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 spender, 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. 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. In addition, if your partner’s relationship with money is opposite to yours, you are likely to find yourself in constant arguments.
The good news is that you can change your relationship with money and create a healthy life of financial security.
2. 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 that your priority should be to put your money to work for you. What does this mean? It means that your first priority is you—your emergency savings, retirement savings, and debt reduction plan. Automating savings deposits is one way to ensure that your money goes to work for you rather than to purchases you don’t need.
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.
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 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.
So, what are the top money secrets to help you reach your financial goals?
- Examine your relationship with money
- Pay yourself first
- Be consumer conscious
- Start investing as soon as possible
- Maintain a good credit score.