Should You Pay For a Warranty?

When you buy an item and the store offers an extended warranty should you get it?

No and yes.

Here's what to do instead.

Take the price of the warranty they are offering and divide it out. Then you can set that much aside each month in your savings. If something goes wrong, you'll have the extra money and if nothing ever goes wrong, you'll get to keep all of that money.

Companies won't give you more money out of a warranty than they take in. They use them mostly as a means to make extra money.

This is also good because:

You may find you don't like the item after a month or 2 and don't use it often.

You may decide if it breaks that you want to get something different.

Having the money in your own account will give you these choices.

So if you're worried that your item may break, pay the money to yourself each month and you'll always be the one in control of where it goes.