5 money leaks you need to plug now

economictimes.indiatimes.com:

ET Wealth tells you how to reduce unnecessary expenses that may not be providing any bang for your buck.Extended warranty Several manufacturers of appliances and vehicles offer extended warranties for a price. This is over and above the free, standard warranty that these offer. There is no difference in the service as it is only an extension of your warranty by 2-5 years.THE CATCH: These warranties often come with terms and conditions that make them more problematic than being useful.

For instance, you can get repairs done only by a specific agency or dealership, which may not be convenient for a user as far as time and distance are concerned. Most such warranties also cover only breakdowns, not wear-and-tear or regular maintenance. So, these are ineffective if any modification has been made or the manufacturer/agency believes you have used the product improperly.

The company may refuse to cover your product under the warranty and you may still have to pay extra for repairs. In case of vehicles, any damage due to an accident will be covered under insurance, not by the extended warranty.Annual maintenance contract To get your appliances to run smoothly, you could opt for an annual maintenance contract or AMC. However, these aren’t as useful as they seem at first glance.THE CATCH: The upfront fee is heavy and you will probably only get one free preventive checkup for your appliance.

At other times, you will have to pay for replacement of damaged equipment, as well as extra labour charges, if needed. Often, the parts to be replaced or even labour charges are more expensive than the ones you are likely to get if you were to shop around. Another issue is that an AMC can be bought for only one product and will not apply to