Create Positive Spending


Kevin Smith // May 15  
Pre-Existing Condition

One of the biggest contributors to negative spending are warranties.  The moment you give money to anyone, especially a warranty company you are putting them in control over the spending of your money.  

When I purchased a home the prior owner included a home warranty.  Had they not already purchased it I would have offered them a different option that would have been more attractive to me as a buyer.  When I tried to make a claim for an appliance the company screamed PRE-EXISTING.  I told them that everything is pre-existing and they had no basis for not owning up to their commitment.  I eventually had to get my attorney involved and no sooner they received a letter from my attorney that they were all too eager to meet my every demand.

Warranty companies like to use testimonials in their marketing to lure you to use them.  Nothing else would attract you to them.  Testimonials may be legitimate about how they saved their clients thousands of dollars.  In reality you end up spending that money one way or the other.  They focus on what is called time value of money.  Money today is worth more than money tomorrow.  You need the money now and they provide it.  You already paid them a portion of the money to meet an immediate need and you will continue to pay them after the need is met.  They are exploiting your fear to meet a future need that may never happen.  In the end you pay out more money to them than if you paid it yourself.  They hope you forget about that small monthly payment that offers you a sense of false security.

Also, keep in mind that you put them in the drivers seat to decide on how your money is spent on potential warranty related needs.  They have it in writing that they are not required to pay for any repair if they so choose.  They hide it under the words Pre-Existing.  If they paid out one smaller claim to you, then a future larger claim might have stronger support for their pre-existing claim to not pay.

Warranty Savings

Creating Your Own Warranty

The best defense you have against the need for a warranty of any kind is to create your own warranty.  Warranty companies operate on the basis of collecting money they hope to either never pay out or marginally pay out.  When you create your own warranty they cannot prey on your fears and take control over your hard earned money.

Warranties are nothing more than another savings bucket.  The next time you make a purchase and a warranty is offered spend that money into one of your savings bucket.  Avoid giving the power to someone else to decide if they want to spend money on your warranty related need.  There is greater security when you are in control of the decisions around your money.  You always win regardless if you need to make a claim on your savings for a "warranty related" need.

Kevin Smith is a resources on many money saving tips.  He consults with his clients in the creation of their money path.  He will guide you through the recovery of money slipping through the cracks.  Contact Kevin Smith TODAY and begin your path to financial recovery.

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