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Upon taking over the head coaching role of the Cash Accumulators I have decided to change the existing team strategy with regards to the way mobile device operations are conducted. The previous team strategy for mobile device operations was to generate initial cash savings when purchasing a mobile device by signing a two year contract. This resulted in initial cash savings due to the reduced purchase price of the mobile device but led to numerous disadvantages throughout the term of the contract. The revised team strategy going forward will be to buyout the remainder of the existing mobile device contract or upon purchasing a new mobile device buy the mobile phone outright and participate in the bring your own device plan (BYOD) that most carriers offers.
This revised team strategy should provide the Cash Accumulators with the following benefits:
– It will increase our bargaining power because when you buy your phone outright you are free of the ball and chain relationship towards the mobile device carrier that a contract naturally implies. At any time the company changes to undesirable service plans or you become unsatisfied with the customer service you are receiving from the company, you can easily change service providers. Upon implementing this revised strategy for the Cash Accumulators I have found that the customer service experience has been much more pleasurable as they are aware of the fact that you are able to switch carrier providers at any time if desired.
– The biggest advantage for the Cash Accumulators and what enabled us to save $720 a year was that once the contract was bought out and we owned the mobile device we had the ability to select better plans at a lower cost. These plans are cheaper then what was previously available when we were still under the restrictions imposed by the two year contract. Along with increased options on offered plans we were also granted a 10% discount on the selected monthly plan for now owning our own device and participating in the (BYOD) program.
How This Revised Strategy Saved $720/yr.
Before implementing the revised team strategy for mobile device operations the best plans available for the mobile device was $85/month. The $85/month plan had about one 1GB of data and various calling features. The next step up in the plan included roughly double the available data and more generous calling features for $120/month. We were averaging around $120/month for our mobile device operations consistently. Once implementing the revised team strategy and buying the mobile phone outright we had access to very similar features as the $120/month plan for $70/month with a 10% discount which works out to $63/month. Paying $63 a month for the mobile device results in roughly $60/month or $720/year in savings for the Cash Accumulators.
The Significance Of Saving $720/yr.
The significance of this revised team strategy for the Cash Accumulators on the resulting cash savings is that it enables us to invest more cash into the Cash Accumulators to increase their skill set. This increased skill set will increase the amount of dividends they are able to generate. Implementing this strategy also reduces the passive income required to cover the daily operational expenses as the annual expenses are reduced by $720. Implementing revised team strategies like these will result in additional cash able to be invested into the Cash Accumulators which will continually get us closer to beating the FI Lifestylers and winning the FI Cup. With investing the extra $60/month at a 5% rate of return over 4 years it will be worth $3,181. This $3,181 with a 3% dividend yield will generate an additional $95 in annual dividend income. To generate that same $720 a year in passive income with a similar 3% yield as used in the example above would require the Cash Accumulators to increase their skill set value by $24,000.
How do you conduct your mobile device operations? Do you have a better monthly plan then the Cash Accumulators?
Mr. Captain Cash
Leading the way to financial independence
The post Team Strategy Update: Skip Contract, Buy Phone, Save $700/yr appeared first on Mr. Captain Cash.