Have a look at the 5 financial tips for the 4th week of August 2012.

Tip no 1 - Make your first monthly mortgage payment of a new year on the last day of the previous year to maximize your tax deductions.

This can potentially help you slash your IRS bill by a significant amount. Usually, your home loan payments are made at the fag end of your occupancy period. This basically implies that your mortgage statement for 1st January actually shows the previous month's mortgage interest, which is December. This in turn helps you qualify for tax deduction. If you can make the mortgage payment one day early (last day of the previous year), then it'll help you get an extra tax deduction.

Tip no 2 - Buy things only with cash and if you do not have sufficient money, wait till you can save the required amount.

If you don't want to receive huge credit card bills at the end of the month, then try to not give in to your desires. Don't buy anything that catches your fancy. If you love something in a store, then pull out your wallet and check if you have sufficient cash to buy it. If you're not carrying enough cash, then get out of the store straightway. Don't visit that store unless you have saved the required amount. It may take a few days to come up with the money. However, if you really care for your financial life, then it will be worth the wait.

Tip no 3 - Learn to invest.

No body is a born investor. You have to learn the tricks of investment slowly but steadily. You can know about the investment strategies from market trade analysts or brokers. Other than that, you can learn useful investment tips from the business magazines, financial websites and news channels. You can watch talk shows or read some financial articles to gather your knowledge on investments.

Invest a portion of your income in various markets. There is no doubt that you'll make mistakes in the initial phases of investments. However, you'll learn from those mistakes and become a smart investor with time.

Tip no 4 - Set up an automatic savings plan with your bank.

Modern technology has made it very easy for the people to create an automatic savings plan with your bank. If your salary is directly deposited by your employer, then it will be comparatively easier for you to set up the plan. You can just talk with your banker to have a portion of your salary automatically deposited into your savings account. The amount can be big or small. It hardly matters. What matters is that a specific amount will be deposited in your savings account every time your salary is credited by your employer.

Tip no 5 - Go for a morning walk to save on gym membership fee.

Nothing can be more refreshing than going for a brisk morning walk in the park. You will feel fresh and relaxed after taking the walk. You'll burn calories naturally and lose weight. If you want, you can even do light or heavy exercises in the park. You can do the exercise as long as you want. This will not only help you become physically fit but also assist you to save money on gym membership fee. You don't have to pay a hefty amount to the gym every month.