Secure The Bag: 6 Smart Ways To Elevate Your Finances Now! - Page 2

1. Max Out Your Retirement and HSA Contributions

One of the most effective ways to secure your financial future is by maximizing contributions to your retirement and Health Savings Accounts (HSA). In 2024, the IRS allows individuals to contribute up to $22,500 to their 401(k) or similar employer-sponsored retirement plans. If you have an Individual Retirement Account (IRA), you can contribute up to $7,000, with an additional $1,000 catch-up contribution if you’re over 50. If you haven’t yet opened an IRA, a Roth IRA could be a smart option. According to Forbes, Roth IRAs are funded with after-tax dollars, and withdrawals made after the age of 59½ are tax-free, making them an attractive long-term investment choice.

For those eligible, contributing to a Health Savings Account (HSA) is another powerful way to save for the future. You can contribute up to $3,850 for individual coverage or $7,750 for family coverage in 2024. HSAs offer triple tax advantages, as noted by HSA Central. Contributions are tax-deductible, reducing your taxable income for the year. Interest earned in an HSA grows tax-deferred, and as long as the funds are used for eligible medical expenses, withdrawals are completely tax-free. This makes HSAs a unique and powerful tool for both healthcare savings and long-term wealth building. So, be sure to take full advantage of these accounts before the year ends.