While downloading music from itunes, I now have 1,455 songs but my phone tells me I do not have enought storage for everything and to change my storage plan, I went in and purchased $100 worth of storage and now it tells me I have 55 GB total and available 54.6 GB at the moment. I just went to download more music and it told me again that I do not have enough storage, am I missing something? if I have 54.6 GB of storage what's the deal?
The device has a finite amount of storage space which is somewhat less than the listed capacity (8, 16, 32 or 64GB depending on the specific model phone you got) (the firmware itself takes up some of that capacity). There is nothing you can do to increase this capacity, all you can do is adjust what you have on the phone. As others have already noted, what you grossly overpaid for with that $100 is some kind of online storage which is most likely for backups or streaming.
What you want to do is use Smart Playlists in iTunes to manage what gets cycled on and off your iPhone. I've got over 60GB of music, and a 16GB iPhone that also needs to carry some photos, apps and their data, and still have some space free. Using Smart Playlists (which can be nested, by the way) with set size limits, iTunes automatically moves music onto and off my iPhone according to the last-played date and current ratings of the individual items.
Another way to be able to put more music onto the phone is to set iTunes to re-sample down higher quality tracks that go onto the phone. This does not effect the music on your computer, just the copies on the phone. If a lot of your music is at a sample rate higher than 128kB, you will probably see a significant increase in how much can fit on the phone.