Hi good people. I was inspired to write this post about money secrets you should know about by a small girl we met at the supermarket recently. The girl was about 8 years old (Gen Alpha) but her reasoning about money was amazing.  

While we were at the supermarket, my 19-year-old daughter and I stopped at the place where water bottles were. She wanted to buy a new water bottle because the one she had was leaking around the screw cap.

After looking at the different water bottles available, my daughter picked a water bottle from one of the popular brand names.

Suddenly, a small girl looking at lunch boxes with her guardian nudged my daughter.

My daughter looked at the little girl. The girl said, “Excuse me, may I advise you?” My daughter smiled, amazed and amused at the boldness of the little girl.

My daughter was all ears. The little girl said, “The water bottle you’ve chosen is expensive for nothing. I bought it some time back but it didn’t last.”

Then the little girl reached for another water bottle and said to my daughter, “I recommend this one. I have it. Although cheaper than the other one, it’s more long-lasting.”

My daughter thanked the girl. The little girl’s guardian and I smiled at each other. We purchased the water bottle the little girl recommended. We hope it’s as good as she claimed.

When we got home, I couldn’t help thinking about the little girl at the supermarket. I was amazed that she had discovered some money secrets at such an early age. I was very happy for her. If she keeps up, she will become a responsible, financially empowered woman.

Money Secrets You Should Know About For Your Own Good

Let me share some money secrets you should know about without further ado.

Money Secrets: Always Get Value For Your Money

Interestingly, this was the lesson the little girl was trying to teach my daughter. Always get value for your money.

The water bottle my daughter wanted to buy was expensive but not good (according to the little girl). So, my daughter would not get value for her money by buying that particular bottle.

Getting value for your money means getting maximum benefits for the amount you spend on something.

You can get value for your money by doing the following things:

• Doing some research: Find out as much as possible about something before paying for it. You can do so by reading reviews, comparing the features, comparison of prices, etc.
• Look for quality instead of brand: Sometimes some lesser-known brands have better or similar quality than popular brands. So, focus more on the quality of the service or product rather than the brand.
• Check for guarantees, warranties, and return policies: These offer added value for your money as they protect you against dissatisfaction and defects.
• Bargain: If possible, don’t be afraid to ask for better terms or bargaining. Interestingly many sellers are ready to negotiate, if only you ask.

Sometimes, Cheap Can Be Expensive

Another money secret you should know is that sometimes, cheap can be expensive. I mentioned above that some unknown brands can give you more value for your money than popular brands. However, I don’t advise you to always go for the cheapest offer.

You can save money when you purchase something cheap but could end up paying more in the long run.

Here are examples of how something cheap can cost you more in the long run.

• Low quality: The cheap thing could be of low quality. This means it’ll wear out or break quickly. You thus have to repair or replace it faster than something expensive but of better quality.
• Poor performance: A cheap thing could also perform poorly. You could end up feeling stressed and frustrated by your purchase.
• Hidden costs: Some things sound cheap but they have hidden costs. The hidden costs could include subscription charges, setup costs, shipping fees, etc. You end up paying more for your purchase in the long run.

Money Secrets: All That Glitters Is Not Gold

This secret applies to money and other things in life. It basically means that not everything that looks good, enticing, attractive, or valuable is actually worthwhile or valuable. In other words, don’t be deceived by the appearance of something or false promises.

So, look out for the following things before you purchase something that looks attractive or enticing:

• Hidden Flaws: That enticing appearance could hide defects or flaws that aren’t immediately obvious. They may become apparent as soon as you start using the thing.
• Imitations: Some attractive things could be imitations of the original. Look out for quality before you purchase.
• False Promises: Some enticing things could come with false claims or promises. Once you purchase, the seller doesn’t fulfill the promises. You thus lose money or get disappointed.

Money Does Not Grow On Trees

This is one of the greatest money secrets you should know about. It simply means that money is scarce. It does not grow on trees – if it did, you’d pluck it out of the tree effortlessly whenever you need it.

So, since money is scarce, you can only earn it through effort, hard work, investing, etc.

After understanding that money is scarce, it’s best to value any money you have. So, be prudent when spending this scarce resource.

So, don’t take your money for granted. It’s good to avoid frivolous or wasteful spending. Instead, treasure your cash, and spend it wisely and responsibly.

If you’re not careful with your money, it could get finished because it doesn’t grow on trees. 

Millionaires Do Not Always Look Like Millionaires

I love this money secret. It means that many millionaires spend and live modestly. Their lives are devoid of lavish spending or showing off.

Some millionaires even prefer to live below their means. Such people have discovered the money secret I mentioned earlier – money does not grow on trees.

So, avoid judging someone’s financial status based on what they own or how they look. In other words, true wealth is not always visible. 

In addition, if you’re wealthy, try to live quietly and modestly.

Money Secrets: Wealthy Is Quiet, Rich Is Loud, Poor Is Flashy

This money secret shocked me. It explains the way some people behave based on their financial status.

• Wealthy is quiet: Some truly wealthy people live a quiet, modest, and comfortable life. They avoid displaying their wealth conspicuously. They have financial security, so they don’t have to impress others or look for external validation.
• Rich is loud: Some rich people like to display their success through reckless spending and luxurious possessions. They want to gain recognition or social status.
• Recent riches: Some people who have become recently rich like to display their riches loudly. They are eager to let people know of their newly acquired status (rich).
• Poor is flashy: Some people struggling financially try to appear successful by being flashy. I think it’s “fake it till you make it” syndrome. They live beyond their means to fit in, impress others, or get validation.

So, be careful how you live your life. People can tell about your financial status from how you carry yourself.

Money Loves Speed

Money loves speed is a great money secret for everyone. It means that if you want to succeed, you have to make crucial financial decisions quickly and take speedy action.

You see, some good opportunities involving money are fleeting or short-lived. You might miss out on some opportunities if you don’t make financial decisions quickly and act with speed.

Remember, your competitors are making moves as you dillydally, plan, or procrastinate. Every second matters when it comes to making crucial financial decisions.

So, is there a life-changing financial decision you’re planning to make? Act with speed because money loves speed.

Money Secrets: You Can Be Asset Rich But Cash Poor

Another money secret you should know about for your own good is that you can be asset-rich but cash-poor. This happens to a lot of people.

It means you can have assets such as your own home, land, vehicles, collectibles, jewelry, etc, but you don’t have sufficient cash.

When you’re asset-rich but cash-poor, you may find it difficult to cater to your obligations or immediate expenses. Your life thus becomes very challenging. Has any of you ever experienced this? I have.

You see when you run out of cash money, you can decide to sell some of your assets. However, some assets don’t sell easily. Such assets include land, vehicles, etc. So, sometimes you remain cash-strapped as you try to sell an asset.

It’s usually a very distressing situation. In such situations, I urge you to comfort yourself by saying, “I’m asset-rich but cash-poor”.

On a serious note, it’s best to balance between liquidity and assets. When you do that, you don’t struggle with a lack of cash for your daily needs. You’ll live a more peaceful and happier life.

You can balance between liquidity and assets by investing in real assets such as land, houses, vehicles, etc. In addition, you invest in financial assets (things you can quickly turn into cash).

Examples of financial assets (things you can quickly turn into cash):

• Stocks/shares
• Bonds
• Money market accounts
• Treasury Bills (T-Bills)
• Exchange-traded Funds (ETFs)
• Certificates of Deposit (CDs)
• Index Funds

Your Social Network Is Your Net Worth

This money secret points to the importance of creating a wide network of people in society. This means you should have close ties with your nuclear family, siblings, relatives, neighbors, colleagues, social media friends, etc.

In other words, create a wide and close network of personal and professional connections.

Interestingly, your social network is as important as your assets. You see, your social connections and relations can impact your opportunities, success, and wealth in a big way.

Here are examples of why your social network is your net worth:

Your social networks can provide all kinds of support: Suppose you need financial, professional, moral, emotional, or any other support. In that case, your social networks can come through for you and make the problem lighter.

Your social networks can provide opportunities: It’s easier to get job opportunities, referrals, business deals, collaborations, or partnerships when you have a large social network. You get to know of opportunities in different places from your wide social network.

Here are some tips on how you can start growing your social network now:

• Join various groups: You can join community groups, clubs, gyms, churches, professional organizations, etc.
• Join social media groups: Join groups that tickle your fancy on Facebook, LinkedIn, etc.
• Attend social events: Dress up and show up at social gatherings such as weddings, seminars, conferences, parties, neighborhood cleanups, etc.
• Always help others: When you help people in a big or small way, they’ll reciprocate when you call on them.
•  Always stay in touch: This means checking on your connections regularly. When you do this, they’ll know you’re still in their network.

So, your connections and relationships are valuable to your life. I urge you to intentionally grow your social network from today onward. Thank me later (smiling).

The Best Time To Start Saving Was Yesterday; The Next Best Time Is Today

This money secret means that it’s never too late to start saving. It would have been good to start saving earlier (yesterday). When you start saving early, your savings have more time to grow through investments and interests.

However, since you can’t turn back the time, the next best time to start saving is now (today). If you delay further, you’ll not enjoy the benefits of saving. When you grow old, you might regret not having saved any money.

So, saving is an urgent priority. Avoid procrastination. Start saving today.

Money Secrets: Money Makes the World Go Round

This money secret is one of the harsh realities of life. You need money regardless of the part of the world you live in. The reason is simply because the world is money-driven. Almost everything costs money.

For example, you need money for your basic needs – food, shelter, and clothing. You need money for the services you use in your home such as water, gas, electricity, etc. You also need money for government and council taxes, security, waste collection – the list is endless.

This money secret should encourage you to work extra hard so that you don’t run out of money. The minute you run out of cash you become desperate and miserable because money makes the world go round.

Here are some things you can do to ensure you don’t run out of money:

• Work several jobs (if possible).
• Start saving now.
• Invest in real assets and financial assets.
• Create multiple sources of income.
• Live below your means.

Your Salary Should Not Be The Whole Story

This money secret means your salary is never enough to meet all your needs, expectations, or wants. You feel like your salary is insufficient regardless of how much you earn. This is true – your salary is never enough because money makes the world go around.

So, if you want to live a financially free life, your salary should not be the whole story.

In other words, it’s best to look for ways to supplement your salary.

One of the best ways a salaried person can earn extra income is by looking for passive income sources. Passive Income is money you earn without participating actively in a venture.

Here are examples of passive income you can earn to supplement your salary:

• Invest in rental properties.
• Invest in financial assets such as bonds, shares, Treasury Bills (T-Bills), etc.
• Dropshipping.

Money Secrets: Neither A Borrower Nor A Lender Be

This famous money secret is from one of William Shakespeare’s plays, Hamlet. It advises against lending or borrowing money, especially from your relatives or friends.

You see, lending money to friends or relatives could lead to tension or conflict. This could happen if the borrower doesn’t pay back in time or is unable to pay.  

In other words, lending money could break your relationships with your dear ones.

In addition, when you lend money to relatives or friends, you could lose it. Some of them may refuse to pay back, after all, you’re their friend or relative.

You should also avoid borrowing for the reasons I’ve stated above.

In addition, if you get used to borrowing, you could become financially dependent on others. This could affect your integrity and reputation.

In other words, you can maintain respectful and healthy relationships if you avoid lending or borrowing from relatives and friends. Your relationships will also last.

Money Secrets: Insurance Is Not A Luxury; It’s A Necessity

Many people have not yet discovered this amazing money secret. When doing your financial planning, please avoid classifying insurance as a luxury or something optional.

I urge you to look at insurance as a necessity.

You see, insurance can provide you with protection against unforeseen uncertainties such as:

• Sickness
• Accidents
• Damages to your property
• Theft of your property

Suppose you have no insurance and any of the things I’ve mentioned above happen? In that case, you’d have to pay from your pocket.

Some of these unexpected payments could lead to financial distress. Some of them are so costly that they could lead to financial ruin.

So, if you want peace of mind, include insurance in your annual financial planning. Insurance is a financial safety net. It’s a necessity, not a luxury.

Money Can’t Buy Genuine Love

I mentioned earlier that money makes the world go round – everybody in the world needs it. However, I strongly believe there are things money can’t buy, and genuine love is one of them.

As I mentioned in another post, you can only get genuine affection and love from emotional bonds and mutual respect. These are things you cannot purchase with money – regardless of how wealthy you are.

So, have you used your money to attract someone? The sad news is that the person doesn’t really love you. They love what you have and what you can give them. They may stop ‘loving’ you when you stop funding them or when your money runs out.

Are you with someone because of their money? That’s really unfortunate. They are most probably using you. They could dump you when they’ve had enough of you or when they identify their next target.

I urge you to look for someone who loves you for who you are, warts and all. That’s what genuine love is all about. Money can’t buy genuine love.

Money Secrets: Work Hard In Silence, Let Your Success Do The Talking

This is one of the most amazing money secrets I’ve learned. It encourages you to work hard quietly. Remember we said that the wealthy is quiet, rich is loud, and poor is flashy?

You don’t have to preempt people on the projects, tenders, or investments you’re working on. Just work diligently without broadcasting to friends, relatives, colleagues, etc.

When you finally succeed, people will clearly see your capabilities and achievements.

You don’t have to seek validation through words. Your success will speak on your behalf.

Conclusion

There you have it. Those are some of the money secrets I wanted to share with you. I hope they’ll be of use to you.

Which money secret have you loved the most? Kindly share your thoughts in the comments section below. Cheers!

Also read:11 Money Mistakes We Make In Our Lives; Make Wise Financial Decisions From Today Onward.