The rich have a different focus. They are not worried about saving for retirement, they are worried about passing their wealth to heirs without paying too much in taxes. Taxes are their biggest enemy. And they have figured out how to avoid them. For the rest of us, we don’t have millions to protect. But there is a powerful tool we can use to save on taxes. It’s called a Health Savings Account (HSA). Here’s how it works. True Story I recently went to the eye doctor. Here is 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 are 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 would need $54.93 before taxes. To pay $375 for the frames, you would need $528.17 before taxes. ...
You are cruising down the highway of life, wind in your hair, radio blasting, when suddenly, you hit a roadblock called "financial reality." So, you are a young professional with your first adult job, but your financial knowledge is pretty basic. Your bank account is close to empty. Sound familiar? Thought so. But don’t worry. It's fixable. Here’s how. Take control of your money and budget like a pro. Let’s break down the basics of creating and sticking to a budget. It doesn’t have to be boring. Think of it as your financial blueprint. It’s the roadmap to goals like buying a home, traveling, or just sleeping well at night knowing all your bills are paid. Start by tracking your expenses. You need to know where your money is going each month. Grab a piece of paper and list everything: rent, phone, gas, groceries, dining out, Netflix, everything. Don’t forget small stuff like that daily latte or online shopping. Next, review your income. Add up your paychecks and any other s...