When it comes to paying certain bills, some companies give you the option to either pay a monthly direct debit or pay for the entire year upfront. You’ll often find that the entire year upfront comes with a bit of a discount so today I’m going to break down paying monthly vs paying upfront so you have a better idea of how to get the best deal.
I’ve already covered how switching your bills can save you money and 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 and TV license in full. We used to pay for our internet in full do but our current deal doesn’t allow for that. When it comes to our council tax we pay that across 10 months instead of the whole year which gives us two months of no payments. This leaves our mortgage, utilities and council tax (but only for 10 months going out monthly), our pet insurance and life insurance goes out monthly too but they’re such a small amounts 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. The money saving aspect is also a big deal for us. We’d rather take a hit once and save money overall then end up paying out more just because we’re paying monthly.
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. It goes without saying that if you aren’t in a position to take a bit hit all at once then the right option for you is to pay monthly.
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, it just makes more sense if you are able to do it.
Calling all girl bosses! I’ve created a Facebook group where we can all come together and discuss all things blogging, money saving and everything inbetween. It would be great to see you over there. So to be a part of a super friendly and supportive community, hop on over to Facebook and join us!
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