Top Money Wasters
Places where your money goes to die
This month's Savings Section isn't about saving at all. It's about waste. But to achieve success in anything, it's best to know your enemies. This month, we identify some of the biggest money potholes in the marketplace:
Exercise Equipment. We're not suggesting that people shouldn't buy exercise equipment. Sure, somebody has bought a stair climber and religiously stuck to it with great benefits. We just haven't met that person. Our suggestion: If you have your eye on a treadmill, wait a month. Start your running program outside. If you stick to it, perhaps the treadmill will be a good value. But be wary of this rationale: If I had the equipment, I would exercise more. You probably won't.
Expensive sunglasses. $125 for sunglasses? Ouch. For most of us, that's one month's savings. The rationale is that sunglasses are one accessory that you wear every day, so spending a lot gets you a lot. The reality is few people really care how good you look in your sunglasses. They are too busy thinking about how good they look in their own sunglasses. Go for a $40 pair.
Service plans/Extended warranties. You're about to ring up the new TV at your electronics mega store and they ask you if you want to add on a 3-year warranty plan for roughly 10% of the sale price. While they sound 
good, these warranty plans aren't a good value. Try this: Walk through your home and look at all your electronics. TV, stereo, coffee maker, blender, computer, printer, washer, dryer, clock radio etc. How many of them are more than three years old? How many of them have ever needed repair within three years? If the answer is one or two items, it's still better to just take your chances than pay extra for everything.
Car options. The next time you buy a car, steer clear of the options. Some, of course, are sensible. Maybe you need an automatic transmission or air conditioning. But, electric seat warmers? Leather seats? Sunroof? These can add thousands to the cost of the car and really do little to improve the driving experience. Sure, you'll get wind in your hair with the sunroof. But, will it be $600 worth of wind? Can't you just roll down the window for wind and put the money in a savings account?
Buying DVDs. Not only do they take up money. They take up space. There's little harm in having Casablanca on DVD. But some people buy them hoping to build a DVD collection. Few people watch them enough to justify the $15-20 purchase. And if they ever got the thousands of DVDs that they envision in their collection, where would they put them? Better to rent them at $4 per and not clutter the house.
