There’s no denying that building wealth takes time and effort—it’s a marathon, not a sprint, as the saying goes. While most good money advice—such as living within your means and keeping credit card debt low—is intuitive, many counterintuitive tips can help you achieve huge financial wins.

So, let’s dig into nine counterintuitive money tips that actually help you build wealth.

Being too frugal can cost you

One of the most counterintuitive tips I’ve learned is that being too frugal can cost you. Yes, frugality can be a virtue that helps you avoid overspending and get ahead. But I’m talking about being so miserly that you make unwise decisions that hurt you down the line.

For instance, neglecting your medical or dental health or preventive checkups could lead to substantial out-of-pocket expenses in the future, even if you have health insurance. While going to the doctor typically comes with an upfront cost, it’s essential for preventing potential problems that could become more costly or require time away from your work.

Being too frugal includes things like skimping on high-quality food, neglecting home repairs, and not seeking professional advice when needed. The idea is that minor issues typically become bigger and more expensive problems in the long run when not addressed promptly.

Another consideration is spending too much time trying to save tiny amounts of money. You could be undervaluing your time if you spend hours cutting coupons to save a few dollars or drive many miles for slightly less expensive gas. 

I recommend calculating the value of your time per hour after taxes. For example, if you earn $100,000 a year, you make just over $1,900 per week, and about $48 per hour, based on a 40-hour week. 

Let’s say after taxes, your net hourly rate is $40. If you spend an hour trying to save a dollar or doing something you could pay someone else to do for $30 an hour, you’re undervaluing your time. Sometimes, you’d be better off using that hour more productively to increase your income or just enjoy extra leisure time. 

While being mindful of your spending is always wise, it’s also crucial to know when you become so frugal that it’s hurting instead of helping your finances over the long run.

Spending more can help you save more

Another counterintuitive tip is that spending more—such as investing in quality shoes, appliances, and furniture that last longer—can be a smarter money move. Paying more for durable or energy-efficient items can help you save money over the long term.

For example, purchasing a fuel-efficient or electric vehicle will likely cost more upfront but give you savings over the life of ownership that far outweigh the extra initial expense. Likewise, buying energy-efficient home appliances or installing solar panels can be costly but cut your utility bills over time. In other words, consider the short- and long-term costs of high-dollar purchases.

In addition, purchasing everyday goods in bulk costs more upfront but typically results in a much lower price per unit. That applies to many items, from office supplies to soaps and non-perishable pantry items.

Buying insurance can save massive amounts

The purpose of insurance is to limit or eliminate financial risk. While some policies, such as auto insurance and homeowners, are required by your state or lender, you can voluntarily purchase many types of affordable insurance that come with outsized benefits. 

For instance, term life insurance gives your dependents financial security after your death. They could use the payout to replace your lost income, pay off a mortgage, or cover education expenses. If you’re in middle age and healthy, a 20-year policy for $500,000 might cost less than $300 a year. A million-dollar policy could be less than $800 a year. 

Travel insurance is another affordable policy with a massive payoff if there’s a natural disaster, accident, or loss when you’re on a trip. It covers problems before or during travel, such as trip delays or cancellations, lost baggage, and emergency medical coverage, including evacuation.

A couple more inexpensive policies are renters insurance and umbrella liability. Renters insurance covers some liability and pays for personal belongings lost or damaged after a covered event like a natural disaster, theft, or vandalism. On average, it costs less than $200 a year across the U.S., an excellent value.

Umbrella or personal liability insurance protects you beyond the limits of other policies, such as auto, home, and renters. For instance, you’re fully covered if you have $50,000 of auto liability and $500,000 of umbrella liability and get found at fault for $300,000 of injuries in a car crash. 

Your auto liability would pay $50,000, and your umbrella policy would pay the remaining $250,000. Otherwise, you’d be personally responsible for paying the remaining $250,000.

Umbrella liability coverage typically gets sold in half-million or million-dollar increments. Despite the high limits, the policies are quite affordable for the protection you receive. 

LISTEN ALSO: Travel Insurance–An Expert’s Guide to Finding the Best Policy

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Investing during market downturns is wise

When the financial market is down, it may seem counterintuitive to invest money in it. However, downturns are excellent opportunities to buy shares at much lower prices, like they’re on sale!

The best way to ensure you consistently invest, whether the markets are up or down, is by using a dollar-cost averaging strategy. You simply invest the same amount on a schedule, such as $100 weekly or $1,000 monthly. You’ll purchase more shares when prices are low and fewer when they’re high, smoothing out the impact of market volatility over time. 

Whether investing through a workplace retirement account, a traditional or Roth IRA, or a brokerage account, setting up automatic transfers is one of the best ways to build wealth. That ensures you consistently put money aside and leverage the power of dollar-cost averaging—even when the market dips.

Find out how seven beneficial IRS retirement-related adjustments for 2023 will help you cut taxes, save more money, and create a stronger financial future. Listen by clicking the player below.

Accepting a smaller paycheck could pay off

Taking a lower-paying job may seem counterintuitive for improving your finances. However, it could give you non-financial benefits that lead to more long-term wealth. 

For instance, if having a better work-life balance allows you to start a part-time side business, go back to school, commute less, work remotely, or take better care of your health, it could pay off more than taking a job with a higher salary you don’t like or with less flexibility.

Remember that deciding on a job offer isn’t just about the paycheck; consider the entire compensation package, including valuable benefits like education reimbursement, insurance, paid time off, and a retirement plan. And if a lower-paying job allows you to learn more, enjoy a better company culture, get more security, or have a clear path for career advancement, it might be worth the pay cut.

Paying your mortgage ahead of schedule isn’t always wise

While it might seem like a great idea to be completely debt-free, investing extra money instead of accelerating mortgage payments could lead to more wealth in the long run, depending on your mortgage interest rate and potential investment returns.

For instance, if you have a low-interest rate on your mortgage, such as below 5%, it makes sense to invest your extra money where it could earn more than 5%. Over the long run, the stock market has historically provided higher returns than current mortgage rates.

Plus, mortgage interest can be tax-deductible, allowing you to reduce your mortgage’s cost further, making it even more beneficial to pay on schedule and invest extra money, build emergency savings, or put toward higher-priority, high-rate debt.

Remember that prematurely paying off your mortgage means sacrificing liquidity because that money won’t be accessible quickly in a financial crisis. However, you’re in terrific financial shape once you have a healthy cash reserve, regularly max out retirement contributions, and eliminate all higher-rate debts. Only then should you focus on paying off your mortgage.

Renting may allow you to build wealth faster

The conventional wisdom is that buying a home instead of renting is better because you build home equity. Homeownership can be an excellent long-term investment with potential price appreciation and tax benefits. However, it’s not the best advice for everyone, depending on the housing market where you want to live. 

In many cases renting and investing the money you would have used for a down payment, closing costs, furnishings, and home improvements is a wiser option. A primary advantage is having the flexibility to move without the hassle of selling a home. If you expect to move within a few years for work or other reasons, the costs of buying and selling a home typically outweigh the benefits of homeownership. 

Additionally, renters get to skip ongoing maintenance and repair costs that can be unpredictable and substantial for homeowners. Many people prefer the ease and convenience of renting because it has fewer responsibilities and perhaps more amenities.

If you’re disciplined about investing, you might come out ahead by renting an affordable home and investing more than you would as a homeowner. Over the long term, your investment returns could outpace home appreciation.

While landlords can increase rents, renters generally get shielded from the risk of home price declines if there’s a real estate downturn, as we saw in the 2008 recession. The decision to rent or buy depends on the local economy, your current financial circumstances, and future plans.

Small savings can add up to massive results

It can be counterintuitive to believe you should save or invest when you can only set aside small amounts. Many people think they should wait until they earn more money or have a windfall to make progress on their financial goals. 

But it’s actually little financial habits that add up to significant results over time. So, the earlier you start saving, the more time your money has to grow. Even if you can only save tiny amounts regularly, that’s better than waiting to start because it can lead to significant long-term wealth.

As your income increases, try to increase the amount you save instead of raising your lifestyle expenses, known as “lifestyle creep.” Tiny money habits that may seem insignificant on their own can dramatically impact your ability to build wealth. 

Laura answers a listener’s question about how to invest extra cash after maxing out a retirement plan at work. Listen in this podcast player:

Lazy investing trumps active transactions

Lazy or passive investing is a long-term, buy-and-hold strategy where investors purchase a diversified mix of assets and largely leave them alone. For instance, you could buy one or more index funds or exchange-traded funds (ETFs) that track a broad market index, such as the S&P 500.

A passive strategy contrasts active investing, where you try to beat the market by frequently buying and selling individual stocks or other assets based on market predictions or analysis. 

Lazy investing usually costs less because passive funds, which require less management or research, charge lower fees, improving net returns over the long term. It also requires less trading, resulting in fewer capital gains, especially in taxable brokerage accounts, increasing your net returns.

Studies, such as the SPIVA® Scorecards and Dalbar, show that active investment managers don’t consistently outperform the market over the long term. That means passively managed index funds often deliver better returns than most active funds and require less time, effort, and financial knowledge for average investors to grow wealth over the long term.

Building wealth takes effort and usually happens slowly over time. By following intuitive and some counterintuitive financial tips, you can put yourself on the path to financial success.