A deal that sounds too good to be true usually is. Offers that often fall into this category are promises to fix your credit problems, low-interest credit cards, deals that let you skip credit card payments, business/job opportunities, risk-free investments, and free travel.

Extended warranties or service contracts are rarely worth what you pay for them. This has been documented repeatedly from many sources, including Consumer Reports, yet people still pay for them. They’re not always a bad deal (I always take them out for laptop computers), but most of the time, you’re better off self-insuring. Instead of paying for service contracts, put the money you would have spent into a separate savings account. When something goes wrong, pay for the repairs out of this fund. Here’s how one Get Rich Slowly reader does it.