by Sithambaranathan Prithiviraj

Created on: September 03, 2008

Non-salaried persons are small business people and some professionals who work in their own. Their income is not fixed and may vary from time to time. There fore if they are not making investments which are risky then they may end up in financial insecurity.

Most important for non-salaried persons is to use the credit card wisely and only use them when they don't have enough liquid funds in their current or savings account and pay the debt within the interest free period. As far as possible if they can pay extra and wipe out the debts when they have an extra income it is a wise investment because they save on the interest rate which is variable and can save a lot of money.

The second most important a non-salaried person can do is to have a saving account and save money rather than living on debt or on credit because they can reduce the interest on debts which are unnecessary. This is the most important investment strategy for a non-salaried person. Avoid to invest in shares if you are not familiar with investing in shares even though it can give a high rate of return. Beware of the risk of investing in shares.

It is also prudent to invest some of your money in bonds. However, get professional advise and get advise from the bank regarding the interest rate and the terms of the bonds because if you don't do your research then you may lose money on this investment strategy. If the investment is done with sound advise and consideration then it is a wise investment for non-salaried people.

Another most important investment option is to invest in mutual funds and certificate deposit as they give excellent returns with comparatively less risk than investing in shares or in real estate. This strategy also is vital to increase your wealth not investing aggressively to boost wealth in the short-term but lose money because of high risk. The secreat is to mange risk and maximize returns of your hard earned money.

If these strategies are comprehensively taken as package and always review and adjust as financial circumstances change then these above mentioned strategies will improve you financial security as well in the long-term increase your wealth and avoid being living on debt and paying unnecessary interest, which can be avoided. That is, for a non-salaried person in a financial perspective, is to live within your means and not to live extravagant, which most probably end up in financial ruins.

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