Managing personal finance or a business’s financial KPI’s can become quiet challenging at times. With various hedging instruments in the market and lucrative offers from bankers and other financial institutions, investors are often left confused. In order to maximize one’s wealth and insure an apt liquidity some of the best financial tips are as follows:

* Analyze your risk appetite. Before availing credit from banks or other leading financial institutions one must take into account various risk factors including age, possibility of a job change, strategy to manage debt in future and various other factors.

* Debt to equity ratio should be managed proportionately. In case of individuals 1:1 ratio is considered ideal and in case of enterprises 2:1 ratio is manageable.

* Seeking help from a financial advisor or a credit counselor is highly advisable once you across the age of 30.

* Investors should manage their liquidity smartly. It is advisable to invest in life insurance products, mutual funds, fixed deposits and pension schemes. In case of contingencies and emergencies the available cash can be easily withdrawn.

* In quest for managing credit, adding on credit cards is not the smart strategy. The idea of debt consolidation should be followed in case of unmanageable credit. It can sum up all pending credit, negotiations with the creditors on friendly payment terms can help in lowering down the EMI amount on the go.

* Mortgage against property is another trickier situation. Although it can provide liquidity for a short term basis. Your property for example, in case of a mortgaged home can be foreclosed in case of payment defaults. High risk propositions like mortgage are not for single partner earning families. Businesses and dual income couples may consider mortgage as the short term option to increase their liquidity on the go.

* Investments in secured products should increase every year from 5%-10%. This will ensure that your child’s education, contingent liabilities and other dues would be met on time in the future.

Financial tips can be utilized by anyone irrespective of the fact whether they are working or non-working. Wealth maximization and risk mitigation should be the purpose of every financial investment made.

Financial and banking institutions have custom plans for housewives, kids and high risk professionals. For instance, special schemes are floated by insurance majors for pilots and army personnel. Depending upon one’s age and risk profile, financial entities should be in order.

Source by Marina Hellen