Top 17 Counterintuitive Financial Habits to Try for Retiring a Decade Earlier Than Your Peers
We all know the standard advice for a healthy financial future: save 15% of your income, cut back on lattes, and diligently pay down your mortgage. It’s solid, sensible advice that will, for most people, lead to a comfortable retirement around age 65. But what if "comfortable" and "age 65" aren't ambitious enough for you? What if you want to reclaim an entire decade of your life?
Retiring ten years earlier than your peers isn’t about being ten times more frugal. It's not about subsisting on rice and beans or never taking a vacation. It's about a fundamental mindset shift. It requires you to challenge the conventional wisdom you’ve been taught your whole life and adopt a set of habits that might seem strange, backward, or even irresponsible to the casual observer. These are the secrets of the FIRE (Financial Independence, Retire Early) movement, refined for those who want to accelerate their journey without sacrificing their sanity.
This isn't about get-rich-quick schemes. It's about playing the long game with a different set of rules. It’s about understanding that your most valuable assets aren't just in your investment portfolio; they are your time, your skills, and your ability to think critically. So, if you're ready to challenge the status quo and build a life of financial freedom sooner than you ever thought possible, let's dive into the 17 counterintuitive habits that can get you there.
1. Focus on Earning More, Not Just Saving More
We're often told to clip coupons and cut expenses to the bone. While frugality is a cornerstone of personal finance, it has a mathematical limit. You can only cut your spending down to zero. Your earning potential, on the other hand, is theoretically limitless.
Instead of spending hours each week trying to save a few dollars, redirect that energy toward increasing your income. This could mean negotiating a raise, developing a high-value skill, starting a side hustle, or building a small business. While your peers are debating the merits of a generic vs. brand-name product, you’re building an asset that can generate thousands more per year.
Actionable Tip: Dedicate five hours a week—the time you might spend watching a few movies—to a skill that can increase your earnings. This could be learning to code, getting a digital marketing certification, or taking a public speaking course. The ROI on yourself is often the highest you'll ever get.
2. Automate Your "Fun" Spending First
Traditional budgeting advice tells you to pay your bills, save for retirement, and then see what's left over for fun. This often leads to guilt and burnout. You either feel bad for spending on yourself or you feel deprived, which can lead to "binge spending" later. The counterintuitive approach is to flip the script.
Set up an automated transfer to a separate checking account labeled "Guilt-Free Spending." This is your budget for dinners out, hobbies, and vacations. Once that money is allocated, you can spend it without a second thought because you know all your important financial goals are already being met by your primary accounts. This turns spending from a source of anxiety into a planned reward system, making the entire financial journey more sustainable.
Actionable Tip: Open a fee-free checking account and label it "Fun Fund." Calculate 5-10% of your take-home pay and set up an automatic transfer for every payday. That's your money to enjoy, 100% guilt-free.
3. Seriously Consider Renting Over Buying
The idea that renting is "throwing money away" is one of the most pervasive financial myths. While homeownership can be a great way to build wealth, it's not always the best financial move, especially for those seeking flexibility and early retirement. The true cost of owning includes property taxes, insurance, maintenance, repairs, and the massive opportunity cost of your down payment.
In many high-cost-of-living areas, the total cost of owning is significantly higher than renting a comparable property. By renting, you can invest the difference—including the hefty down payment you didn't have to make—into assets like index funds that historically have a higher rate of return and are far more liquid than real estate. This strategy allows your capital to work harder for you, accelerating your path to financial independence.
Actionable Tip: Use a "buy vs. rent" calculator online. Be honest about all the inputs: maintenance (a realistic 1-2% of the home's value annually), property taxes, and potential investment returns. The results might surprise you.
4. Embrace "Good" Debt
We're conditioned to see all debt as a four-letter word. While high-interest consumer debt (like credit cards) is a wealth-killer, not all debt is created equal. "Good" debt is money you borrow at a low-interest rate to purchase an asset that is likely to appreciate or generate income. This is called leverage.
Think of a mortgage on a rental property. You might put down 20% and a bank finances the other 80%. You get 100% of the appreciation and rental income, but you only put up a fraction of the capital. The same concept can apply to a low-interest business loan used to start a profitable venture. Using debt wisely to acquire assets is one of the fastest ways the wealthy build their fortunes.
Actionable Tip: Before taking on any debt, ask yourself: "Will this purchase put money in my pocket or take money out of it?" If the debt is used to acquire an income-producing or appreciating asset, it could be a strategic move.
5. Pay for Convenience to Buy Back Your Time
The ultra-frugal mindset dictates that you should do everything yourself to save a buck. Mow your own lawn, cook every meal, clean your own house. But here's the truth: your time is a finite and incredibly valuable resource. If you can earn $100/hour as a freelance consultant, does it make sense to spend two hours cleaning your house to save the $60 a cleaning service would charge?
By strategically paying for services that free up your time, you can reinvest those hours into activities with a higher ROI. This could be your career, your side hustle, your health, or quality time with your family—all of which contribute to a richer life and, often, a higher net worth.
Actionable Tip: Identify one time-consuming, low-value task you dread. Whether it's grocery shopping, laundry, or meal prep, try outsourcing it for one month. Use the time you save to work on a project that either makes you money or brings you significant joy.
6. Talk Openly About Money
Money is one of the last great taboos in our society. We're taught it's rude to discuss salaries, investments, and net worth. This financial silence only serves to keep people in the dark, repeating the same mistakes and missing out on valuable opportunities.
Breaking this taboo (with trusted friends, mentors, or partners) creates a powerful feedback loop. You can learn what investment strategies are working for others, discover salary benchmarks in your field, and share both your wins and your losses. A small group of financially-minded peers can serve as a personal board of directors, holding you accountable and pushing you to achieve your goals faster.
Actionable Tip: Find one person you trust and propose a "money check-in" once a quarter. You can share your goals, progress, and any challenges you're facing. You’ll be amazed at how much you can learn.
7. Choose a High-Deductible Health Plan (HDHP)
Conventional wisdom says to get the health plan with the lowest deductible and co-pays. But for many young, healthy individuals, an HDHP coupled with a Health Savings Account (HSA) is a secret retirement weapon. An HSA is the only investment account that offers a triple tax advantage.
Your contributions are tax-deductible, the money grows tax-free, and withdrawals for qualified medical expenses are also tax-free. After age 65, you can withdraw the money for any reason, and it's simply taxed as ordinary income—just like a traditional 401(k). Many people use it as a supercharged retirement account, paying for minor medical expenses out-of-pocket and letting their HSA balance grow untouched for decades.
Actionable Tip: During your next open enrollment period, compare the total annual cost (premiums + max out-of-pocket) of your PPO vs. an HDHP. If you're healthy, you'll often find the HDHP is cheaper, and you gain access to the powerful HSA.
8. Stop Diversifying Too Much
"Don't put all your eggs in one basket" is good advice, but many investors take it to an extreme, resulting in "diworsification." They own dozens of mutual funds and hundreds of stocks, thinking they're safe. In reality, their portfolio is so diluted it's guaranteed to produce only average returns, often while paying high fees.
Early retirement requires above-average growth. This doesn't mean yolo-ing into a single meme stock. It means building a more concentrated portfolio of high-conviction investments that you understand deeply. For most people, this could be as simple as a few low-cost, broad-market index funds (like a Total Stock Market fund and an International fund). You get plenty of diversification without the complexity and mediocrity of owning a little bit of everything.
Actionable Tip: Review your portfolio. If you have more than 5-7 funds, ask yourself if each one serves a distinct purpose. Consider consolidating into a simple, three-fund style portfolio to lower costs and complexity.
9. Treat Your Career Like a Business
Most people view their job as a place they go to trade time for a paycheck. High-achievers view their career as a business: "Me, Inc." You are the CEO, and your employer is your biggest client. This mindset shift changes everything.
As CEO of Me, Inc., you are responsible for product development (your skills), marketing (your network and resume), and sales (negotiating your salary). You should always be aware of your market value and be willing to switch "clients" (employers) if another company is willing to pay more for your services. The biggest raises rarely come from annual 3% cost-of-living adjustments; they come from job-hopping every 2-4 years.
Actionable Tip: Update your resume and LinkedIn profile every six months, even if you're happy in your job. Take a call from a recruiter once a quarter to stay informed about your market value.
10. Ignore Mainstream Financial News
Watching financial news channels or reading daily market commentary is one of the worst things you can do as a long-term investor. The media's business model is built on clicks, fear, and urgency. They amplify short-term noise and encourage emotional, reactive decisions like panic-selling during a downturn or piling into a hot stock at its peak.
Truly successful investors operate on a timeline of decades, not days. They build a sound investment plan based on their goals and risk tolerance, and they stick to it. They automate their investments and tune out the daily noise, knowing that market volatility is a normal part of the process.
Actionable Tip: Unsubscribe from market newsletters and delete the stock-tracking app from your phone's home screen. Commit to checking your portfolio no more than once a quarter.
11. Increase Your Lifestyle Inflation... Strategically
The FIRE movement often preaches keeping your lifestyle the exact same as your income grows, funneling every extra dollar into investments. While effective, this can be a recipe for burnout. A more sustainable, counterintuitive approach is to allow for strategic lifestyle inflation.
This means for every raise or bonus you get, you follow a set rule. For example, 50% goes to investments, 30% goes to long-term goals (like a house down payment), and 20% goes to upgrading your current lifestyle. This creates a powerful psychological reward system. You get to enjoy the fruits of your labor along the way, which keeps you motivated for the long haul.
Actionable Tip: The next time you get a raise, pre-emptively decide where the new money will go using a 50/30/20 rule (or similar). Automate the investment portion so you're not tempted to spend it all.
12. Don't Pay Off Your Low-Interest Mortgage Early
It feels amazing to be debt-free, and the psychological win of paying off your mortgage is huge. Financially, however, it's often a suboptimal move if your interest rate is low (e.g., under 5%).
The stock market has historically returned an average of 7-10% per year. By putting extra money toward a 3% mortgage, you are essentially choosing a guaranteed 3% return. You would likely be better off investing that extra money in a low-cost index fund, where it has the potential to grow at a much higher rate. This "arbitrage" can add up to tens or even hundreds of thousands of dollars over the life of the loan.
Actionable Tip: If you have a low-interest mortgage, take the extra payment you would have made and invest it in a brokerage account instead. You'll build wealth faster while still meeting your mortgage obligation.
13. Take More (Calculated) Risks When You're Young
When you're in your 20s and 30s, your single greatest financial asset is your time horizon. You have decades for your investments to compound and recover from any market downturns. A market crash at 25 isn't a disaster; it's the single greatest buying opportunity you'll have in your life.
This means you can and should take on more calculated risk than someone nearing retirement. This might mean allocating a higher percentage of your portfolio to stocks, investing in growth-oriented sectors, or even starting a business. Being too conservative when you're young is a surefire way to miss out on the power of compounding and end up working longer than you need to.
Actionable Tip: If you are more than 20 years from retirement, consider an asset allocation of 90% or even 100% in stocks (primarily through broad-market index funds). You can gradually add bonds as you get closer to your retirement date.
14. Invest in Yourself Aggressively
Many people hesitate to spend a few thousand dollars on a professional certification or a leadership course, but won't think twice about spending that on a vacation. The truth is, the highest-return investment you can ever make is in your own skills and knowledge.
Unlike stocks, which can go to zero, the skills you acquire become a permanent part of you. They increase your earning potential for the rest of your life. As my colleague Goh Ling Yong often emphasizes, investing in your human capital pays dividends that compound year after year, far outpacing most traditional investments.
Actionable Tip: Set an annual "personal development" budget. This could be for books, online courses, conferences, or a personal coach. Track the return on this investment through raises, promotions, or new business opportunities.
15. Create a "Quitting Fund"
Everyone knows about an emergency fund—3 to 6 months of living expenses set aside for unexpected job loss or medical bills. A "Quitting Fund" is different. This is 1 to 3 months of expenses kept highly liquid, with the express purpose of giving you the freedom to walk away from a toxic job, a bad boss, or a career path that's making you miserable.
Being trapped in a soul-crushing job not only harms your mental health but can also stagnate your career and income growth. Having a Quitting Fund transforms your mindset from one of dependence to one of power. It gives you the confidence to negotiate harder, take on riskier projects, and ultimately find a role that is both more fulfilling and more lucrative.
Actionable Tip: Open a separate high-yield savings account and label it "Freedom Fund." Start funding it, even with just $50 a month. Just knowing it's there can change your entire outlook on your career.
16. Sell Your Winners Periodically
It's tempting to fall in love with a stock or fund that has performed exceptionally well and let it ride. However, if a single investment grows to become a disproportionately large part of your portfolio, it introduces significant concentration risk. If that one stock crashes, it could devastate your net worth.
The disciplined approach is to rebalance your portfolio on a regular basis (e.g., annually). This means selling some of your best performers that have grown beyond your target allocation and reinvesting the proceeds into your underperforming assets. This forces you to systematically "sell high and buy low," which is the key to long-term investment success.
Actionable Tip: Set a calendar reminder to review your portfolio's asset allocation once a year. If your stock allocation has grown from a target of 80% to 90%, sell 10% of your stocks and buy bonds to get back to your original target.
17. Prioritize Experiences That Compound
The "experiences over things" mantra is popular, but not all experiences are created equal. Spending $2,000 on a weekend of partying in Las Vegas provides a fleeting memory. Spending that same $2,000 to attend an industry conference could land you a new client or a better job, providing a return for years to come.
Prioritize "compounding experiences"—those that build your skills, expand your network, improve your health, or create lasting memories that strengthen your relationships. These experiences are investments, not just expenses. They add value to your life long after the money is spent and often contribute directly or indirectly to your financial goals.
Actionable Tip: Before making a large discretionary purchase, ask: "Will this experience add lasting value to my life or skills, or is it just temporary consumption?" Lean towards the former.
Your Turn to Redefine the Rules
The path to retiring a decade earlier isn't a secret formula; it's a series of intentional, often counterintuitive, choices repeated over time. It's about rejecting the passive financial script society hands you and actively designing a life of freedom. The principles Goh Ling Yong's community stands for are rooted in this kind of proactive, intelligent financial management.
You don't have to adopt all 17 of these habits overnight. Start with one or two that resonate most deeply with you. The goal isn't perfection; it's progress. By challenging conventional wisdom and thinking like an owner of your own financial destiny, you can build a future where work is optional, and your time is truly your own.
Now, I want to hear from you. Which of these habits surprised you the most? What is one counterintuitive financial step you've taken that has paid off big time? Share your thoughts in the comments below!
About the Author
Goh Ling Yong is a content creator and digital strategist sharing insights across various topics. Connect and follow for more content:
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