Renew or New?

That is really the question.  My family is trying to save for a house.  The market is ripe for the picking to purchase a house, but don't consider it without at least a 5-10% down payment.  Insert gasp here, because we are one income household.  Not that I would trade being able to stay at home with my children for anything.  Although stretching a dollar has become more of a competetive sport for me these days.  Here is where the renew or new part comes in. 

I am a loyal AT&T customer and have been very happy with their service.  I currently own an iPhone 3 which my husband owned prior to me and it is really on its last leg.  The port that you plug in a headphone device works only intermitendely.  The phone itself has to be shut down manually every other day because it just can't seem to handle all of the apps that I would like to have on it.  I have had to take off 80% of my apps because of low memory space.  So I would really like to have another and my renewal date is coming up.  Since the delay of the new iPhone 5 has been put off until the falll, I can purchase the iPhone 4, for around $150.  Or might even be able to purchase an iPhone 3gs for $50.  Then you include in the data, which I have the smaller plan for $15 and then text messaging which I now pay $10 a month for that.  Just to recap, I am paying $30 with data and texting, and since I am on my husband's plan my minutes share with his are only an extra $10 a month.  So we are up to $40 a month for just me, in addition to the cost of purchasing a new phone. 

My dillema is, should I get another phone, or iPhone for that matter if I am trying to save for a house?  I cringe everytime our cell bill comes in because my husband also has an iPhone and a data plan.  There has got to be a better way.  I rarely ever even use my cell phone minutes.  I use my texting A LOT and I use my data basically, when I am at home and then can use my wireless.  So maybe I should just save my money and get a regular phone with texting from another company.   If I am missing my Words with Friends, or Hanging with Friends, I could always get an iPod.  Mmmm, decisions, decisions.

Ultimately, aren't we starting to use our phones for more than just making a phone call?  I use my phone to tell me where the cheapest gas prices are, check prices online, check mail, play games, play games, play games.  Hey - I think I am using my phone mostly to play game!  WHAT?!?

Any comments?