SMARTDOLLARS DIGEST

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.  ...

Life throws unexpected expenses your way, and you are 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 will 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 yo...

Here’s a quick, no-fuss money tip: You know those stray coins you find everywhere? The ones you toss in a drawer and forget about? Those little guys can actually add up if you start collecting them. Step 1: Grab a Jar Any container works. Coffee tin, old mason jar, even that weird vase you’ve never used. Just pick a spot. Step 2: Toss in Your Spare Change Every time you find loose change, drop it in. It’s an easy way to build a savings habit without even trying. Step 3: Watch It Grow Before you know it, your jar will be full. Those stray coins will start looking like real money. Why It Works: Small Steps, Big Rewards: Don’t underestimate spare change. Little things add up. Builds Confidence: It’s an easy win to kickstart your savings journey. Surprising Payoff: When you finally cash in, you’ll be amazed at how much you’ve saved. That’s it. Grab a jar, start collecting, and watch your savings grow.