Do not buy warranties

Warranties fall into the category of spending extra money on a future event that is not guaranteed to occur, which should always be avoided. Warranties may seem like a good idea at the time, but are often limited and do not cover 100% of repair costs. They usually have a catch that makes them worth less than the paper on which they are printed. Labor may not be included, which could constitute a large majority of the repair fees. For items that are frequently updated, such as electronics, it might end up being cheaper to buy a newer replacement than to repair an old model. It is not worth the added expense unless the warranty is covering an item that would be extremely costly or irreplaceable.