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"The cocaine they had purchased turned out to be innocuous. They got ripped off."
"Barry says the value of Mr Packer's assets dropped by $4 billion at the depth of the global financial crisis, prompting him to withdraw from public view, take up smoking, put on weight, and become depressed."
Thus, while extended warranties were once reserved for high dollar purchases, many retailers have started pushing them for relatively minor items, as well. And why wouldn’t they? They’re practically printing money.
In most cases, however, you’re only paying for marginal coverage when you buy an extended warranty. Consider the case of a gadget with a one year manufacturer’s warranty. You can easily extend that to two years by using the right credit card.
Thus, the three year warranty that you’re being offered is essentially a bet that your purchase will break between 24-36 months after you purchase it. And guess what? Even if it happens, you can probably get something far better (and cheaper) by then.
Instead of buying warranty after warranty, why not create an “extended warranty fund.” In other words, whenever a retailer offers you an extended warranty, simply transfer that amount of money into a dedicated savings account.
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