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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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How To Not Get TKO’ed by Life's Financial Curveballs

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Life throws unexpected expenses your way, and you’re left fighting for your life. But it doesn’t have to be this way.

Emergency funds may not be the most exciting topic, but having one is like having a backup plan when life throws a curveball.

What’s an Emergency Fund? 

An emergency fund is simply cash set aside for the unexpected—like car repairs or an unplanned vet visit.

You might think, "I’ve got credit cards for that!" But relying on plastic can lead to debt fast. Having cash means you don’t need to rack up high interest rates or worry about maxing out your cards.

How Much Should You Save? 

Experts recommend saving three to six months of living expenses. Sounds like a lot, right? Start small. Put aside a little each month, and before you know it, you'll have a financial cushion.

If you don't have anything left at the end of the month, take a look at your spending. A couple of lattes or takeout meals could be money you could be saving.

I challenge you to start your emergency fund with just $25 a week in a high-yield savings account. It's a small step, but it adds up.

How to Get Started? 

Treat your emergency fund like a priority. Set aside money every payday. If you get extra cash, like a tax refund or bonus, put part of it into your fund.

Pro Tip: Use apps like Mint or YNAB to track your spending. Set up automatic transfers to make saving easy.

Extra Tips:

  • Cut Unnecessary Expenses: Review your subscriptions and cancel the ones you don’t use.
  • Budget: A budget is your financial map. Without it, you’re just wandering around.

Why It Matters Having an emergency fund is a financial safety net. It reduces stress when unexpected expenses pop up and helps you stay prepared.

Start building your emergency fund today. The next time life surprises you, you’ll be ready.



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