Check out the 5 financial tips for the 4th week of December 2011

Tip no 1 - It's smart to save, it's smarter to invest.

Savings is a smart financial move. However, it is smarter to invest money in different markets to meet short and long term financial goals. Consult a financial planner and invest in low risk mutual funds, stock market, commodity market and currency market to make money. The financial planner can tell you when and how to invest money.

Get acquainted with the investment terminologies and strategies before investing your hard earned dollars. Follow the market trends and invest accordingly. It may be a smart move to invest your savings, but it is not a good move to make investments without doing any research.

Tip no 2 - Procrastination is the enemy of your financial success.

To do or not to do – this is the biggest enemy of your financial success. If you really want to achieve a financial goal, then start taking restrained measures for accomplishing it. Procrastination will not help you in any way. For example: if you want to retire early, then start contributing to the retirement savings account from a very young age. If you procrastinate and don't contribute to the retirement accounts till you're 40, then it will never be possible to take up an early retirement.

Tip no 3 - Do not purchase things in a hurry. Look for all possible options.

Never rush to the store and purchase things in a hurry. Do look at the possible options when you need something. For example: one day when you are cooking pasta for dinner, you find that there is no tomato in the refrigerator. Instead of driving to the nearest grocery store to purchase the vegetable, use tomato ketchup to cook the pasta. There won't be much difference in taste. Your family won't even detect the difference. They will gobble the food and you'll save time and fuel.

Tip no 4 - Review Your insurance coverage.

Analyze your insurance coverage at least once a year. Find out if you have sufficient coverage. If your present financial situation demands more coverage, then contact the insurance company and get yourself adequately covered. On the other hand, if you feel that you have excess coverage, then you can drop some to save money on premiums.

If you find that others are paying less on the premiums for the same amount of coverage, then you can talk to the insurance company about it. Notify the insurance company that you'll switch to another company if the premium amount is not reduced.

Tip no 5 - Know your borrowing limit by using an online mortgage calculator and then decide how much you may take out.

Browse through the mortgage websites and get acquainted with the prevalent interest rates before applying for a loan. Use online mortgage calculators to determine the amount you can afford to borrow for purchasing your dream abode. Calculate the monthly payment amount with the help of online mortgage calculators and plan your finances accordingly.

Never make the mistake of taking out a loan which you can't repay. You can certainly purchase a big house with a huge mortgage loan. However, if you get delinquent on the loan due to some financial problems, then you may lose the house to the lender.