Single-issue insurance policies are considered a rip-off by some consumer advocates. Clark also agrees that you should avoid them. Examples of single-issue policies include mortgage life insurance, cancer insurance and accident insurance.

In the case of cancer insurance, insurers use the power of the C-word to sell the policy. Years ago, people wouldn't even utter the word "cancer." They would just say that you had a malignant tumor, because a diagnosis was often considered fatal. But today, many people survive cancer. Insurers, however, have learned that they can still capitalize on people's fear of the disease.

Accident policies are a tremendous rip-off. The reality is that general insurance -- of the life, disability and/or health variety -- represents a better choice.

Mortgage life insurance, meanwhile, is also garbage. The premiums are about 10 times what life insurance should cost. The worst part of it all is that you're insuring the mortgage company, not yourself; mortgage life insurance pays off the lender in the event of your death! But your survivors likely will have more pressing financial needs at that time. That's why plain vanilla term life insurance would suffice in such an instance.

Finally, extended warranties on electronics are another example of single-issue insurance policies that you should avoid. Consumer Reports says that 1 in 5 laptops will fail in the first 5 years. Yet, on the bright side, 80% will go for 5 years without a problem.

Another reason why extended warranties don't make sense is that the laptop or HDTV you buy today will be obsolete in 24 months. You shouldn't insure rapidly depreciating commodities.

A recent trend in real estate has Clark very upset. Lenders are now placing ads, offering to loan people more than 100 percent of the purchase price. One recent ad in a Virginia newspaper was offering 107 percent on a home. That is so dangerous. Clark does not recommend that you do 100 percent loans, much less 107 percent. He does like the piggy back loans where you take out two loans – one for 80 percent and another for 20 percent. That way you eliminate Private Mortgage Insurance or PMI. But it’s always better to have a down payment, even if it’s a small one. Think about it. You buy $100,000 home and take out this loan. You instantly owe $107,000 with this plan. So you’re years away from paying it off. There is always someone who will throw you more rope than you can handle. It’s a problem if you get in over your head and you lose your job or you have to move. So, save money for a down payment first. Secondly, buy less house than you qualify for. Clark recommends you step back 10 percent from the qualifying amount. So, if you qualify for a $100,000 home, buy a $90,000 home.