Check out the 5 financial tips for the first week of March 2013.
Tip no 1: Buy the car, which you can afford, not the one that you want to flaunt.
Who doesn't love to flaunt a lovely car to neighbors and friends? However, it takes a lot of guts and money to buy an expensive car. If you have a huge cash-reserve, then go and buy the best car in the world. However, if you belong to the middle-class group, then it’s better to purchase a car within your affordability.
You can always take out a huge auto loan to buy an expensive car. Nevertheless, you'll have to pay interest rate on the loan. If you’re unable to repay the loan, then the lender will be more than happy to take away your cherished possession.
Tip no 2: Fresh food on the table is more important than new shoes on your feet. Prioritize your spending.
There is a big difference between necessities and luxuries. You have to buy necessary items every month to survive in this world. For instance, if you don't buy food, then you can't eat. If you don't eat, then you won't be able to live for a long period of time.
On the other hand, you can very well survive without luxurious items. You don't need new shoes every day. A pair of shoes is enough. So, it’s best to not spend money on new shoes every month. Rather, use your hard earned money to buy foods and other necessary items.
Tip no 3: If you buy only what you need, you will save what you want.
You can save what you want by purchasing only the essential commodities. In this current economy, the more you save, the greater is your financial stability. So, use your money to fulfill your essential needs only. Give up your habit of making impulse purchases. If you need help, then use a personal budgeting application. This application will help you remain focused on your goal. The moment you start spending money to purchase luxury items, this financial tool will give you a red signal. You'll be able to be in control over your finances before it is too late.
Tip no 4: Every dollar counts so scrutinize your credit card statements, cell phone plans and utility bills before you pay them.
No one will give you an extra cent without getting anything in return. You've to earn every penny in the 21st century. So, it makes sense to save every bit.
Check your credit card statements and find out if the company is charging you correctly. Find out if there is any error in the bill. If the bill amount is not correct, then inform the credit card company about it.
Check the rate you're paying to the credit card company. Know what the other companies are charging from your friends and colleagues. If others are paying less for getting the same services from credit card companies, then why should you pay more money? Ask the credit card company to change your plan.
Tip no 5: Saving without investing is like a broken pencil; completely pointless.
You can't survive in this world without cash-reserve. So it is important to save money. However, it is pointless to keep all your money in the savings account. You should try to increase your money so as to improve your financial health.
You can invest your money to increase your savings. You can invest in stock, commodity, real estate, foreign exchange, etc, to reap profits. Just talk to your financial planner about investment plans. He can tell you if your plan is good or bad. Other than that, you can go through some financial websites to learn about the latest happenings and trends in the investment market.