10 Bills and Expenses You Can Pay Annually (Instead of Monthly) and Save Big

When it comes to building a budget, most of us think on a month-to-month basis. But in some cases, paying one time for an entire year of services or obligations can earn you a discount.

If you want to avoid wasting money, here are some common bills to consider paying annually — rather than monthly — in order to save the most money.

Many car insurance companies allow you to pay this bill on an annual or monthly basis. If you opt to make an annual payment, it might net you bigger savings.

Since car insurance is expensive and can represent a significant portion of any budget, this discount can really help you get ahead financially.

You’ll often pay more for streaming services when you opt for a monthly payment plan. Those who can pay the annual cost upfront often earn a lower rate overall.

For example, at Hulu, an ad-supported plan is $9.99 per month. Or, you can pay $99.99 per year, which represents a savings of around $20 compared to the monthly rate.

Paying annually can save you cash for many other subscription services, including magazines, gyms, coffee clubs, retailers, and more.

For example, Amazon Prime costs $14.99 per month, but you'll save on that price if you pay $139 for an annual membership.

If you own a home, you likely have to pay property taxes. Although some mortgage servicers divide your property tax bill into monthly amounts and add them to your mortgage payment, you often can choose to pay the full amount of these taxes on an annual basis.

Some local governments charge a fee for each monthly payment you make. While the fee might seem small, it can add up if you pay it 12 times within one year. In order to avoid these extra costs, consider paying property taxes once per year.

Many households pay for software licenses. Although you can pay monthly, you’ll often find savings when you pay for the entire year at once.

For example, let’s say you purchase the design program Canva Pro. You can pay $15 per month, but you will save 16% if you opt for the $120 annual payment.

As with car insurance, homeowners insurance coverage is a significant cost for many households.

Thankfully, many insurers will give you a break if you pay premiums annually. This price break is usually modest — maybe 5% or less of your bill. But every bit helps.

If you have a life insurance policy, you can pay the premium on an annual basis to potentially save money.

Policygenius says this often results in a savings of about 5%, which is significant when you consider the high cost of this type of coverage.

Some schools offer a discount to families who pay for the year’s tuition upfront. Tuition discounts may be available at any level, from preschool costs all the way to college tuition.

If you aren’t sure which discount opportunities are available, reach out to the school’s business office to get the information you need.

If you pay for a home security system on a monthly basis, switching to an annual plan might come with a discount attached. This could allow you to protect your home and valuables at a lower price point.

If you’ve purchased a home maintenance contract for your home — such as for your heating and cooling system, or pest control service — paying for the year upfront can often lead to savings.

Sometimes, information about potential savings is available on your statement. In other cases, you’ll need to call the company to ask about an annual payment discount.

Paying on an annual basis offers a smart way to save money on many ongoing bills. Don’t be afraid to get creative when it comes to shaving down your expenses.

If you can afford to transition into an annual payment option for multiple bills, the savings can add up over time. So, reach out to your providers today to find if you can save by making one payment annually.