Counterintuitive Financial Moves You Should Consider

Counterintuitive Financial Moves You Should Consider
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When someone tells you to stop saving for retirement but instead focus on creating a healthy cash flow, you might raise your eyebrows. That’s certainly not what most financial experts recommend and certainly not what you’ve been doing all these years. These counterintuitive financial tips, however, are not to be immediately discarded. If you take time to consider the pros and cons, they actually make sense and might even work wonders for your finances in the end.

Here are some of the most common counterintuitive financial moves worth looking at:

Don’t save for retirement

When some financial experts say don’t save for retirement, they are not saying you shouldn’t save at all. You should invest just enough on your retirement funds but make sure you don’t tie up most of your savings into them. Avoid putting money on restrictive savings accounts such as your retirement fund because you are only subjecting your money to less flexibility.

Opt for a smaller house

During the housing boom in the early 2000s, people bought bigger house because they can afford them. They opted for houses at the highest end of what their income allows them because that’s what financial advisers recommended. Unfortunately, it turned out that their choice was a financial disaster once the economy hit its turbulent times. Those with smaller houses came out ahead in the end.

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Ditch stock investments

For financial advisors, stocks are like the go to investment mediums if you want higher returns for your money. If you are the type who takes high risks in order to earn higher returns than the average investors, you may consider stocks as the best investment options in the market too. The problem with this mindset, however, is the fact that you may not endure the financial loss in case the market doesn’t go your way. The trick is not exactly to ditch stocks but rather avoid getting too caught up with investment strategies.

Focus on your income stream

Rather than focusing too much of your energy on saving for retirement or learning investment strategies, some financial experts recommend focusing on creating or building an income stream that will provide a perpetual source of sufficient funds to support your lifestyle. The key is to find an investment opportunity that will pay you cash continuously over time. You may invest in real estate, for instance, so you can expect to receive rent payments month after month. You may also write a book which will pay out royalties through the years.

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