5 Financial tips for the 2nd week of June 2012

The 5 Financial tips for the 2nd week of June 2012 are given below:

Tip no 1 - Maximize your employment benefits.

Budgeting, investing and savings are the secrets ingredients of a happy financial life. However, there is yet another important ingredient which gives strength and solidity to your financial life. This is employment benefits. Several employers offer lucrative employee benefits in order to retain workers. Get to know about the employment benefits and try to take advantage of them to the fullest limit. Check out the company brochure and websites to know about the employment benefit programs. Find out the ways to get maximum benefits.

Tip no 2 - Beware of the credit card laws to avoid any scams. Ignorance is not always bliss.

Ignorance is not all bliss in this world – specially the financial world. You need to be updated about the credit card laws in the country. Otherwise, a credit card company can break a credit card law confidently and you won't be able to do anything about it. You'll be scammed without even having a clue about it. For example: the credit card companies can't increase the interest rate on the card just like that. They need to give you prior information. If you don't know this rule and the creditor violates it, then you won't be able to take any action against him.

Tip no 3 - Buy adequate coverage so that you do not have to pay anything from your pocket in case any mishap occurs.

Insurance has become a necessity in life. It offers protection when any mishap occurs. Always buy adequate coverage to safeguard yourself from hazardous incidents. Buy some basic insurance policies at first – auto, home, health, life, disability, etc. Thereafter, buy those insurance policies which you may need in future – flood insurance, mortgage insurance, travel insurance, etc. Don't buy the minimum coverage only. It may not be enough for you. Purchase insurance coverage as per your needs. Otherwise, you'll end up spending money from your own wallet when a disaster strikes you.

Tip no 4 - FICO is the most widely applied and accepted credit scoring model.

There are various credit scoring models in the country. These credit scoring models calculate your credit score. The lenders/creditors check your score to determine your credit worthiness. They determine the interest rates on the loans and credit cards after checking this score. FICO is the most popular credit scoring model in the country. This model uses credit details of a consumer to calculate his credit score. The FICO score range varies between 300 and 850. The higher the score, the better is chance to obtain a credit card or loan.

Tip no 5 - Review your insurance coverage.

Review your insurance coverage to know how much protection you're getting from the insurance company. Find out your coverage limit, deductibles, premium rates, etc. from the insurance agreement. If you find that you don't have sufficient coverage, then you can get an extra coverage. If you feel that you have excess coverage, then you can skip some coverage. This will help you save money. In case, you see that your friends are getting the same coverage at a low premium from another insurance company, then you can convey this message to your insurer. Ask him to lower your premium or else you'll go to another insurer.