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

Preponderance 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 ostensibly shouldn t be paying for Kevin Brasler executive editor of Consumers Checkbook mentioned various 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 majority consumers really shouldn t buy them Brasler commented 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 healthcare insurance and if you re a single earner and you have dependents then you should likely have life insurance he noted However companies that region 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 explained For someone reason for majority of 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 key in the form of this peace of mind guidelines However Brasler announced if you look into the fine print the majority 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 contends 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