It's Thursday, and this is the Ramsey Call of the Day.

Part of the Ramsey Network.

Amber on Twitter asks, I just spent $1,000 on a new phone.

I have not bought the extended warranty yet, but I have 60 days to decide,

should I buy the two-year extended warranty for $200.

A $200 warranty on a $1,000 phone?

Oh, this is a classic.

Okay, Amber, here's the deal.

100% of the time I I do not buy extended warranties.

In other words, never buy an extended warranty.

Let's walk through this for a second.

The extended warranty, number one, most products have a decent warranty on them these days anyway.

Number two, your $1,000 phone is going to be replaced fairly soon anyway.

You're going to get a new phone think about how many times you've

gotten the new phone I wish I had a whole lineup of all the phones I've owned in my life

from the one that used to be attached to my car to the brick phone all the way up to the

tiny little phone and now the classic smartphone or so it says it is you're going to get another phone you're

not going to keep this phone that long anyway and that's true of most electronics in the 50s and

60s electronics and appliances we fixed them we didn't replace them now we throw them away and we get a new one when

your TV goes out very seldom do you fix it you just get another one and that's

just part of the rhythm because the electronics are so stinking and expensive

compared to the repairs so let's talk about extended warranties now the math

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