This type of savings is not included in the emergency fund. Oh I guess you could do that but I think it is easier to have a separate account set up for those bills that are due yearly. Take for example our termite protection plan aka Terminix. The county in which we reside is one the worst for termite damage. UGH!!! So we always kept the plan. For years I paid quarterly then about 2 years ago I realized that if I paid for the year I could save 10%. That added up to be $32. So I paid the year upfront. Well then last year they stopped having the quarterly plan so now I am putting a set amount aside each month and will have it fully funded when it rolls around again in August.
I have a vacation fund set up similarly. I put an amount in each pay period and that way we can at least spend a few days at the beach, or Amish country or sometimes in Williamsburg.
Just a week or so past I set up two more accounts: one for car repairs and the other I am still trying to figure that one out.
Do you lump all of your savings in one account or have separates ones like we do?