Best idea I’ve heard in a while…
Create an “extended warranty fund”
Instead of buying warranty after warranty, why not create an “extended warranty fund.” In other words, whenever a retailer offers you an extended warranty, simply transfer that amount of money into a dedicated savings account*.
If/when problems arise, you can simply pay for the repairs (or replacement) out of your warranty fund. And once the fund builds up to a sufficiently healthy size, you can back off on your contributions.
There are two main benefits to self-insuring in this way. First, you’ll get to earn interest on the money as it accrues. Second, you’ll be the one that gets to keep the cash when your stuff doesn’t break.
Sure, there are bound to be some instances in which you would’ve been better off with the extended warranty, but remember… These warranties are designed to be profitable. Thus, more often than not, you’ll come out ahead by skipping them entirely.