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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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Why Even Finance Experts Overspend During the Holidays

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Even though I work in wealth management and coach personal finance, I still overspend sometimes. It happens. 

But why is it so easy to spend too much, even when we know better?

The U.S. saw a 4.8% increase in holiday retail spending in 2024, totaling around $1.1 trillion. Online sales jumped by 7.1%. 

These numbers show just how much people are spending—sometimes more than they should—especially during the holiday season.

The Psychological Trap

When we buy something, our brain gets a reward. That quick feeling of pleasure is from dopamine. It feels good at the moment, but later we often regret it. 

Our brains are wired to chase these quick rewards, so we spend without thinking about the consequences.

 Easy Access  Makes It Worse

In the past, it was harder to buy things. You had to get up, find your card, and enter the details. That little bit of effort often made you pause before buying. 

But now, things are easier. All my payment info is saved. On Amazon, I don’t even need to enter my card details. They’re already there. I just click, and it’s done. No need to leave the couch.

The Danger of Convenience

The easier it is to spend, the more we spend. Technology makes it so simple. We click and buy without thinking.

Tips to Stop Overspending

Here are a few things you can do to stop yourself from overspending:

  • Don’t Save Your Card Information
     Don’t store your card details on apps or websites. Make it harder to buy things.

  • Use Virtual Credit Cards
     Some banks offer virtual cards for one-time purchases. This can help you limit your spending.

  • Limit Your Cards
     Carry just one card. Choose the one with the lowest balance. This will help you spend more carefully.

  • Set Spending Limits
     Set a daily or weekly limit for spending. Track your purchases. It helps you stay on track.

  • Unsubscribe from Emails
     If you get too many promotional emails, unsubscribe. It’s one less temptation.

  • Be Mindful
     Before buying, ask yourself: “Do I really need this?” It’s a simple question, but it works.

Overspending isn’t just about willpower. It’s about how easy it is to spend and how our brains are wired to seek rewards. 

By making small changes, you can stop overspending and take control of your finances. Even I have to remind myself of that sometimes.




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