Building Good Money Habits

Building good money habits begins with the desire to live a life of financial freedom. It means keeping life simple, and also that individuals must learn to own their money rather than allow their money to own them. It’s really a simple concept, except so many find it difficult to get started. The hard part is knowing where to start, how to create good money habits, and how to find a plan that works. Once this happens, it’s easy for everyone to make the changes they need to secure their financial future. It all starts with money knowledge.

Short-Term Saving Money Habits

Short-term saving money habits are the easiest to come up. What is a short-term savings goal? It’s anything an individual is saving money for that will come to pass in the near future. For example, it’s not retirement when an individual is only twenty-five. However, saving a down payment for a home is often considered a short-term money goal, as are saving for a vacation and for a down payment on a new car.

Many individuals feel they can put money into a savings account and call it a day, but it’s far easier when someone chooses a short-term savings account that makes the deposited money make money. Certificates of deposit (CDs), for example, are a great short-term savings account for those who want to stash their savings for something specific and watch it make money. A regular savings account works, a money market savings account works, and CDs always work for short-term goals. For example, a family who wants to save for a down payment on a house can open a CD and put their current savings in it for a year so it can grow while they continue to save money by opening additional short-term CDs every month with the rest of their savings.

Continue reading to learn about safety net money habits to practice.