Do the math on warranties.
Add up the money for all the warranties you are offered – on your automobiles, home, television, video game systems, cell phones, other electronics, refrigerator, oven, couches, washer, dryer, etc. Is it more or less then what you would pay out of pocket if one or two of those items broke? What if you just waited to use credit or savings instead of buying twenty warranties? Will the item be worth anything in a few years anyway? What does the warranty cover? I do buy the occasional warranty, and there have been times when it was worth it. There have been many more times though when I feel like I just threw money away on something I never used.
***Warranties are NOT the same as insurance! It is important – and often the law – to carry many types of insurance, including medical, dental, vision, home, and automobile insurance.***