Check out the 5 financial tips for the first week of October 2013.
Tip no 1: Protect your "money tree" by making the right financial decisions. Research and widen your knowledge base.
Your "money tree" is extremely sensitive. You need to make right decisions and take care of it properly. Rational financial decisions can be made only when you've adequate knowledge about the financial world. Subscribe to financial journals and newsletters and be acquainted with what's happening in the debt and credit industry. If you wish to invest in a property or commodity market, then get to know about the basic investment strategies. Find out how each market is performing before spending money.
If you're confused and need help, then post a question to an expert in financial forums before making a decision. Avoid making a decision in a hurry for this may not be good for your money tree.
Tip no 2: Cut down your expenses on vacations and lavish parties. Be real and have the guts to explain why you can afford to splurge.
Reduce your expenditures on family vacations and parties when you can't afford to splurge. You may get lots of invitations for parties and vacations in your life. However, this doesn't mean that you need to accept all the invitations. State the fact to everyone that you can't afford to splurge. Your friends may poke fun at you but they won't be there when you're in real problems. You would have to solve them on your own.
Ask your friends to have a potluck party. Invite your friends to your home and have a sumptuous party. This way you can enjoy with your friends and avoid wasting money.
Tip no 3: Be patient when you're trying to get rid of debt. Take a deep breath and develop a strategy to eliminate debts.
You haven't accumulated debts within a fraction of second. You have made mistakes and racked up debts gradually. So, it'll take time to pay down your debts also. Have patience and develop a strategy to pay off your debts one by one. You can start paying off your debts from that of the smallest balance to the largest balance. This will create less pressure on your budget. However, if you have already saved a substantial amount, then you can start paying off the debts from highest interest rates to lowest interest rates. This strategy would help you get out of debt within a comparatively short period of time.
Tip no 4: Change your habits and mindset when you're in debt. Old habits are no longer good for your finances.
There is a proverb called "old habits die hard" which means that it is difficult to change your current habits. However, if your old habits are not helping you to improve the condition of your financial life, then it is better to change those habits. It'll be hard to replace the old habits with new ones. After all, you've got accustomed to those habits for so many years. Nevertheless, if you're determined and ready to adopt a new lifestyle, then it won't be that difficult to change the habits. What you really need to do is have a positive outlook towards life.
Tip no 5: Spend your money on the right things to reduce your student loan debt. Watch out for discounts to save money and pay off your debts quickly.
When you're in college, your motto should be to spend less and save more. You can do this by not spending on the wrong things such as parties, alcohol, designer clothes, buffet meal plans, etc. Spend money where it is absolutely necessary. Check out the discounts available to the students. Get your student identity card and take advantage of them to save money. For instance, you can get discounts on fast foods served at Subway and Dairy Queen.
Browse through your school's website and find out the list of stores that offer discounts to students. You can even ask an employee of your school to know about the stores where you can get discounts on various products.