlines AND paying for internet services above that elsewhere, the savings is substantially greater.

Even with the savings with MagicJack, we finally concluded that it was completely unnecessary because we both have cell phones, and simply have no need for any other phone service.

Check Penny Wise! frequently, as we will add to and/or change information as often as possible. Also, please send any money-saving tips you have so we can share them with our readers.