Five Products That Are a Waste of Money

2. Brand-name food: While generic foods in the past have been of noticeably inferior quality to brand-name foods, there has been a change building over the past few years. The quality of generic and store brands has greatly improved. In fact, many store brands are basically the same as a brand-name product with a different label on the outside.

While the brand-name companies take great care to keep very quiet about it and won't say if the ingredients are exactly the same, more and more are using their facilities to make store brands. For example, when Peter Pan peanut butter was recalled by the Food and Drug Administration in February on the concern it was tainted with salmonella, the recall also included Great Value Peanut Butter, which is Wal-Mart's store brand. Both were made in the same facility and their product codes began with the exact same number sequence.

While a generic alternative won't be available for every brand product you buy, you are likely paying extra for many food brands that are not better in quality than the store-brand equivalent.

3. Premium gas: For most cars, premium gasoline is not any better than cheaper, regular unleaded. Both types of gas will burn properly, your car's performance will be the same and its fuel system will be just as clean. There is absolutely no reason to pay extra money for premium gas.

The exception is for high-performance engines in some sports cars and some older, heavier automobiles. How do you know if you car needs it? Simply look at your owner's manual. If it says "premium unleaded only," then your car needs it. Otherwise, it doesn't.

4. Bottled water: As I explained in my article last week, bottled water is a good way to drain your bank account. It doesn't necessarily provide you with a better product and there is a good chance that it originally came from the same source as your tap water.

It's important to take the time to find out whether the products you are paying a premium for provide added value that justifies the higher prices.