Every month we all pay bills. It’s an automated part of our routine. But not all bills have to be paid monthly. Some can actually save you money, reduce stress and help you stay organized by handling them on an annual basis.
I was talking to a bunch of financial advisors and accountants and they came up with 10 bills you should almost always pay once a year. It’s cheaper and often much more convenient. If you’re looking to simplify your budget, this advice will help.
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Homeowners association (HOA) fees
HOA fees often go towards landscaping, pool maintenance, or community security, for example. Many HOAs charge monthly dues, but some will allow you to pay annually. If your HOA charges $200/month, for example, the annual payment would be $2,400. Your community may offer you a $50–$100 discount for paying for the entire year up front.
Paying in a lump sum once a year means you don’t have to remember 12 individual payments, your bank statements are cleaner, and you can see exactly how much you pay on your home for that year.
Car registration and licensing
Many drivers renew their car registration each year. However, some states allow monthly proration. Opting for a year’s payment prevents missing a month and getting a late charge. It can also help you better understand your transportation expenses.
Professional licenses or certifications
Teachers, nurses, real estate agents, or even accountants often need to renew a professional license. Pay for the entire year in one go to avoid having your license lapse for a month. You also avoid that small reminder popping up on your bank statements. And of course, late fees in case you forget to pay on time. It’ll be better knowing your license is active for the next 365 days.
Storage unit rentals
Renting storage units often gives you the option to pay by the month, but paying by the year can often be cheaper. It also means that you only have to login to your account once a year, which can be a nice time saver. Storage facilities often give you a better rate for year long leases, so it means you’ll pay less overall. A lot of the time, a year long storage rental will be about 10% cheaper than a monthly one.
Pet health plans or vaccination packages
Many vet offices offer annual pet plans that cover all of your dog or cat’s vaccinations, annual physicals, flea/tick preventatives, and often even teeth cleanings. A 1-year plan for a medium sized dog, for example, may cost $400–$500 and provide all the medicine and services needed for preventive care.
Paying once a year can be less expensive than paying per visit, and you also won’t have to remember when your pet is due for a vaccine or checkup. It’s all planned out for the year, which is much more convenient and helps keep your pet in optimal health.
Private school fees
Private schools often let you break your tuition payments up into monthly installments. But if you pay for a year in one payment, you often get a discount. You also have one less payment to have to move money for each month. It also keeps the accounting side of things easier for your family.
Software licenses for small businesses
A lot of software licenses and business related services can be paid on a monthly subscription model. If a year-long agreement is offered, it will typically save the company some money. It can be less hassle overall, since you won’t have to worry about recurring payments slipping through the cracks. It also can be easier for a small business to budget for.
Club or gym memberships
Many clubs and gyms offer the option to pay monthly or annually. If you can afford to pay upfront, you may even get a discount or bonus perks. Pay once a year and then forget about it until renewal time.
Property or equipment insurance
If you rent out a home or own specialized equipment (cameras, drones, medical machinery, etc. ), you will typically need to carry insurance on it. While you can pay month to month, you will often receive a slight discount by paying for an entire year. As an example, a 1-year insurance policy for a rental property might save you $50–$100 versus paying monthly.
Seasonal subscriptions
Some clubs (gardening clubs, specialty magazines, seasonal recreational memberships) are billed on a monthly basis. Paying for the entire year saves you money overall. It eliminates the little tasks and allows you to enjoy the service throughout the year without having to worry about when the next payment is due.
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