Stop Paying for Things You Don’t Need

Long-term gym memberships can be a hefty money drain. August_0802/Shutterstock

A big coordinated garage sale in my neighborhood gave me a surprising wake-up call. It’s one thing to see a family’s stuff spread out in the front yard, but quite another to see a whole neighborhood’s castoffs at one time. All I could think as I walked from one yard to the next was all the money wasters that led to this colossal display of stuff—purchased with dollars, now offered for pennies.

Imagine how much cash we'd have right now if we could get a do-over on all the thoughtless purchases we’ve made in our lifetimes.

No. 1: Extended Warranties

Generally, they’re not worth the money. If a new gadget or appliance is going to fail, research tells us it will do so during the manufacturer’s warranty period or long after the extended warranty has expired. That makes extended warranties a huge profit center for retailers and a pretty useless expense for consumers.