5 Financial tips for the first week of October 2011

Listed below are the 5 financial tips for the first week of October 2011

Tip no 1 - Use electricity judiciously to save money on utility bills.

Judicious use of electricity can help you save money every month. Turn off the lights when you don't need them. Unplug the electrical devices (computer, coffee maker, tv, etc.) when you are not using them. Purchase energy efficient bulbs and use them in your house. This may help you save as much as $20 on your utility bill. You can also use power adapters as they consume less energy. This will help to slash your electricity bill. Another wide idea will be to use a candle in the bathrooms. A single candle can light up your bathroom easily.

Tip no 2 - Go green and save money.

This tip can help you lessen the current environmental problems as well as save money. For example, you can share your ride with another person. It is said that an average American spends around $26 on the gas bill every week. If you share your ride with a neighbor, then both of you will be able to save about $650 in a year. Another tip will be to reuse items instead of dumping them into the garbage. This will help you utilize the resources used to make the item efficiently.

Tip no 3 - Buy generic items whenever possible instead of going for brands.

Purchasing generic items is a good way to save money. You can get generic items at a cheap price. You'll be able to a purchase a large number of products by spending a small amount of money. However, if you go for branded items, then you'll be able to get only a few products within the same amount.

Some of the consumers think that that the quality of the branded items is extremely good. However, this notion is not completely true. A community member states that her daughter used to love eating a bread of a particular company. Her daughter simply refused to eat the bread of any other company. One day, the community member served her a bread of a cheaper store brand. She told her daughter that the bread is from her favorite company. The daughter could not find any difference and ate the bread quite happily.

Tip no 4 - Understand the importance of money and spend it only when needed.

Useless spending of money is one of the biggest financial mistakes on the earth. It can lead you to financial problems and your credit can be completely ruined. It is the duty of the guardians to make the children understand the importance of money in life. This will help the children to use money judiciously when they become adults. They can avoid making foolish financial mistakes in life.

Spend your hard earned money only when it is required. Differentiate between the luxuries and the necessities. Make it a point to spend more money on the necessary expenses rather than the luxury ones.

Tip no 5 - Ask your child to plan the family budget.

It is a great way to make your child understand the value of money. Usually, children don't have any idea about how a family budget is planned or what are the areas where your family spends the maximum percentage of the income. However, when your child is given the responsibility to plan the family budget, he/she gets to know about the importance of money in day-to-day life. Your child will also learn how to manage personal finances efficiently. This experience will definitely help your child when he/she attains adulthood. He/she will be able to tackle money matters without getting into debt problems.