How your money can grow, part 2

Today’s column continues our series of up-to-date tips and reports which will help a family prepare a reasonable, affordable financial plan with a goal of achieving financial freedom.

In the previous column, we discussed why savings is a first step of good money management and why it’s important to make decisions that help your savings grow.

Regardless of your income level, you need to use financial planning principles to “grow “your money, to build wealth. Through the financial education programs offered at no cost by Neighborhood Home Solutions (NHS), you can gain mastery of these principles. A homeownership counselor at NHS will work with you to provide guidance and support in putting these principles into action based upon your individual circumstances and goals.

Financial planning and building assets are not just for those with higher incomes; a study by the Center for Impact Research found that individuals with lower incomes realized the importance of saving. Most of the respondents indicated that having money in the bank made them feel more secure, knowing they could use their own money when they needed it, especially for emergencies or unexpected expenses. As well, saving money in a savings account for long-term goals placed high on the list for reasons for saving.

According to the study, both those currently saving money in a savings account as well as those who aspire to save but are not currently saving in an account have similar goals, including a goal of homeownership.

One individual cited in the study stated that “I just learned about home ownership. It’s the key to building wealth.” The topic of homeownership was of considerable interest to respondents. The majority said that buying a home was an important reason why they were saving or a reason they would save.

For some people, homeownership may not seem possible. Financial planning is still important for your future and your children’s future.

Although there is no magic formula for how you can go from worrying about living paycheck to paycheck to building savings and then “growing” your money, there are solutions. Through the years, many people have come through the doors of Neighborhood Home Solutions (NHS). People who participated in the NHS programs gained the knowledge of how to take control of their finances. Many became first-time homebuyers. They built strong financial futures for themselves and their families.

Register for the NHS Financial Fitness Classes (online at www.nhsfl.org, stop by the office at 1600 Dr. Martin Luther King Jr. S. S., St. Petersburg, or call us at 727-821-6897) and learn how to save and invest your money so that it grows.

NHS is a 501 (c) (3) HUD approved nonprofit housing counseling organization. Services are provided free of charge. Partners include the U. S. Department of Housing and Urban Development (HUD), HomeFree USA, Florida Hardest-Hit Fund, Pinellas County Community Development, and the City of St. Petersburg. Sources for this article include Bankrate.com and Center for Impact Research.