The cell phone bill can be one of the highest bills that you pay monthly. I’ve seen some that will even exceed my electricity bill. Not only is this downright outrageous, but it makes you wonder where all that money is really going to. You already spent $400 on a phone, and now you have to spend $200 a month just to keep the thing up and running? Ridiculous.

However, there are a few ways to limit your cell phone bill that are actually within your control. A few great ways to cut your cell phone bill costs include:

Limit Your Data

While everyone wants to be able to stream Netflix while browsing Facebook and making a call, it is hardly necessary. Just because you can perform all these functions at once doesn’t mean you should, or even that you do often. Before you sign a contract, consider how much data and bandwidth you really need. If you discover that you can get buy just fine on a 3G service, avoid the pricey 4G and save yourself $50-$100 a month.

Downgrade the Kids

There is no reason for your 8 year old to have a cell phone, let alone a smartphone (see more here Prepaid Cell Phone). They just don’t need them, and unless they have a savvy understanding of the value of money, they probably don’t understand how each text, each downloaded song or app, or each call costs money – a lot of money. However, older kids – especially those driving – need to have a cell phone for safety. Unfortunately, having 4 people on one plan can be costly.

Instead of giving your kid the newest Android phone with an expensive data plan attached, give them a prepaid cell phone. They will have the cell phone they need to be safe, and you won’t be stuck with an outrageous bill every month because they turned into a texting fiend. They will also get a good lesson in responsibility, and will have to learn how to properly manage their minutes.

Get Insurance

When making the initial $400 purchase to get a smart phone, most people avoid adding any additional costs to this already obscene purchase. However, refusing to pay $10 for insurance can cost you hundreds down the road. If you are offered insurance, buy it. If your cell phone is damaged, lost, or stolen – which happens frequently – you won’t have to pay for a new phone.

Cell phones are a necessity just to function in our modern world. But just because you have to have one doesn’t mean that you have to let it own you or make you phone poor. Be smart about your plan, and about the needs of those on your plan. Cutting a few corners here or there can still get everyone the coverage they need without sending you into the red every month.