Abstract: A magnetic holding device having an elongated body which extends between a tip and a locking head. A saddle is connected to the elongated body. Said saddle having a magnet connected thereto. In operation the elongated body is wrapped around the body of a hand tool and the tip is passed through an opening in the locking head. The elongated body is passed through the locking head until the magnetic holding device is tightened over the hand tool. Once in place the magnetic holding device holds the hand tool in a convenient place near where the hand tool is being used by connecting the magnet to any metal object. In this way the magnetic holding device provides the advantage of reducing the potential for lost or misplaced hand tools by allowing for easy organization and placement of hand tools during use.