Money Habits
Streaming services, that app you signed up for once, the gym you keep meaning to visit.
These small recurring charges pile up, especially the ones you forgot about.
Answer: Subscriptions
Most people have more than they think. Pull up your statement once in a while and cancel what you haven't touched in months. It's the easiest money you'll ever save!
Your savings earn a little, then those earnings start earning too, and the whole thing snowballs the longer you leave it alone.
Name the engine behind it.
Answer: Compound interest
This is the closest thing to free money there is. The earlier you start, the more time it has to snowball.
You have to carry a balance on your credit card to build good credit.
MONEY — true!
Paying your statement in full every month builds credit just as well, and it saves you the interest. Carrying a balance only costs you money.
You buy something on the spot, and by the time it arrives the excitement is already gone.
This habit is the cure for that.
Answer: Sleep on it (the 24-hour rule)
Most impulse buys lose their pull overnight. If you still want it tomorrow, fine. More often you forget it existed, and the money stays put.
You put in money you've already paid taxes on, and from then on it grows and comes out in retirement completely tax-free.
Name this account anyone with a paycheck can open on their own.
Answer: Roth IRA
Every dollar it earns over the decades is yours to keep, with no tax on the way out.
Open one outside of work and let compounding run for years. This is how ordinary salaries turn into real retirement money!
Checking your own credit score lowers it.
MYTH - false!
Checking your own score is a soft pull and never affects it! Only a lender pulling your report for a new loan or card counts against you.
This type of account contains three to six months of expenses, strictly set aside for the car repair or medical bill you never saw coming.
Answer: Emergency Fund
This is what keeps a surprise bill from turning into credit card debt.
Three months is a solid start, and six is comfortable!
It's the retirement savings account offered right here through H+H, where money comes out of your paycheck before you ever see it and grows for later.
Answer: The 457(b)
A high-yield savings account can pay many times more than a regular big-bank account on the same money.
MONEY — true!
A high-yield savings account can pay many times more than a regular big-bank account on the same money.
A common rule of thumb says to set aside about this much of every paycheck for savings and investing before you spend the rest.
Answer: 20% (a fifth of your pay)
Twenty percent is a strong habit if you can swing it. Aim for it over time, and start smaller if that's where you are right now. Every bit you automate is one less decision later.
You need a big chunk of money saved up before it's worth starting to invest.
MYTH - false!
Most retirement accounts let you start with small automatic contributions. Starting early beats starting big, because your money has more time to grow.
You get a raise, but somehow you're saving no more than before, because your spending quietly grew to match.
This sneaky pattern has a name.
Answer: Lifestyle creep
It's why a bigger paycheck doesn't always feel like more money. Send part of every raise straight to savings before you get used to spending it.
Closing an old credit card you never use can actually hurt your score.
MONEY — true!
Closing it drops your total available credit and can shorten your credit history, and both can nudge your score down. Keeping it open and using it lightly is often the smarter move.