savings

5 ways to beat the payroll tax increase

Skip the warranties
Skip the warranties © Andrii Kondiuk/Shutterstock.com

Purchase almost anything -- electronics, toys, sports equipment -- and you'll often be asked if you'd like to pay a small additional fee for a product warranty. Most likely, you'd be better off keeping those extra dollars in your pocket than to spend them on warranties you'll likely never need, says Andrew Housser, co-CEO of Freedom Financial Network in San Francisco.

Consumers spend billions on extended warranties every year, Housser says. "But, the odds of needing a protection plan are slim. Warranties make the most sense for high-priced items like a washer and dryer or a plasma television," he says.

"With technological advancements, it is highly likely that the computerized devices that you purchase today will be obsolete by the time you need the warranty. Instead, set aside what you might have spent in a savings account to cover emergencies like appliance repairs down the road," Housser says.

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