Here are the 5 financial tips for the 2nd week of September 2011:

Tip no 1 - Beware of 0 percent teaser rates.

Many a times, consumers opt for the balance transfer cards that come with 0% rates. They consolidate all their unsecured debts into a 0% interest card when they are unable to make payments on the high-interest cards. However, these consumers get into massive debt problems after a year or so. This is because the 0% interest rate is only applicable for around 6-12 months. The credit card companies double or triple the interest rate after the expiration of the promotional period. As such, it becomes extremely difficult for the consumers to pay such a high interest rate. Most of them are enter into the debt cycle as they are unable to keep up with the payments.

Tip no 2 - Once you get an accurate picture of your personal finances, you should figure out your short and long term goals.

You can get the correct picture of your personal finances by calculating your monthly income and expenses. Once you have a clear idea about your financial standing, you should decide upon your short and long term goals. If your total monthly savings is $200, then your short term goal can be to make a down payment on the auto loan. Your long term goal can be to save the amount every month. You can save this amount in your checking account. You can use this amount for meeting the college expenses of your children.

Tip no 3 - Build an emergency cushion on which you can fall back as the credit downgrade will push up the interest rates on loans.

It is said that the credit downgrade will compel the lenders to hike the interest rates on the personal, auto and mortgage loans. The interest rates on the credit cards are also expected to increase. As such, it has become important for the consumers to build an emergency fund now. They can use this fund to meet their various expenses without relying on the loans. Investors should invest in the stock market cautiously. The US market is expected to crash at the end of this year. It is best to invest money on good stocks only.

Tip no 4 - Visit multiple stores to get the best deals.

Before taking out a payday loan or a home loan, you should shop around the market for grabbing the best deal. There is no guarantee that the lender of your locality is offering the best deal. After conducting a quick market survey, you may come to know that the lender is charging far more than the others. In such a situation, you can simply take out the loan from the lender charging the lowest rate on the loan.

For instance, you go to lender A, B and C for a loan. Lender charges 15% interest on the loan. Lender B charges 10% interest rate and lender C charges 35% interest rate. You can seal the deal with the lender B and happily go back to your home.

Tip no 5 - Don't always go for life insurance without medical exam.

It is better to not always go for the life insurance policies without medical exams. This is because the premium rates on these insurance policies are comparatively higher than the others. This means that you'll have to spend a substantial amount for the premiums. The insurers will check your medical history too. They will check your medical information before approving your application. If they find that you have lied about your health problems or not shown the medical history correctly, then your policy can even be cancelled.