Extended warranties are rarely worth it. One reason is the cost versus the benefit. Another is that the
contract usually limits the warranty extensively. Most importantly, do not—I repeat, do not—get sold
an extended warranty by the car dealer, no matter how much pressure the salesperson puts on you.
DON’T BUY PREMIUM GAS FOR YOUR
CAR— IT’S JUST NOT WORTH IT
I’ve owned a BMW, Audi, Acura, and Cadillac, and I never put a drop of premium gas in any of their
engines. These cars all performed well with regular gas, and no damage was done to their engines.
DON’T EVER DO “RENT-TO-OWN”
I am not even going to bother going through the math on this one—not because it’s difficult but
because it doesn’t warrant a lengthy discussion. Bottom line: If you do “rent-to-own,” you can’t
afford the product you’re renting. So don’t rent it!
IT’S OK TO BUY GENERIC
GROCERY/DRUG PRODUCTS, AND
DOING SO SAVES YOU LOTS OF MONEY
A little-known secret is that many of the generic products (aka private label or store brand) are
manufactured by major brand manufacturers. Whenever it makes sense, purchase the generic product.
Amazingly, I have found that the products cost 30 to 50 percent less but taste and perform the same as
their brand counterparts. Your grocery dollars add up. This is another area where I have saved
thousands of dollars over the past thirty years.
BRING YOUR LUNCH TO WORK AS
OFTEN AS POSSIBLE
Don’t do this every day. You will miss out on some networking and coworker bonding opportunities.
However, if you do this two to three times a week, you will save over $500 a year.
DON’T PURCHASE THE FIRST
GENERATION OF A PRODUCT; WAIT
UNTIL THE SECOND, THIRD, OR
Think big-screen TVs. Remember how costly they were when they first came out. You don’t have to
be the first one with everything. Technology improves products and makes the costs lower.
INVEST IN SURGE PROTECTORS FOR
YOUR EXPENSIVE ELECTRONICS
Investing a few dollars will save you thousands of dollars of loss. If you don’t, it is highly likely that
at some point in your life, you will lose an expensive piece of electronic equipment during a storm.