1. Credit card payment insurance
For a monthly fee, many credit card companies offer an optional insurance policy: theyâll cover your payments if you become disabled or unemployed. Financial advisors explain that most of these programs are rife with complex rules and restrictions, and recommend using the money you would have spent on insurance to pay down your balance instead.
2. Premium gas
You may think that filling your tank
with premium rather than regular will help your car run better and longer, but according to Car and Driver
magazine, youâd be wrong. A recent study by the magazine revealed that high-octane gasoline had no effect, except on ultra-high performance vehicles.
3. Unlimited cell-phone minutes
You may think you need a cell phone plan with unlimited minutes, so you have the freedom to talk as much as you like without incurring extra fees. But most people donât exceed the number of minutes offered in even the least expensive plans from most carriers (about 700 per month for a family plan). Check your usage amount on bills for the past several months before choosing a pricier plan.
4. Automobile service warranties
The manufacturer warranty you get when you purchase or lease your car is legit. The one youâre offered via a postcard in the mail, in all likelihood, is not. According to an investigation by the Better Business Bureau of St. Louis (home to several warranty companies), nearly $3 million in repairs that should have been covered according to contracts were not. Whatâs more, over 90% of those who purchased such insurance found the process to be "misleading or improper."
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5. Bottled water
Contrary to what most bottled water producers would like you to think
, much of what theyâre bottling came straight from a tap rather than a spring or well. Using a water filter will give you similar results for a fraction of the price. Itâs also kinder to the planet -- most plastic water bottles end up in landfills, rather than at recycling facilities.
6. Lottery Tickets
Yes, $10 million probably will make your life wonderful, but almost anything is more likely to happen than you winning the lottery. The chance of winning most big-ticket lottery jackpots is well over 100 million to one.