5 Financial tips for the last week of June 2012

Check out the 5 financial tips for the 4th week of June 2012.

Tip no 1 - Begin your retirement planning with your first job.

Retirement planning is a long process. You can't plan your retirement within a fraction of time. You have to start planning for your golden years of life right after getting your first job. You need to participate in the retirement plans. It can be 401 (k), Traditional IRA, Roth IRA, etc. Don't exhaust all your money every moth. Save a certain amount for your retirement years. You would not want to live rich now and die in poverty. You can consult a financial planner and decide about the retirement plan that will suit you best.

Tip no 2 - Credit repair companies are a widespread scam. Stay away from them.

There is nothing that the credit repair agencies can do to repair your credit within 7-30 days. In fact, if the creditors/debt collectors are reporting correctly, then no one can do anything. The credit repair agencies can only dispute certain items with the credit bureaus. The items will not be there on your credit report until the completion of the investigation. However, if the creditors/collectors have reported correctly, then the items will re-appear on your credit report.

Stay away fro credit repair agencies. Try to repair your credit on your own. This will help you save money and time.

Tip no 3 - Know the importance of using credit cards.

Credit cards are an important part of life. You use credit cards to buy groceries, accessories, apparels, etc. You use credit cards to build credit history. They help you to improve your credit score gradually. You get special rewards for using the cards. You can get air miles and cash back rewards. You can even save money while traveling. What more, you can use credit cards for making online purchases.

There are plenty of benefits of credit cards. Understand the importance of credit cards and use them cautiously. Use them to improve your financial life and not to disrupt it.

Tip no 4 - Sit together with your spouse and formulate a budget that you will be able to follow after meeting your necessities.

Financial planning is an important part of life. You need to do it together with your spouse. Talk about your financial goals, needs and aspirations with your spouse. Know about his/her requirements too. Thereafter, create a budget which both of you can follow after meeting your necessities. This will help you spend money judiciously. Simultaneously, you'll be able to save money. Reward yourself when you're able to follow a budget. This will motivate you and your spouse to follow the budget.

Tip no 5 - Payday loans are short term solutions and if used as a long term financial aid can cause undue hardship.

Payday loans give you debt relief only for a certain period of time. You can't depend upon payday loans in the long run. This is because the lenders charge high interest rates on the loans. Try to pay off the loan within the scheduled date. Calculate the loan payment amount before submitting your application. Check out the interest rate on the loan. If it is not possible for you to pay off the loan, then don't submit your application.

Don't roll over your payday loans too. The interest rates will accrue with each passing day. The loan amount will become so huge that you'll face huge problems in paying it off.