5 Financial tips for 3rd week of June 2011

Glance through the below mentioned financial tips for the 3rd week of June 2011:

Tip no 1 - Check whether or not your pdl lender is legal in your state

You should always find out whether or not lending of payday loan is legal in your state. You should also check whether or not your payday loan lender has the license to operate in your state. If the payday loan lender doesn't have the license to do business in your state, then you are only obligated to pay the principal amount. The lender can’t legally force you to pay the interests or the fees. However, you'll have to pay the interests and fees on the legal payday loans. Make sure you work with the legal payday loan lenders to avoid unnecessary troubles in future.

Tip no 2 - As every drop of water makes the ocean, every penny you save can add up to a huge amount of saving

Most people don't understand the value of savings. They believe in the concept of "live life to the fullest", which is a mistake, You can never tell what will happen next. This is why you should try to save money as much as possible. If your net monthly income is low, then it does not mean that you can’t save. You can save money with a piggybank. Purchase a piggybank from the market. Make it a point to deposit some amount of money in the piggybank everyday. There is no rule that you'll have to save minimum $10 in the piggybank each day. You can even deposit as little as $1 in the piggybank if you can't afford to save more.

Tip no 3 - Purchase insurance policies according to your capability

You should contact the insurance professionals before purchasing an insurance policy. The insurance professionals can tell you about the type and amount of coverage you actually need. There is no justification in paying huge amount of money for unnecessary coverage.

It is true that a higher deductible helps you lower your premium rate. But if you can't afford to pay a higher deductible, then it is better to not opt for that. Choose a deductible according to your affordability. You can also plan a budget to determine the overall amount you need to pay for your insurance premiums.

Tip no 4 - Always make sure you know how much money is there in your bank

Calculate the total amount of money you have in your bank account. This will help you know about the available funds in your account. Once you have a clear idea about the total savings in your checking account, it becomes easier for you to manage your finances in a better way.

You should check your account statement from time to time. You can find out all the financial transactions that have taken place in your account from the statement. This will also let you know whether or not any illegal financial transactions have taken place in your account.

Tip no 5 - Sip into SIPs

You can go for systematic investment plans (SIPs) when you can’t afford to invest huge amount of money in mutual funds. In a systematic investment plan, you invest a certain amount of money for a specific period of time. This helps you lessen the market risk and combat the volatility. You won’t have to invest a huge chunk of your hard earned money and this is its biggest benefit. It also helps you fight inflation competently.

Sips help you develop the habit of saving. As you keep aside a certain amount of money for investment purpose, you accumulate wealth in the long run, which is good for your financial future.