Take advantage of manufacturer’s warranties, but don’t buy extended warranties

If the product you buy has a warranty, take advantage of it!

In the past year I have had several products that I purchased fail, have problems or otherwise meet their early demise.  Here are my products that had issues:

  • Xbox 360 - hardware failure
  • Canon Digital Camera - memory reader failure
  • Canon Digital Camera (Again) - imaging chip failure
  • New 32″ Insignia LCD TV - motherboard failure

When you have products that have problems like I did, make sure to look up the specific issues on the company’s support site, and see if your problem is a known issue, and whether it is covered under the warranty.  In many cases it will be covered and will be fixed free of charge.   You can save a ton of money, just by checking!

TVleg
Creative Commons License photo credit: borges,

Getting my problems fixed

Some of the miscellaneous problems I had fixed this year:

  • The Xbox 360 has been notorious for having hardware failures, with multitudes of people complaining of the Red Ring of Death console problems.  I didn’t think I’d be unfortunate enough to have these same problems, but I was.  A couple of weeks ago when I turned my console on to watch a movie, the light on the unit just blinked red.  It would not output video. Fortunately Microsoft has extended the warranty on this known issue, and after doing some research I realized that I was covered under the warranty.  I mailed the console in at their expense, and within a week or so I had a “new” refurbished console in my hands ready to go.  If I hadn’t checked into having the console fixed under warranty I probably would have had to purchase a completely new console at around $300.  Money saved by having the item fixed under warranty? $300
  • My Canon S400 digital camera also had issues in the past year and a half… TWICE!  The first time I would put a compact flash memory card into the camera, and it would spit out an error message. It turns out that it was a known hardware issue, and was fixed free of charge.   Money saved by having the item fixed under warranty?  About $200.
  • A few months later my Canon camera once again started having problems.  This time the screen and all images were displaying a purplish hue, and there was some distortion on the photos as well.  After checking, this was a known issue with several models of Canon cameras, and the company was fixing the problem for customers free of charge.  I sent it in and was sent my fixed camera a week later.  Money saved by having the item fixed under warranty? Once again, about $200.
  • Earlier this year we bought a new 32″ LCD TV for our living room when our old tv gave up the ghost.  We shopped around, used coupons and got a very good deal on the TV - or so we thought.  One day the TV started having problems.  It would just randomly turn itself off, and then back on when we were watching.  Turns out the issue was covered under warranty, and Best Buy replaced the TV’s motherboard free of charge in our home.  Money saved by getting it fixed under warranty?  $550.

It doesn’t pay to buy an extended warranty

While it is a great idea to take advantage of the manufacturer’s warranty on the products you buy, it hardly ever pays to buy an extended warranty. Consumer Reports says an extended warranty usually “amounts to expensive and unnecessary insurance.”  Here are some reasons why:

  • Extended warranties usually cost more than they’re worth: Before you buy an extended warranty sit down and consider the replacement cost of the item you’re purchasing. Often it doesn’t make any monetary sense.  Instead of buying an extended warranty, self insure yourself against product failure by saving a little bit of money each month to replace your product in case it dies.
  • The warranty may not cover what you think it does:  Often the warranty has exclusions that mean things you think you’re covering, aren’t actually covered.  Some parts will be covered, others won’t.  Or sometimes repairs will only be done so many times, or until the value of the item is exceeded. Check the fine print of any warranty you purchase.
  • Warranties are a big store profit center:  According to consumeraffairs.com Industry sources put the profit margin on consumer electronics extended warranties at between 40 percent and 80 percent.  That just goes to show that more often than not people are not using their warranties.
  • Duplicate Coverage: Sometimes the things you’re buying the warranty for are already covered under the product’s manufacturer’s warranty.  Double check to make sure.
  • Product breakdown trends: Trends have shown that if a product is going to have a problem, it will usually have that problem within the first year, or in the last years of service.  During the first year most products are covered by the manufacturer’s warranty anyway.  During the last years of service usually even the extended warranty has expired, and you’re probably going to want a newer item anyway.

So there are some of the reasons that I don’t buy extended warranties.  Find some more reasons and opinions at these links:

Should you buy an extended warranty?
Parade Magazine looks at extended warranties
Why you don’t need an extended warranty

What has been your experience in using your manufacturer’s warranty?  Have you purchased an extended warranty, and if so, were you glad you did?

August 13, 2008 · Filed Under Miscellaneous, money savers, tips

9 Comments 

Submit your post for our “Frugal things to do when you’re in..” series and map

Frugal Things To Do In…

Searching for some frugal things to do in your city of residence? Going on a vacation soon and want to know some of the frugal things to do in the area? Well, have I got the resource for you!

The members of the Money Life Network have decided to join together in creating a series of blog posts covering frugal things to do in the places we live in.  Over the past two weeks we’ve done the following posts on the areas that we live in:

Visit The Blog Posts

There are some great posts here,  and we hope you’ll find them useful!

Don’t see your city included in the list?  Well It’s high time you did something about it!  Write a post about “frugal things to do in.. ” for your own city, and submit it through the Money Life Network contact page.  Once we get it we’ll put your submission on the network site, and include a pin in our map for your post as well.  If you’ve got questions, leave me a comment!

July 31, 2008 · Filed Under frugality, money savers, tips

3 Comments 

Frugal things to do when you’re in Minneapolis, Minnesota

Frugal things to do when you’re in…

The Money Life Network is in the midst of a new series called “Frugal things to do when you’re in…“. The posts will talk about each of the network member’s home areas, and frugal things to do there when you’re visiting (or if you live there). Once you’re done reading this article, feel free to visit the series homepage and visit some of the other cities!

Also, if you’d like to write your own post about frugal things to do when you’re in your city, send us a link and we’ll add you to our frugal things to do map on the series homepage.

Minneapolis, a great place to live and a wonderful place to visit!

Minneapolis, at approximately 380,000 people, is the largest city in Minnesota. The name “Minneapolis”, means “The City of Lakes” in a mash-up of the Dakota word minne and the Ancient Greek word polis, which refers to the city’s 22 natural lakes.

Having lived in Minneapolis and surrounding areas for most of my life, I love living here, and think it is a true treasure, a beautiful place to live or visit. There is always something to do. You can enjoy the outdoors in one of our many parks. Or if you prefer you can attend a world class broadway show downtown. The cuisine is delicious and the nightlife is hopping. In short, you can’t go wrong with a visit to Minneapolis.

So what are some ways that you can keep things on the frugal side when visiting Minneapolis? Below I’m going to list some of the best ways that I know to make your trip fun and exciting, while at the same time not breaking the bank.  Some of the suggestions will be right in Minneapolis itself, while others may be in the greater Twin Cities metro area.  (all photos in the post were taken by me!)

So first let’s start with transportation:

Transportation

Minneapolis has plenty of public transit options to help you keep things affordable.  If you’re flying into Minneapolis St. Paul International airport, a good option for getting to the downtown area is to take the light rail transit.  Light rail is a relatively new addition to the Twin Cities area, and if you’re going to certain areas of the city it can be an affordable option to get from point A to point B.  Fares will be anywhere from $1.50 to $2.75 for the express.

Along the light rail route include such highlights as the airport, the Mall of America (one of the largest malls you’ll ever see), Minnehaha Falls, and ending up in downtown Minneapolis at the Metrodome, home of the Minnesota Vikings and Minnesota Twins. (see the Metrodome stop in the picture above)

Minneapolis also has plenty of buses running just about round the clock, so you shouldn’t have too much trouble finding transportation in the city.

If you’re planning on doing a lot of driving around the Twin Cities (probable if you want to see some things in outlying areas), try using a discount car rental website like hotwire.com or priceline.com to get a good deal on a car rental.  It is definitely easier to get around in Minneapolis if you have a car.

Enjoy our parks and 10,000+ Minnesota lakes

Minneapolis is known as the city of lakes, and with 22 of them - there is a good reason.  Any one of those lakes makes a great place to take the family for a picnic, take a canoe ride, or just to enjoy some sun. Here are a few of my favorite parks and natural spaces in Minneapolis and surrounding areas.

  • Lake Calhoun:  A great place to go for the day to enjoy some sun, a canoe ride, maybe some beach volleyball and a nice walk around the 3+mile lake.   It is the place to see and be seen in the summer months (FREE)
  • Minnehaha Falls: The falls are a natural wonder, and definitely a must visit for shutterbugs. In the area surrounding you can take nice long walk from the falls down to the Mississippi river.  Beautiful! (FREE)
  • Minnesota Landscape Arboretum: A 1,047-acre garden and arboretum about 20 minutes outside of Minneapolis. Because of it’s natural beauty this is often a chosen as a great spot for weddings and for just getting some great pictures. (15 and under free, $7 adults.  Free all day Thursday in the winter, and free on Thursday evenings from 4.30 p.m. until 8 p.m. or sunset in the summer)
  • Lyndale Park Rose Gardens at Lake Harriet:  Lake Harriet in south Minneapolis has a beautiful Rose Garden that has been blooming every year since 1907-1908.  It’s a popular place for weddings, photography and peaceful reflection.  If you’re going to Lake Calhoun anyway, stop by the Rose Gardens, it is just a short walk away.   Also, right across the street is a beautiful Japanese Gardens (FREE)

Major Attractions

  • Mall of America: If you like to shop, or even just people watch, this place will be heaven.   At the time it was built it was largest mall in america, and one of the largest in the world.   Fun place just to visit, even if you don’t spend money. Also has an indoor theme park.  If you prefer, you can go a few miles up the highway and visit the country’s first enclosed climate controlled shopping center , southdale center. (FREE + any money you spend shopping)
  • Minnesota State Fair:  At the end of Every August, the Minnesota State Fair is the most happening place to be.  While it probably won’t be frugal, if you enjoy eating, riding rides and viewing state fair exhibits, this is one of the best fairs in the country.  (Admission: $8 + food + rides)
  • Como Zoo: Located in St. Paul, this is one of two zoos in the area, and the only free one.  Even though its free it still has a wide variety of wildlife - everything from polar bears to tigers and gorillas.  One of the best free attractions in the cities.  (FREE: donations accepted)
  • Marjorie McNeely Conservatory at Como Park: A beautiful indoor conservatory/greenhouse that houses a plethora of beautiful plants year round.  A great place to go in the winter if you’re getting cabin fever, just take a walk through the tropical plants section and you’ll be just fine (FREE: donations accepted)
  • Sculpture Gardens & Walker Art Center: For a little bit of culture go and visit the Walker Art Center and Sculpture Gardens.  Considered one of the nation’s “big 5″ museums for modern art.   The museum normally costs $10 for adults, but is free to all every Thursday evening (5–9 pm) and on the first Saturday of each month 10 am–5 pm.  (FREE)

Museums

We have a lot of great museums in the Minneapolis area.  Here are a few of my favorites.

  • Mill City Museum:  Newly completed museum in downtown Minneapolis looking at the city’s past as the flour capitol of the world.  Beautiful riverfront location. ($10 adults, $5 children)
  • Science Museum of Minnesota: While it isn’t exactly cheap to go here, it is a great museum, and worth the price. They currently have a Star Wars exhibit showing. ($16 adults, $13 children)
  • Minnesota History Museum:  Museum looking at Minnesota history.  Beautiful museum building in downtown St. Paul. ($10 adults, $5 children.  See below for how to get a free pass)
  • Minneapolis Institute of Arts: located in south Minneapolis, this museum houses a ton of classical art, traveling exhibitions and also houses the Children’s Theater. My personal favorite museum, and best of all, it’s free! (FREE)
  • The Bell Museum of Natural History: The Bell Museum is part of the University of Minnesota and is located on the University’s Minneapolis campus.  (Free admission on Sundays)
  • Visit Museums free Courtesy of Minneapolis Libraries and Macy’s: if you can get a resident to go to the library for you - you can get tickets to many of these and other great museums for free!! Details HERE.  Thanks to Crossinator for the tip.  Visit his site here.
  • Other free museums: Here is a link to free museums across the Twin Cities thanks to Nikki: Free Museums

Sports

  • St. Paul Saints Baseball:  Minor League baseball at it’s best.  An evening at a Saint’s game is one you’ll never forget.  From the goofy announcers and massages given by nuns, to the fan contests between innings, you’ll love going to one of these games.  (Starting at $5 adults, $4 children)
  • Minnesota Twins: Go to a Twins game all summer at the metrodome in downtown. Major League baseball is always a good time.  Look for promotions for cheap tickets during the week, or family packages on the weekend. (Starting at $7 general admission)
  • Minnesota Vikings: This isn’t going to be frugal, but going to a vikings game is an electrifying experience.  (starting at around $30)
  • Minnesota Wild:  Probably the Twin Cities most popular team, going to a Wild game at the Excel Energy Center is probably the best NHL experience you can get anywhere.  The Excel Center is also the location for the 2008 Republican National Convention in September of 2008. Again, not cheap, but well worth it if you like hockey.  (starting at $22)
  • Minnesota Timberwolves:  The red-headed stepchild of Minnesota sports since they traded Kevin Garnett and started over.  You can get some cheap tickets for one of these games though.  (Starting at around $10)

Dining & Drinks

  • Matt’s Bar: Neighborhood pub in Minneapolis known for it’s Jucy Lucy cheeseburger (burger with melted cheese inside the meat).  Go here for a little neighborhood flavor, and a cheap meal! ($10-$15 per person)
  • Midtown Global Market: A global marketplace with foods from tens of different countries.  Food from Israel, Mexico, China, Africa, and more!  Fun place to shop and eat - or even take dance lessons- and you won’t have to spend a ton of money.  ($10-15)
  • Best Cheap Eats in Minneapolis: Check out this link for the city search Best Cheap eats in Minneapolis 2008 (LINKS HERE and HERE)

Other frugal entertainment

  • Comedy Sportz Comedy Club: A great place to go for family entertainment - they offer a hilarious clean show, and you’ll be rolling in the aisles. ($10 Thurs $12 Fri-Sat)
  • Music shows at one of the many fine music clubs in downtown Minneapolis:  There are a ton of great local music clubs in Downtown Minneapolis, particularly in the warehouse district.   Check out the Fine Line Music cafe or the Dakota Jazz Club on weekends for some great music at an affordable price.
  • Here’s a list of 150 things to do in Minneapolis

So there  you have it, my quick list of frugal things to do when you’re in Minneapolis.  Have your own suggestions?  Leave a comment and maybe I’ll add it to the list!

July 28, 2008 · Filed Under Travel, money savers, tips

21 Comments 

John Tesh tells us how to save, and gives us free gas cards!

John Tesh in all his glory

John Tesh in all his glory

I didn’t realize it, but John Tesh, (yes THAT John Tesh) is also now a bit of a self-improvement guru. In his new book, “Intelligence For Your Life: Powerful Lessons For Personal Growth” he talks about some good ways that you can save money when times are tough.  He posted an excerpt from it on his website this week.

Don’t buy a new car before calling your insurance agent.

Compare the cost of insurance for your top car choices. Also, check on the costs of repairing your new car and the likelihood of theft. All of this contributes to your out-of-pocket costs as well as your insurance premiums.

Pay with cash more often.

This seems like an obvious one, but if you always pay with cash, you won’t get into debt. You also will end up saving a whooping 30 to 50 percent more because watching the dollar bills slip from your wallet will stop your spending. Another benefit of paying with cash is that you’ll avoid financing fees from credit cards, late fees, and overdraft charges at your bank.

Eat out half as much as you do right now.

Studies show that the average American family eats in a restaurant four times a week. That’s much different from when I was a kid and eating at a restaurant was a huge treat. Today most families spend more than $5,000 a year in restaurant bills and tips. I’m not saying that you should always eat at home, but just cut back a bit on the eating out if you want to save money. A bonus: You’ll also save calories. Studies show we eat 30 to 50 percent more when we eat out. 

When flying, check out the airports that are a little farther away from your home.

It might be worth another twenty minutes in the car to fly out of an airport where the ticket cost is one-third lower. This really adds up if you’re flying the entire family out for an event. Many of the smaller airports also have cheaper and easier-to access parking.

Freeze your credit cards—literally.

This is one of my favorite pieces of personal finance advice from the radio show: If you are having trouble with credit card debt, don’t cancel your cards. Instead, put them in a bowl filled with water, place the bowl in the freezer. Whenever you get excited about a new purchase, you will have to wait for the cards to thaw out before you can put them on your card. By that time the urge will likely have passed. No microwaving!

John Tesh is also giving away $500 in gas cards every day through September 1st on his site at Tesh.com Stop on by and register for your chance to win.

Who knew John Tesh could be so cool!

Links:
John Tesh: How to save money in an economic crunch

July 16, 2008 · Filed Under free stuff, money, money savers, tips

4 Comments 

Summer Savings Series #11: Saving at the movies this summer

Summer Savings Series

Going to the movies is no longer cheap entertainment

My wife and I are self-proclaimed movie buffs, we just love going to the movies. From the latest Indiana Jones movie, to the courtroom dramas and tear-jerker “chic-flicks”, we usually end up going to the theater a few times a month.

Going to the theater is becoming a pricier proposition every year, with movie ticket prices in our area topping out at $10 per person recently. For a family of 4 or 5 you could easily spend over a $100 for a night at the movies!

So via SmartMoney.com and some other sources here are some ways that you can save some money at the cinema this summer.

10 Ways to save money going to the movies

  1. Bring your own treats: With popcorn prices going through the roof, and the prices of candy at the concessions being so high, bring your own refreshments. Not all theaters will allow this, but call beforehand, and many will allow you to bring your own goodies.
  2. Seek out family freebies: In the summertime many theater chains offer days where parents can bring their kids for free movie days. For example, Regal Cinemas offers a “free family film festival” every Tuesday and Wednesday through August.
  3. Use coupons and freebie movie ticket deals: Use coupons from your local “Entertainment Book” to find reduced rates on tickets, or you can often find deals at your local grocery to get free movie tickets when you buy certain products. Keep your eyes peeled for the deals.
  4. Go to the movies at a second-run theater: This is by far our biggest money saver. My wife and I go to most movies we see at an independently owned second-run theater. The movies come out a couple of months later than at the normal theater, but the ticket prices are $8 cheaper - $2 instead of $10. Wait a month or two and see the movie at your local cheap theater.
  5. Buy ticket packages through the theater chain: If you still want to see movies when they first come out, try buying packages of tickets through your local AMC, Regal or other movie chain. Often you can save $2-$3 per ticket by buying them in blocks ahead of time. The catch is that often you can’t use the tickets on special engagements or opening weekends.
  6. Go to a matinee: Instead of seeing the movie at a peak time, Friday or Saturday night, go to an afternoon showing. The prices will often be $2-$3 cheaper, and the theater is often less crowded as well - meaning you’ll get to sit wherever you want!
  7. Avoid reservation sites: When you buy your tickets online a lot of the time you’ll have to pay an extra .50 to $1.50 per ticket. Buy your tickets at the theater to avoid the fees.
  8. Join a movie-watchers loyalty club: Many movie chains offer loyalty programs where you get free refreshments and movie tickets once you’ve accumulated enough points. If you go to the movies often, it may be worth it to join.
  9. Go to a drive-in movie: Go to a drive in movie with friends and see a double-feature! Not only will you get to see more movies for your dollar, but the prices are almost always cheaper to begin with! Its a fun experience to go to a drive-in and is a good value for your dollar! Also, its easier to bring your own refreshments!
  10. Stay at home, rent at your local RedBox: Get a movie from your local RedBox movie rental kiosk, and use a coupon for a free rental from the website InsideRedbox.com. The movie rental kiosks can be found in McDonald’s restaurants, grocery stores and other local locations.

So there are a few ways you can save on going to the movies this summer. What are your tips for saving on cinema spending?

Check out tomorrow’s summer saving series post over at PTMoney.com, or check out the archive of Money Life Network series posts and user submissions at our network site. Don’t forget to write our own post for your chance to with a $100 Amazon gift card!

June 23, 2008 · Filed Under Commentary, contest, money savers

4 Comments 

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