The very first step my husband and I have taken in simplifying our lives and cutting down expenses has been to get rid of our cell phone service. We were paying over $100 per month and it wasn't necessary. Neither my husband nor I use the web on our phones even though they had the capability. All we want to do is talk and text.
So, we terminated service with our cell carrier. Then, we purchased a Magic Jack and bought a $10 home phone. We also bought new cell phones ($40 each) and pre-paid phone cards. Our new home phone service will cost us $20 per year and our new cell service is estimated to cost $40 per month for both phones. This is a total savings of $820 per year (minus the initial start up costs of new phones & the Magic Jack). Wow, I can totally think of better things to do with $820 than spend it on phone service. In five years, we will have saved $4100 and we aren't sacrificing anything. This was a very easy first step.