How companies convince you to buy things you really don’t need

Majority of us know we could save several dollars by making a cup of coffee at home rather than buying a latte but Consumers Checkbook has compiled a list of things you allegedly shouldn t be paying for Kevin Brasler executive editor of Consumers Checkbook disclosed a large number of of the bad deals fall under one category Products services and extras that companies often push and they seem like good buys but they really aren t worth the money Other examples are home warranties trip protection plans extended warranties for electronics and maintenance contracts for your furnace or car These are great products for the companies that sell them They re enormously profitable but largest part consumers really shouldn t buy them Brasler explained Not all policies are bogus he added You definitely should have insurance for your car you definitely should have insurance for your home you have to have fitness insurance and if you re a single earner and you have dependents then you should possibly have life insurance he disclosed However companies that realm unnecessary policies are targeting a common weakness in human nature What they re doing is they re preying on what s called our loss aversion tendencies ' Brasler stated For someone reason for largest part people it seems far worse to lose than to spend The companies are targeting those who feel uncomfortable with the notion that something could go wrong So they ramp up the anxiety about missed flights or your furnace might break down or you might lose your cellphone Brasler noted But now they offer a response in the form of this peace of mind strategy However Brasler noted if you look into the fine print majority of of the little insurance policies and warranties are pretty worthless there s lots of little exclusions and companies often use these little fine-print exclusions to deny maintains The Consumers Checkbook list also notes saving money by skipping out on subscription services such as Amazon Prime kids toys bottled water instead of reusable bottles name brand drugs and gym memberships Source