5 Money Secrets You Should Know

Money may not bring happiness, but it certainly makes life easier. So, in these challenging times, how do you create a life that is free of financial stress? How do you meet your money goals and live a meaningful life? Here are five money secrets you should know to help you create a financial life that works for you.

1. Your Money is a Reflection of You

Your attitudes toward money shape your ability to achieve financial security. Suze Orman says that the most important thing is how you feel about your money and how you feel about who you are.

Your relationship to money drives three basic types of behavior: money avoidance, big spending, and self-denial. For example, suppose you grew up in a home where there were frequent arguments about money. In that case, you are likely to associate money with stress and do everything you can to avoid dealing with money (avoider). For example, you won’t create a budget and track your progress. Instead, you’ll let bills pile up, so you don’t have to deal with balances. On the other end of the spectrum, if you hold self-limiting beliefs about your worth, you’re likely to deny yourself opportunities to earn more money and to save (self-denial). 

The good news is that you can change your relationship with money and create a healthy life of financial security. Remember: money is a tool. That is all. It has no inherent meaning other than what we give to it. So connect with money's utility and approach it primarily as a way to achieve long-term goals. 

2. Your Money Should Work for You

Everyone is working for money, but the only way to build a secure financial future is to make your money work for you. Of course, you still need to work as an employee, entrepreneur, or both. But one of the top money secrets is to put your money to work for you. What does this mean? It means that your first priority is using money as a tool to help you achieve your most-valued long-term goals — instead of merely satisfying your short-term whims. 

It may be hard to imagine the future and make that vision compelling, but imagine this: a family crisis hits, or your car craps out, or you have a medical emergency. And you're fine — because you have been saving for this moment, so that one crisis would not lead directly into another, financial crisis. You are also saving for debt reduction, retirement, maybe your kids' college tuitions, and so much more. Figure out how to make those needs and wants as concrete as that new TV staring at you at the electronics store. Set goals, then build step-by-step automated savings plans as to how you're going to get there.

3. Constantly Look for Ways to Have More Money

Loyalty has no place when it comes to having money for your goals. For example, car insurance: are you shopping around to determine if you’re still getting the best deal? Experts suggest that you should compare your car insurance rates twice a year. The chances are excellent that you can get a better deal. EverQuote is a website that makes it easy for you to do comparison shopping. As a result, you could save hundreds of dollars that you can put to work for you.

You can also often successfully negotiate bills that seem "fixed" like internet service or cell phone service. Research until you find the best competitive offer in the marketplace — then call your provider and ask if they will match that offer in order to keep you as a customer. 

4. You Don’t Have to be Rich to Invest

Another way to put money to work for you is by investing it. But many people think that you have to be rich before you can start investing. True, you want to prioritize your emergency and retirement savings goals. Still, any extra money in your monthly cash flow should go into investments. Meet with qualified investment counselors to find the most suitable mutual fund. Alternatively, use one of the trending investment apps like Robinhood or Acorns that is placing investment power into the hands of consumers like you.

5. A Good Credit Score is Your Ticket to Saving Money

Doing everything you can to keep a good credit score is one of the top money secrets held by successful consumers. At some point in life, you’ll want to apply for financing. A good or excellent credit score will net you the best terms, saving you thousands of dollars in interest payments.

Bottom Line

So, what are the top money secrets to help you reach your financial goals?

• Examine your relationship with money
• Pay yourself first
• Be a conscious consumer
• Start investing as soon as possible
• Maintain a good credit score