Have a look at the 5 financial tips for the last week of December 2011

Tip no 1 - Make your own Christmas cards, not only will it add a personal touch, it will also help you to save money.

Markets are flooded with Christmas cards of various designs and sizes. Have a look at those cards and create your own Christmas card. After all, holidays are a great time to showcase your creativity and talent to your loved ones. Gather papers, glues, colors, scissors, etc. and start making your Christmas card. Design your card according to your wish. Write messages inside the card. This will add a personal touch to the card. Your friends will appreciate the fact that you have chosen to devote your precious time and energy in making Christmas cards instead of purchasing them from market. What more, you'll save money on the Christmas cards.

Tip no 2 - Understand the importance of your budget and try to follow it in every situation.

Understanding the importance of budget at a very young age is important for your financial success. Budgeting helps you know how much money flows in to your account and goes out of it. It helps you to keep any eye on your income and expenses. As such, it should be your first financial step in life. Plan a budget and stick to it throughout your life.

If you ignore your budget and spend dollars according to your whims, then you'll very soon start losing control over your money. On the contrary, if you create a budget and follow it, then you'll have a clear idea about how much to spend at various times.

Tip no 3 - Drop collision & comprehensive coverage on your old car to save money on auto premiums.

If your car is old, then a wise move will be to drop the collision and comprehensive coverage. The Actual Cash Value of the old cars falls with time. When you car meets an accident and gets damaged, the insurance company reimburses you up to the Actual Cash Value (ACV) minus the deductible. It has been observed that the ACV of old cars drop to such an extent that the claimant hardly gets much money as a financial compensation for the damage. So, drop this coverage if your car is several years old. Save the money on premium and use it for some other purpose.

Tip no 4 - Ignore all offers that sound tоо good to be true.

Good offers are hardly available nowadays. So, if anyone makes an extremely good offer to you, then beware. It may be scam. Take a second opinion from your friends and family members. Listen carefully to what they say and act accordingly. On the other hand, start researching on the person before accepting his offer. You can get some information from the Internet. If you find that it is simply a scam, ignore the offer immediately.

For example: some debt relief companies promise to eradicate debts within a week. The offer may seem good, but it is not possible in reality. It is basically a scam.

Tip no 5 - Before you buy something new, sell something old.

This tip helps you stay within your budget. Whenever you want to purchase some new items, make sure you sell some old products. For instance, if you want to buy 10 cups, then sell some old cups or donate them to a charitable organization. When you have a look at your existing set of cups, find out if you really need to buy a new set. Determine if you can use some old cups. If you feel that around 4 cups are fit for daily use, then buy only 6 new cups. This means that you'll save money on 4 new cups. Moreover, you'll save some space in your closet and cup-boards.