Tuesday, 20 February 2018

Paying upfront vs Paying monthly

Saving money on monthly bills
In my making the switch post, I briefly touched on paying for bills/insurance etc up front vs paying monthly. I'm aware that not everyone is in a position to pay for things upfront but it's what works best for us with certain bills. We prefer to take a hit one month then not have to worry about it for another year. Also if you can pay up front you usually end up saving more money. I know it seems unfair but when you add up the monthly costs they usually total more than paying up front.

We currently pay our home insurance, TV license and internet in full which only leaves our mortgage, utilities and council tax going out monthly, our pet insurance goes out monthly too but it's such a small amount that it's hardly worth mentioning. Out of the things we've paid for outright, there's only the TV license where we haven't made a saving by paying in full.

For us it's easy to get as much stuff out of the way and have a clearer view of our monthly budget than having lots of separate things going out each month. It also means that we can easily plan for the month where everything is up for renewal and start shopping around, getting quotes lined up and building up our joint account ready to renew all our bills and insurance.

Comparison websites will often have the option to view the price for paying monthly and the price for paying upfront for the whole year. The actual company sites for whatever it is your purchasing also often have this option which makes it super easy to see exactly how much you'd be saving. 

If you're in a position to do so, I cannot recommend paying upfront enough especially when there's the opportunity to save money too. 
SHARE:

No comments

Post a Comment

Thanks for your lovely comments!

BLOGGER THEME CREATED BY pipdig