Money

Three Ways In Which We Unnecessary Spend Money

At first glance, extended warranties and cell phone apps appear to have little if anything in common.  However, they have at least one thing that they share—the fact that they are two areas in which most Americans unnecessarily spend millions if not billions of dollars of their hard-earned money each year.  Let’s take a look at why they are such a waste, along with another common culprit.

Image: Leica Microsystems

Extended Warranties

According to studies conducted with the buying public, the one pet peeve that is most mentioned is that of the extended warranty of service contracts.  I mean, who doesn’t love it when the cashier looks at you, with the most serious face, and asks if you would like the $39.95 one year warranty extension—on an item that only costs $150 to even begin with.  Seriously?  Even so, retailers of electronics are raking in the dough and making an excellent side fortune with those constantly offered contracts for an extended warranty.

Apps And Extras On Cell Phones

Most cell phone users are not aware that most of what you need to get done on your cell phone, you can find a free app for somewhere.  It may not have all the bells and whistles that the paid version does, but it will more than be able to get the job done.  For example, there are several choices for ringtones pre-installed on your phone, as well as free ones as well.  As such, there is really no reason to shell out your money and pay for them.  Here’s a news flash—your phone will indeed still ring, even if you haven’t paid for that oh so fancy ringtone!

Image: AutoSlash

Insurance On Car Rentals

One expense that is almost always unnecessary is that of the extra coverage involved in the renting of a car.  More likely than not, your current car insurance already covers you, and in many cases, the very credit card you use to book the rental may even offer protection on the car rental.  For example, Discover Credit Cards provide 25,000 of secondary damage due to collision when used for your car rental.  To take advantage of the coverage, you must decline the rental agency’s insurance when renting the vehicle.