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In the realm of personal finance, sometimes taking a calculated risk can lead to substantial rewards. While traditional advice tends to favor a cautious approach, there are moments where stepping out of your comfort zone can prove to be highly beneficial. Here are 15 financial moves that might sound risky at first glance but can pay off big in the long run.
Investing in High-Risk Stocks
Investing in high-risk, high-reward stocks, such as startups or tech companies, can be volatile but potentially profitable. This move requires thorough research and a tolerance for risk, but it can lead to significant returns.
Starting Your Own Business
Starting a business comes with uncertainty, but it also offers the potential for substantial financial rewards and personal fulfillment. It’s a path to potentially unlimited earnings and control over your career.
Buying Real Estate in Up-and-Coming Areas
Investing in real estate in areas that are not yet popular but have growth potential can be a smart move. These investments often come at a lower initial cost and can appreciate significantly over time.
Contributing to a Roth IRA
Opting for a Roth IRA over a traditional IRA can seem risky due to the lack of immediate tax deductions. However, the tax-free growth and withdrawals in retirement can be a significant advantage.
Negotiating a Higher Salary
Asking for a higher salary or better compensation during a job offer or review can feel risky but can significantly increase your lifetime earnings. It demonstrates confidence and understanding of your value.
Investing in International Markets
Diversifying your portfolio by investing in international stocks or funds can expose you to more risk but can also offer greater growth potential and diversification benefits.
Taking Out a Loan for Education
Taking on debt for education can be daunting but investing in your skills and knowledge can lead to higher earning potential in the future.
Moving to a City with More Opportunities
Relocating to a city with better job prospects or a higher cost of living can seem risky, but the potential career growth and increased earnings can justify the move.
Buying Stocks During a Market Downturn
Buying stocks when the market is down can seem counterintuitive, but it allows you to purchase shares at a lower price. This strategy can lead to significant gains when the market rebounds.
Refinancing Your Mortgage
Refinancing your mortgage to secure a lower interest rate can save you thousands over the life of your loan, despite the upfront costs and effort involved.
Investing in Alternative Assets
Investing in alternative assets like cryptocurrencies or commodities can be risky due to their volatility, but they can also provide high returns and diversification.
Taking a Sabbatical for Personal Development
Taking time off for personal development, education, or starting a business can be a gamble on your career but can lead to more fulfilling and potentially more lucrative opportunities.
Investing in Yourself
Spending money on personal development, whether it’s courses, coaching, or conferences, can seem like a luxury, but it’s an investment in your most valuable asset: yourself.
Quitting a Steady Job to Freelance
Leaving a steady job to freelance or consult can be risky due to the lack of stable income, but it can lead to higher earnings and greater career satisfaction.
Making a Career Pivot
Making a significant career change can feel risky, especially later in life, but following a path more aligned with your skills and passions can lead to greater financial and personal rewards.
Michelle Harler is the founder of Guide2Free, a website dedicated to finding and sharing freebies, product testing opportunities, and other ways to save money. With over a decade of experience in the industry, her expertise in finding quality offers makes Guide2Free an invaluable resource for anyone looking to try new products and save money.