Keeping an eye on how you spend and save your money can nearly feel like a full time job for most of us. I always appreciate high quality money saving tips. They always come in handy. Recently, The Huffington Post released an interesting article about how to save money in places you commonly wouldn’t consider. Keep in mind, there is plenty of money to save if you just maintain a watchful eye and careful record keeping of all of your expenses.
The Huffington Post article included tips on how to save money. These tips include discounts on large purchases such as cars or homes. The writer explains that so many of us clip coupons in an effort to save in grocery stores. However, we offten don’t consider the fact that we should move to a cheaper home or downsize our expensive monthly car payment with a more manageable, used car.
One of the tips in the article that really hit home for me was the section regarding insurance and extended warranties.
The article continues on to say, “An old saying passing its way through my family is that you should insure yourself for things that would bankrupt you. Would it bankrupt you if you totaled that 2000 Corolla? If you didn’t get an extended warranty on your fridge and it were to break, just how destitute would you be after paying $700 for a new one? (And yes, $700 really does buy you a decent fridge in the US, much larger than the family of 5 I grew up in ever had when I was a kid.)”
The writer of the post’s article suggests that extended warranties nearly always prove to be a scam. I have to agree. Most likely, you can afford to replace a computer, refrigerators or the washer and dryer without the warranty, if worst comes to worst. In some instances, buying a used appliance or gadget to replace the broken new model is cheaper than the actual warranty. Keep in mind, many credit card companies, such as American Express, actually offer their own comprehensive warranty coverage for free when you make purchase using their card.
Don’t forget to shop around each year for different insurance plans: home, automobile, etc. You should also shop around for the best price on other household expenses such as cable service provider. Typically, if you call these companies and threaten to cancel your coverage with them, they will do whatever it takes to keep you as a customer. That usually includes lowering your payments, giving you more perks or rewards or even higher quality service.