Skip to main content

HSA: How to Beat Taxes Like the Rich

By
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 ...
2 comments

America’s Money Crisis: The Numbers Don’t Lie

By

If you had a $1,000 emergency today, could you cover it? For nearly half of Americans, the answer is no.

Last night, I woke up in the middle of the night. To help me fall back asleep, I started scrolling through LinkedIn.

One post stopped me dead cold: 

62% of households live paycheck to paycheck. 76% don’t have enough to cover a month of expenses. 45% couldn’t handle a $1,000 emergency. The average household owes $23,000 in non-mortgage debt. 30% spend too much on housing.

These aren’t numbers—they’re people. People who are stressed, struggling, and stuck in a cycle that feels impossible to break.

So I asked myself: Why is this happening? And what can we do about it?

Why This Is Happening

  1. Costs Are Rising Faster Than Wages: Prices for essentials like housing, food, and gas keep going up, but paychecks aren’t keeping pace.
  2. Debt Is Taking Over: Student loans, credit cards, and car payments are piling up. High interest rates make it even harder to pay off.
  3. Housing Is Too Expensive: For many, rent or mortgages take up more than 30% of their income. That leaves little for anything else.
  4. No Savings for Emergencies: Without a financial safety net, one unexpected bill can derail everything.
  5. We’re Not Taught About Money: Most people don’t learn about budgeting, saving, or investing in school. That makes it hard to make smart financial decisions.

What You Can Do

  1. Cut Housing Costs: If you’re spending too much on rent or a mortgage, look for ways to downsize. Moving might not be fun, but it could free up money for other needs.
  2. Tackle Your Debt: Start with the debt that has the highest interest rate. Even small extra payments can make a big difference over time (more debt strategy HERE).
  3. Build an Emergency Fund: Save whatever you can, even if it’s just $10 a week. It adds up faster than you think.
  4. Learn the Basics of Money: Use free tools like YouTube, podcasts, or budgeting apps to get a handle on your finances and learn financial literacy.
  5. Push for Change: Support policies that help raise wages, lower housing costs, and make debt repayment easier.

It’s Not Hopeless

This might feel overwhelming, but small changes can lead to big things. Cut back where you can, save what you can, and educate yourself about your options.

Tell me, what step will you take today to create a more secure financial future for yourself? Share it in the comments or with someone you trust.




Labels:

Comments

  1. AnonymousDecember 17, 2024 at 9:02 AM

    Instead of renting my own 1 bedroom apartment, I choose to live with roommates to save on housing costs.

    ReplyDelete
    Replies
    1. G LaBrancheDecember 17, 2024 at 5:17 PM

      That's a great way to go about it! Keep saving and keep building :)

      Delete

Post a Comment

Popular posts from this blog

Social Security's Dirty Secret: Why You Need a Backup Plan

By
Relying on Social Security for retirement is like trusting that friend who always says they’ll help you move—and then flakes out at the last minute. You think they’ve got your back, but instead, you’re left carrying a couch down a flight of stairs by yourself. That’s what relying on Social Security might feel like. The hard truth is social Security won’t cover your retirement. The system is stretched thin, and those checks might barely cover your Netflix, let alone your dream retirement. Social Security Running Dry Let’s face it: Social Security is on shaky ground. Fewer workers are paying in, and more people are collecting benefits. The government predicts that by 2034, the trust fund could be tapped out, and that means benefits could drop by 20-25%. That’s less than $1,500 a month. Can you really rely on that to retire comfortably? Building Multiple Income Streams Think of retirement like a garden. You wouldn’t rely on just one hose to water it, right? You’d use sprinklers, ra...
2 comments
Read more

Own It: Your Guide to Financially Prepare for Homeownership

By
You want to own a home, but are you ready for the real deal? Buying a home isn’t like picking out a couch – it’s a huge commitment that requires a solid game plan. Without one, you could be left scrambling to figure out where you went wrong, like assembling IKEA furniture without the instructions. Step 1: Save for Your Down Payment You’re going to need a down payment. The trick is figuring out how much you can save each month and sticking to it. Setting up automatic transfers makes it easier to stay on track, and a high-interest savings account will help you grow that money faster. Think about what you can cut back on to save more – maybe it’s eating in more instead of grabbing lunch out, or skipping the daily coffee run. Every dollar counts toward your future home. Step 2: Get Your Finances in Order Before you even start looking at houses, get your finances straight. Make a budget to see where your money’s going. Check your credit score – it directly impacts the mortgage options you c...
6 comments
Read more