Financial Health Tips

"My CPA told me: You don't have to spend your HSA — just let it grow." Last week, I reviewed a client's tax return. They contributed $8,300 to their HSA... and panicked thinking they had to spend it all. They'd been saving receipts all year, planning a December shopping spree for eligible expenses. I stopped them cold: "That's FSA thinking. Your HSA never expires." That money? Still sitting there, tax-free, compounding. Completely untaxed growth — potentially for decades. Their face when they realized their HSA could become a stealth retirement account was priceless. The HSA is the ONLY triple-tax-free account in existence: - Tax-deductible going in (immediate savings) - Grows tax-free (no capital gains taxes ever) - Withdraw tax-free for qualified medical expenses — even decades later And if you don't use it for medical expenses? At age 65, it works like a traditional IRA — withdraw for anything, just pay income tax (no penalties). Here's how to actually win with an HSA: - Max out the contribution every year ($8,300 family limit for 2024, rising to $8,550 in 2025) - Do NOT spend it. Pay medical costs out-of-pocket if you can  - Invest the HSA balance — don't leave it in cash earning nothing - Keep every medical receipt digitally. You can reimburse yourself years later, tax-free - Treat your HSA as part of your retirement portfolio — not a short-term medical fund Remember: The average couple needs $315,000 for healthcare in retirement. Your future self will thank you for this tax-free medical nest egg. If your CPA hasn't explained this strategy to you, you're leaving one of the most powerful tax advantages on the table.

There's $200+ billion in medical debt in the U.S. Here's how you can use your medical expenses to build wealth: What is an HSA? It's a tax-advantaged account where you use the funds for qualified medical expenses. But the reason why we love it? It is the only investment vehicle with a triple tax benefit. Which looks like this: 1) Contributions are tax-deductible (Like a Traditional IRA) 2) Funds grow tax deferred (Like any IRA) 3) Funds distribute tax-free (Like a Roth IRA) for medical expenses But of course, it's not flawless: 1) Must have a high-deductible health insurance plan. 2) Low contribution limit (Including employer match) [2024] - $4,150 for individuals - $8,300 for families 3) Taxed and hit with a 20% penalty if not used for medical purposes Is it locked forever? If funds are not used for medical purposes but taken out at 65, they're taxed but not penalized. So if you boil it down, it becomes like a Traditional IRA down the line. Interesting fact about the HSA: There is no time limit on when funds must be utilized for expenses. For example, you could: - Incur a medical expense - Not distribute the funds immediately - Wait 10 more years and make a distribution - Still use that expense to make it tax free Why is this important? You can keep your funds inside and have it continue growing. That way you don't disrupt compounding interest and take the funds out tax free backed by all the medical receipts you collected. It's a strategic way to grow and distribute tax-free income. This means you should keep receipts on file over time. And these can only be expenses made after the HSA was opened. So be sure to keep the receipt on file for its use in the future. You'll want to make the most of those bills! So, who is it right for? For whoever needs a high-deductible health insurance plan, which is typically suitable for: - Young adults - Those seeking to lower monthly premiums - Healthy individuals (who don't see doctors often) The health plan should align with you first.

Question: “Sir, thanks for your note on how to become financially independent in America. I want to ask you Sir, is opening a credit card bad as many in our village community have suggested?” https://lnkd.in/e-MteCNW My Response: Having a credit card is NOT bad. What is bad is the illusion that a loan (yes, a credit from a credit card) is not a responsibility. So, instead of focusing on the credit card, focus on what the money you are getting via credit would be used for. In America, credit is part of the system, and you must NOT be fearful of running a life built on credit. But remember: after running, you count the miles, they say. If they give you a loan, that money must be repaid. That it came as a plastic card does not mean it is not US dollars! Let me share an experience which could help you. Many years ago when I made it into America, I sought insights on how to quickly get into the American financial system, understanding that there was no village to relocate to, if one cannot pay the bills (in Nigeria, if you become homeless in the city, you can move to your village!). I went to the foreign students office; they referred me to a woman, Maureen, in the account services. Maureen gave me a small book on building credits, and told me three things: -You must build credit in America. -To do that, since you just arrived from Nigeria, call your bank or a credit card company, and ask for a prepaid credit card. -Where possible, buy everything with that card, and at the end of the month, pay things off. Do not carry a balance! I did not have enough but I did send Chase $200, and they sent me a prepaid credit card. I did as she instructed; I picked an extra student job in the farm (Instrumentation Engineer, managing sensors and electronics in the university farm which covered hectares of land. Was an IT guy in a bank in Lagos). Within 3 months, Chase returned the deposit, and increased the card to $500. Then $1000, $5000, $20000, etc. Over the years, I have had a near-perfect credit score: hovering around 820-845 out of possible 850. And that has saved me tons of money because every bank considers me a low-risk borrower. With a good credit, where others are charged 21%, you can get the same credit at 6%. Finally, those telling you NOT to touch credit cards are not helping you because you must build credit if you want to unlock possibilities in America. What you should not touch is spending money with a plastic on an illusion that it is not USD.

Financial Awareness Isn’t Just About Watching Your Bank Balance… It’s like thinking a single dollar tells the whole story of your wealth. Sure, every dollar matters, but there’s much more to your financial well-being. Here’s what really weaves together solid financial planning: ☑️ Clear goals and objectives. ☑️ A realistic budgeting process. ☑️ Investments that match your risk tolerance. ☑️ Strategies for reducing taxes. ☑️ Insurance to protect your assets. ☑️ Regular financial check-ups. ☑️ Adaptable plans that evolve with your life changes. ☑️ Consistent monitoring and rebalancing of your investments. ☑️ Plans for estate management and inheritance. ☑️ Transparent communication about your financial status. ☑️ Simplified financial language that you can understand. Remember, it’s not just about gathering financial tools and resources; it’s about integrating them effectively to create a financial strategy that is understandable and actionable, rather than one that is as overwhelming and complicated as a maze. P.S. Have a question about simplifying your financial plan? Drop it in the comments. #FinancialAwarenessDay

34-year-old millionaire explains: 13 habits keeping you poor Ever checked your bank account and thought, “Where did all my money go?” I’ve been there. Five years ago, I wanted it all - travel, investments, a better life - but didn’t know how to make it happen. Now, my investments earn almost as much as my business. I changed things by breaking the habits that were quietly draining my money. So I'd like to share 13 habits that might be holding you back - and how to fix them. 1. Living without a budget If you don’t track your money, it disappears. Use the 50/30/20 rule - 50% for needs, 30% for wants, 20% for savings. Trust me, seeing where your money actually goes is eye-opening. 2. Relying on one income stream Relying on one paycheck is risky. What if it’s gone? Start diversifying with a side hustle, freelancing, or passive income. I have 19 (!) income streams, and it’s a huge relief. 3. Falling for lifestyle inflation Got a raise and started spending more? That’s lifestyle inflation. Instead, invest the extra money and keep your expenses in check. Enjoy life, but stay smart. 4. Avoiding investing You don’t need a lot to start investing. Even $10 a week can grow over time. Start small and stay consistent. 5. Keeping bad debt High-interest credit cards and payday loans can trap you in debt. Pay them off first and avoid borrowing for things you don’t really need. 6. Ignoring financial education We spend years learning algebra, but no one teaches us money management. Read books, watch videos, follow experts. The more you know, the better decisions you’ll make. 7. Neglecting an emergency fund Life happens - unexpected costs like job loss or car repairs. Save 3-6 months of expenses in an easy-to-access account as a safety net. 8. FOMO spending Seeing someone buy a luxury car on social media and feeling like you need one too? Social media fuels FOMO, but don’t fall for it. Stick to your financial goals, not trends. 9.  Overlooking small leaks Those daily $5 coffees? They add up. Small, unnoticed expenses can drain your bank account faster than you think. Track and cut unnecessary costs. 10. Not setting financial goals Without a goal, it’s hard to get anywhere. Whether it’s buying a house or retiring early, set clear goals and track your progress. 11. Delaying retirement savings Waiting to save for retirement is a big mistake. The sooner you start, the more your money can grow - even small amounts make a big difference. 12. Not automating finances Set it and forget it! Automating savings and investments ensures you stay consistent - no excuses, no forgetting, just progress. 13. Avoiding professional advice A financial advisor can help you make better choices with your money, taxes, and investments. It’s worth it. Breaking these habits won’t make you a millionaire overnight - but it will set you on the right path. Which of these habits do you need to break first? #MoneyTips

Setting up your books wrong destroys businesses faster than any market crash. I’ve seen these mistakes so often - founders mixing personal and business accounts, messy charts of accounts, and pure chaos in their statements. Most businesses fail because they ignore their foundation. Not anymore. Here's the breakdown 👇 First, let's talk about what makes a solid foundation in 2025: - Automated transaction management - Clean separation of business and personal finances - Strategic software selection - Clear understanding of cash vs accrual implications Let's fix that! Here's my proven 10-step system: 1️⃣ BUSINESS SETUP Personal card for business expenses? BIG mistake. Not only will the government hate it... Your bookkeeper will too! (Plus you're risking that corporate veil protection) Creating a dedicated bank account for your business is a no-minder and will save you so many headaches. 2️⃣ GET YOUR SOFTWARE RIGHT Excel is great (trust me, I'm obsessed) BUT Your core accounting needs real software QuickBooks Online is the cheapest and most popular tool before you need an ERP 3️⃣ CASH VS ACCRUAL Quick example: Sell an iPhone for $1,000, deliver in 30 days Cash basis? Record now Accrual? that's deferred revenue 4️⃣ DESIGN YOUR CHART OF ACCOUNTS Think of this as your financial filing system. Strike the balance between: - Too detailed = overwhelming - Too broad = uninformative 5️⃣ IMPORT TRANSACTIONS Automation is your friend here. Direct bank feeds save hours of manual entry. Sort by description for bulk categorization. Set rules for recurring transactions. 6️⃣ CLASSIFY TRANSACTIONS Every transaction needs a home. Include: - Category - Vendor/customer - Department - Supporting documents Remember: Garbage in = Garbage out 7️⃣ PERFORM BANK RECONCILIATIONS Match every transaction to your statements. Investigate every discrepancy, no matter how small. 8️⃣ ADJUSTMENTS Key adjustments to consider: - Prepaid expenses spreading - Accrued expense recognition - Depreciation calculations - Revenue recognition - Inventory adjustments Remember the BASE formula: Beginning + Additions - Subtractions = Ending 9️⃣ FINANCIAL STATEMENTS This is where your hard work pays off. Review for: - Unusual fluctuations - Missing expenses - Revenue recognition timing - Margin changes - Budget variances Your statements should tell a story about your business. 🔟 MAKE DECISIONS Great bookkeeping is about insights. Use your clean books to: - Forecast cash flow - Plan hiring - Time major purchases - Identify cost savings - Drive growth strategies === The future of bookkeeping combines these foundations with modern tech. But remember - automation and AI are only as good as the foundation they're built on. Which tools are you using to modernize these processes? Share your stack 👇

Stop trying to make a radical change. Instead, focus on small, consistent financial habits. Sound easy, right? Wrong. Most high-earners overlook the power of simple habits. Why? ↳ You underestimate how much you lose to taxes and unplanned spending. ↳ You’re investing but not sure if it’s actually moving you closer to freedom. ↳ You expect big moves to fix everything, ignoring small, proven steps. That makes you think you need a drastic shift... But that’s not sustainable. Here’s how to build wealth with small, strategic habits: 1. Start with what matters most. ↳ Set clear financial goals that fit your lifestyle. ↳ Focus on reducing taxes, growing investments, and protecting assets. 2. Create a simple, repeatable plan. ↳ Automate savings, tax strategies, and investment reviews. ↳ Align your financial system with your career demands. 3. Track what matters. ↳ Measure progress with net worth, investment returns, and tax savings. ↳ Adjust regularly to keep moving forward. 4. Build gradually, not all at once. ↳ Improve one financial habit at a time, then layer on more. ↳ Don’t chase trends. Stick to what works for you. 5. Stay consistent. ↳ Wealth isn’t built overnight. It’s built daily. ↳ Small, strategic habits make financial freedom inevitable. Once you commit to consistent financial habits, you become ↳ More strategic with your wealth ↳ More in control of your future ↳ More financially independent Because building wealth isn’t about doing more. It’s about doing better. ♻️ Found this helpful? Repost to help others! Follow Anthony Williams, CFP® for more. 

Your financial health isn’t just about high returns. After 25 years guiding entrepreneurs, I've noticed a common issue: Narrow focus on immediate gains. My 5 step plan to reshape your future 1. Comprehensive Financial Review:        → Assess your financial landscape, not just real estate.    → Identify strengths and weaknesses.    2. Tax Efficiency:        → Are you maximizing your deductions?    → Develop a plan to reduce taxable income.    3. Income Diversification:        → Consider additional income streams.    → Strengthen your financial foundation. 4. Risk Management:        → Evaluate risks in your portfolio.    → Implement strategies to mitigate them. 5. Long-Term Planning:        → Think beyond the next deal.    → Create a roadmap for sustained growth.    Your financial future deserves more than a one-size-fits-all approach. DM  "Blueprint" to build a comprehensive financial strategy today.

I love January for a weird reason: I can finally dive into my full-year financial summaries from the previous year and set my 2025 goals. I make a date out of it, analyzing my spending and saving habits and projecting future contributions to my 401(k) and Roth IRA. My “New Year Financial Dates” have changed significantly since I started doing them (almost six years ago today, when I joined Bankrate :) ). Earlier in my career, my goal was liquidity (adding cash to my emergency fund that I could access at any time). But my rainy day fund is now more established, so lately, I'm more focused on scaling up my retirement contributions. Here are some key lessons I’ve learned over the years: 1. 50/30/20 rule: Calculate how close you are to this budget rule, but remember, it’s just a guideline. These budgeting guardrails might not be so realistic anymore, in an economy dogged by barriers like student loan debt or high housing costs. Case in point: 50% of the 42.5 million renter households in the United States spent more than 30% of their income on housing costs in 2023. 2. Building your emergency fund: Financial experts typically advise Americans to keep six to nine months' worth of their monthly expenses in a savings account, but many of us are probably spending money on things that we wouldn't be paying for if we were unemployed. Our “emergency number” is also fluid, changing every year along with our expenses. That’s why I like to revisit what I call my "survival" number. Track your monthly expenses and figure out what you'd cut if your financial situation changed suddenly. 3. Small savings goals: If you don’t yet have your "survival" number in your savings, don’t worry: Set small, achievable goals. Savings add up, especially when paired with a high-yield savings account (which are currently offering 4% or more annually). 4. Debt management: Know what’s good versus bad debt. Never go bigger on your student loan repayments if it means sacrificing saving for retirement or emergencies. But credit card debt is something you want to chip away at immediately, possibly by utilizing a balance-transfer card. 5. For more advanced budgeters: If you feel comfortable with your savings and instead want to prioritize scaling up your retirement contributions, play around with how much your monthly income would change if you increased your contributions by just 1-2%. Thanks to the tax savings, you might actually notice it less than you think. Bottom line: Set small goals, give yourself grace and remember that consistently paying yourself first will pay off. Let me know your financial goals this year!