Here are the 5 financial tips for the first week of October 2012.

Tip no 1 - Overspending on business expenses that aren't absolutely necessary can quickly erode your personal finances.

You need to invest a lot of money for setting up a business. You need huge business capital to establish your business. You need to take out business loans to run your business smoothly. However, keep it in mind that you've to pay off your business loans eventually. So, make sure you're not spending too much on your business expenses. Otherwise, you'll have a hard time in paying off your business loans.

If you're unable to tackle your business expenses, then you may have to take out a personal loan. This may in turn take a toll on your personal finances.

Tip no 2 - Spend money within your affordability so that you may not fall into debt problems unnecessarily.

People often wonder about the right way to stay away from debt problems. It is difficult to point out the correct way to avoid debt. However, one can easily determine the easiest way to not get fall into financial problems.

The easiest way to evade debt problem is to never get into it. You can steer clear of debt problem by living within your means. You should shun impulsive credit card purchases. In case you have reached a stage where you can't restrict yourself from purchasing each and every item you see, then keep your card at home. Stash cash in your wallet and carry it while leaving house. This way you'll be purchasing only what your financial health permits.

Tip no 3 - Choose the debt solution that you find the best to solve your debt problems.

When you go to a store for buying an item for yourself, you don't grab anything that pleases your eye. You purchase only that item which fits your requirement. Similarly, when you're looking for a solution to your debt problems, you should not opt for a debt relief option without analyzing your financial situation. Evaluate your income, expenses, budget, savings, debt payments, etc. Thereafter, calculate how much you've to pay to the debt relief companies every month. Find out how much you'll save through various debt relief options. Use a debt calculator to do the needful calculations. Then only you can find the best debt solution to your existing problems.

Tip no 4 - Buy child health plan to keep your children protected.

If you're really a responsible parent, then do purchase a child health insurance plan for your kid. This is because a child health insurance plan offers a lot of services. Some of them are – regular health check-ups, vaccinations, eye and dental care, coverage for expenses incurred when undergoing medical treatment in hospital, etc.

The cost of children health insurance plan is reasonable. In some states, parents are required to pay a charge every month. However, the total cost is within 5 percent of the family’s monthly earnings.

Child health insurance plan exist in different states in various names. The eligibility criteria may slightly differ from state to state. Gather knowledge about the health insurance plan to offer proper protection to your children.

Tip no 5 - Maintain good credit score so as to take out a home loan at an affordable interest rate.

A good credit score is must for securing mortgage at low interest rates. You can forget about getting low interest on conventional mortgage with a poor credit score. You need to have a minimum credit score of 720 so as to be eligible for conventional mortgage. In case of FHA mortgage, you should have a credit score of around 620.

Keep it in mind that the higher your credit score is, the better is your chances of striking a good mortgage deal. Always pay your bills within the last payable date. Never borrow more than your affordability. Don't commit costly credit mistakes. These tips will help you maintain a good credit score.