Use common sense when you are in a store and they say, “You want the insurance plan, don’t you?” I was getting a new iPad the other day that was about $350. The young lady said, “I can insure all your phones with a 20 percent deductible for just $39 per month. “You want that don’t you?” I thought for a minute and said, “I have been with your company 11 years and have never brought anything back that needed to be worked on. Each year I would spend $468 for insurance. Calculated over 11 years, that would be $5,198 spent on insurance, so the answer is ‘no.’” She just smiled and said, “I understand.”

I see people buying a new vacuum cleaner for $170 and buying a two-year warranty plan for “just $29.”

Folks, think about what you’re doing with money you worked so hard for. The warranty on my Tundra has run out, and every week a company calls to sell me an extended warranty. I tell them “no” and get them off the phone fast. The other day I said, “Tell me your deal.” It was just $189 for up to a 100,000-mile warranty, and I told her that was not too bad. Then, she said that would be for 36 months. That would be over $6,804! What would be the odds that I would have a motor go out before $100,000 miles? Dave Ramsey would tell you to insure big ticket items like your home, not a $170 vacuum cleaner.