'Real Money' Investigates Overspending on Cellphone Bills

ABC News' Paula Faris on the real money you can be saving on your monthly bill.
2:47 | 01/14/13

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Transcript for 'Real Money' Investigates Overspending on Cellphone Bills
You may want to pay attention to this headline on the family budget tonight. Even as americans cut back on dining out and shopping, we are all spending more and more on cell phone bills. And $52 billion of that spending is waste, unnecessary. So, tonight, abc's paula faris shows us how to change that, and it means saving real money. Hi! Hey, daddy. Reporter: Bill doesn't see his two young daughters nearly enough. The divorced dad splits their time with his ex, so, they told us cell phones are the next best thing. I love you. Love you, too, dad. Reporter: So, who here has a cell phone? Bill is paying for three phones, including his mom and oldest daughter, reagan. How much is your bill? 311 right now. Reporter: Do you think you're paying too much? I think about what most people pay for their car and that's what I pay for my cell phone bill. Reporter: A bill that's weighed down by the extras like texting and data. How much are you instagraming, tweetie? Every two hours. Reporter: And you look like you are probably texting all the time, right? Oh, yeah, sure. Reporter: We're going to cut down bill's cost without cutting down on his family time. When ill see this bill, I'm not happy about it. Reporter: Enter our insider, todd dunphy. For years, he worked with verizon, but he left to help families wipe out what he calls wireless waste. So, here's how bill can shrink his bill. Tip one, let free webassignments figure it out for you. On todd's site, you can make sure your plan is a perfect fit. Just plug in your phone number. We look at all the usage and then we compare it to what's available. Reporter:WAS ONLY USING 2.5 gigs a month. By bundling, he could save big. Nearly $1,200 a year. Holy -- Reporter: Tip two, look for sneaky charges, things like roadside assistance and 411. This is an interesting charge for $2. Reporter: Tip three, get your discount. Tens of thousands of companies work with cell phone carriers to get their employees discounts. You have to it. Now, company's bought by ibm, they have a 23%, 24% discount. Reporter: That's $200 a year, simply typing in his work e-mail address. Now, all that's left is switching plans. Watch him put his tips to the test. I think I'm going to go with the six gig plan. That's not going to extend my contract. No, it won't. Reporter: But it will put $1,368 back in his pocket this year. And that's real money! Reporter: Paula faris, abc news, massachusetts. And still ahead right here

This transcript has been automatically generated and may not be 100% accurate.

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