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HSA: How to Beat Taxes Like the Rich

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The rich have a different focus. They're not worried about saving for retirement—they’re worried about passing their wealth to heirs without paying too much in taxes.  Taxes are their biggest enemy. And they've figured out how to avoid them. For the rest of us, we don’t have millions to protect. But there’s a powerful tool we can use to save on taxes. It’s called the Health Savings Account (HSA).  Here’s how it works. True Story  I recently went to the eye doctor. Here’s what I spent: Extra test: $39 Ray-Ban frames: $375 Total cost: $414 that I paid with my HSA card. Because the money in my HSA is pre-tax, I didn’t need to earn as much to cover the cost. Pre-Tax vs. Post-Tax Spending Let’s say you're in a 24% federal tax bracket, and you also pay 5% state tax. Your total tax rate would be 29%. Without an HSA (Post-Tax): To pay $39 for the eye test, you’d need $54.93 before taxes.  To pay $375 for the frames, you’d need $528.17 before taxes.  For the total ...
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Improve Your Finances in Just 5 Minutes

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Managing your finances doesn’t have to take hours. Here’s a five-minute plan to get started:

Step 1: Check Your Spending (2 minutes)

Take a quick look at where your money is disappearing each month. If you’re paying for subscriptions you never use, cancel them. Shop around for better deals on your bills. 

That extra cash can be used for stuff you actually care about.

Step 2: Create a Mini-Budget (1 minute)

Grab a pen and jot down your must-pay expenses—rent, utilities, groceries. Subtract that from your income. Now you’ve got yourself a mini-budget. Knowing where your money goes makes it easier to stop it from running away.

Step 3: Automate Your Savings (1 minute)

Set your bank to automatically move a small amount of cash into savings every paycheck. You won’t even miss it, but you’ll be glad it’s there when you need it.

Step 4: Check Your Credit Score (1 minute)

Your credit score is like a report card for your finances. Take a minute to check it out for free (try Credit Karma). If there are mistakes, get them fixed. A good score can help you get better deals on things like cars or apartments.

Step 5: Start Learning About Investing (5 minutes)

No need to panic—we’re keeping this simple. Spend a couple of minutes exploring easy ways to grow your money. Retirement accounts, index funds—just start learning about them. It’s a small step toward building a secure financial future.

And that’s it! In just five minutes, you’ve given your finances a quick but effective tune-up. By tracking your spending, creating a mini-budget, automating your savings, checking your credit, and starting to learn about investing, you’re setting yourself up for success.

Keep it up, and watch your money grow—slowly but surely.


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