Bird In Hand

The Bird In Hand: A Strategy for Financial Success

When it comes to financial planning, there are countless strategies and approaches that individuals can adopt to secure their future. One such strategy that has gained popularity over the years is the “Bird In Hand” approach. This approach, coined by economist and Nobel laureate, Merton Miller, suggests that individuals should prioritize the assets they currently possess rather than relying on uncertain future outcomes. In this article, we will explore the concept of the Bird In Hand strategy, its benefits, and how it can be applied to achieve financial success.

Understanding the Bird In Hand Strategy

The Bird In Hand strategy is based on the idea that it is better to focus on the tangible assets and resources one currently possesses rather than relying on future uncertainties. This approach emphasizes the importance of cash flow, current income, and existing investments as the foundation for financial planning.

According to Miller, the Bird In Hand strategy is rooted in the concept of risk and return. He argues that individuals should prioritize the certainty of current assets and income streams over the potential returns of future investments. By doing so, individuals can mitigate the risks associated with uncertain future outcomes and ensure a more stable financial future.

The Benefits of the Bird In Hand Strategy

1. Stability and Security:

  • By focusing on current assets and income, individuals can create a more stable and secure financial foundation.
  • Having a reliable cash flow can provide a sense of security, especially during times of economic uncertainty.

2. Flexibility:

  • By prioritizing current assets, individuals have more flexibility in making financial decisions.
  • They are not solely dependent on future returns and can adapt their financial plans based on changing circumstances.

3. Reduced Risk:

  • The Bird In Hand strategy helps individuals mitigate the risks associated with uncertain future outcomes.
  • By focusing on current assets, individuals are less exposed to market volatility and potential losses.

Applying the Bird In Hand Strategy

1. Assess Your Current Assets:

Start by evaluating your current assets, including cash, investments, and income streams. Determine the value and stability of these assets to understand your financial foundation.

2. Prioritize Cash Flow:

Focus on creating a reliable cash flow by maximizing your current income sources. This may involve exploring opportunities for career advancement, negotiating salary increases, or diversifying income streams.

3. Build a Strong Emergency Fund:

Having an emergency fund is crucial when following the Bird In Hand strategy. Aim to save at least three to six months' worth of living expenses to provide a safety net in case of unexpected financial challenges.

4. Diversify Your Investments:

While the Bird In Hand strategy emphasizes current assets, it does not mean completely ignoring future investments. Diversify your investment portfolio to balance risk and potential returns. Consider a mix of low-risk and high-risk investments based on your risk tolerance and financial goals.

Case Study: The Bird In Hand in Action

Let's consider the case of Sarah, a 35-year-old professional who adopted the Bird In Hand strategy. Sarah focused on maximizing her current income by taking on additional freelance projects and investing in her professional development. She also built a strong emergency fund to provide financial security.

By prioritizing her current assets and cash flow, Sarah was able to weather a period of economic downturn without significant financial stress. She had a stable income stream and a safety net to rely on, which allowed her to focus on long-term financial goals rather than short-term financial survival.


The Bird In Hand strategy offers a valuable approach to financial planning by prioritizing current assets and income over uncertain future outcomes. By focusing on stability, flexibility, and risk reduction, individuals can create a solid financial foundation and achieve long-term financial success. Remember to assess your current assets, prioritize cash flow, build an emergency fund, and diversify your investments to effectively apply the Bird In Hand strategy. By adopting this approach, you can secure your financial future and have peace of mind knowing that you are building on what you already have.

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