Services I do not need and fees I do not pay

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1) Overweight Luggage- The fees for overweight luggage can put a damper on your wallet when traveling. The cost of overweight baggage ranges from $50 - $200. I am a light packer, so hopefully will never have to pay that fee.                   2) Car Rental Insurance - Most credit card companies offer this coverage. Read the fine prints of all your credit card agreement. This coverage is stipulated into there. I checked mine last year before I went on vacation, and I had that coverage. Some card companies will offer more than others.               3) Whole Life Insurance Policies - Many people buy these policies and regret it later. The premiums for these policies are excessively high and the coverage is lousy for the amount that is paid. Many insurance sales people have sold these to people and convinced them that the dividends from the stock will pay for the policy after a few years. That has not been the case for many people because of our drastic economic downturn. People have continued to pay for their policy pass the period they were told they could stop paying premiums. I recommend term life insurance.         4) Credit Protection - I will never purchase credit protection from a credit card company. In accordance with the Federal law, if your identity if stolen, you will only need to pay $50 to the credit card company, so why are they charging for credit protection at $2.99/ month or whatever it is?                     5) Extra Leg Room on a Jet Blue Flight - Jetblue airways already has the best leg room compared to other airlines. I can't be sold on the addtional $50 that's charged for more leg space.                                     6) Room Service - I have never paid for room service. It is convenient, but expensive. I am just not one for eating in my hotel room.                                7) Checking account monthly service fees - I cannot justify the cost of a monthly checking account fee. Free Checking seems like a thing in the past now with all the new fees that have come into existence since the overdraft protection law has been put into place and banks have started losing revenues. Free Checking is still around. Many smaller banks are welcoming customers for Free Checking as bigger banks are driving away customers by charging a monthly fee for maintaining a checking account.                           8) Beach Club Memberships - The average beach club membership costs $1,000 per year. Where I live, summer is only 3-4 months long. That works out to about $40 per visit. I would definitely opt out of this one.                            9) Time Shares  - I will never ever own a Time Share. I have heard too many horror stories of people that have purchased and regretted it. The cost to own and maintain a timeshare is astronomical. There are also many restrictions that make time shares unappealing. You must know a year in advance where are when you'd like to go. You are basically required to plan a vacation a year in advance. Flight prices are constantly changing. Many people commit to a date and place but are unable to secure a good flight deal, and end up canceling their vacation all together.                                             10) Cell Phone Insurance Plan - The average premium for cell phone insurance is $5-10 per month. The average cost for a 24 month contract is $180. The average deductible is $50-$200. If you do the math, you've basically bought yourself a brand new phone. The alternative would be to skip the insurance, and in the event that you lose your phone, find an old phone or someone who has one that they are not using and activate it. Use that until the contract ends and you are able to get a new phone at the reduced contract price. If you would like a better phone, check online sites like ebay and you will find pre-owned phones, some in excellent condition for about half the cost.                         
 
                                    
lilywow (rep: 8.31k) posted Jun 09, 2012
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7 Comments
nimrodboy3
i'm not one for ordering room service, but sometimes it is nice..convenience is great. sometimes the benefits outweigh the costs..just like ordering food at the pool...or if you look at the same concept..but in a different location..when you go to the airport and get hungry..and you buy something to eat..it's ridiculous what they charge, but you get your taste filled..

as for timeshares..i'm not a fan of them..but for some..the benefits outweigh the costs again..and as long as you make use of them..they can save you money in the long run. what's great nowadays is that some timeshares have changed from the traditional once-a-week style to being an any-week style. it's great..it's more of a vacation membership..where you can choose which week to go. it's also great because you don't need to plan everything around one specific week like before..you can just call a few weeks ahead and say.."hey..i'm coming over..make way"..or something of that nature..and blam!
nimrodboy3 (rep: 67.9k) posted Jun 09, 2012
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gangstabarbie
Looks like a good list you put together. At 100lbs hopefully I will never have to pay for more leg room :)
gangstabarbie (rep: 9.65k) posted Jun 10, 2012
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erick99
Nice job. Plus'd
erick99 (rep: 15.9k) posted Jun 10, 2012
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Acidbaby
As someone who essentially makes his primary residence a hotel for 9 months a year. Although in 2 years ive only ever ordered room service twice, I usually check the menu upon arrival to a new hotel ive never stayed in and my experience is room service prices are no different than dining room prices other than the automatic gratuity that I would have given anyway.

I agree with most everything other than that. And im sure many hotels do jack up the prices but I havent really seen any yet. Spot on with the rest of them though. Never flew on JetBlue so I dont know about that one. And also im kind of iffy on the term life insurance, the benefit of whole life is that it has cash value so if you play it right its much more superior to a term life insurance you pay on and have no option of getting anything in return unless you are injured or die lol.
Acidbaby (rep: 6.84k) posted Jun 10, 2012
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lilywow
@ Acidbaby - point well taken. As for the whole life insurance deal, I am not on board.The cash value is essentially derived from the investment the insurance company makes with your money in the form of additional premiums paid every year. The formula is complicated, but in a nutshell, part of your premium is used to purchase the insurance, and part of it is invested to generate a return on your money, and that is how cash value is built.

The bottom line is, most insurance agents will convince you to get a whole life policy with the cash value pitch because their commission payouts on a whole life is substantially higher than what they would receive on a term life policy.

If you buy your own term life, and invest the difference in what you would have paid in premiums for a whole life policy, you will have more coverage and you can invest the difference and generate your own cash value which generally yields better returns than what the insurance company does for you. You control your own money.
lilywow (rep: 8.31k) posted Jun 10, 2012
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Acidbaby
Oh for sure. How many people do that though? From my experience people are afraid to invest money. I cant even tell you how many people I work with that come to me for some advice on their 401k that they have had for 10 years but never touched, never rebalanced, changed elections, nothing. They started it and it just sits there in a cash fund making them nothing. Of course taking that extra money and investing it on your own is a much better choice. A whole life policy isnt so bad if your in it for the long haul though. Its not something you want to get into when your 40 years old.
Acidbaby (rep: 6.84k) posted Jun 10, 2012
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lilywow
Understood.
lilywow (rep: 8.31k) posted Jun 10, 2012
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