Saturday, March 25, 2023

23% of Workers Are Making This Big Financial Mistake - The Motley Fool

Are you making it, too?

Key points

  • It's essential to set aside money on a regular basis to cover a host of essential bills.
  • Medical issues could arise when you least expect them, and it's important to be prepared.
  • FSAs and HSAs are both good ways to set aside money for extra medical expenses with a tax advantage.

There are certain expenses we all know to set money aside for. If you own a home, paying your mortgage every month is required. And you'll also need to make sure there's room in your budget for expenses like food, car payments, and utility bills.

But there's one important expense many people inevitably forget to save for: healthcare. And doing so could have seriously negative consequences.

Are you setting money aside for medical costs?

Even if you're a relatively healthy person, you never know when you might get injured or fall ill, leaving you with hundreds or thousands of dollars in medical bills to grapple with. That's why it's so important to have money accessible for healthcare expenses. Yet in a recent Transamerica survey, only 77% of respondents said they have money available for medical costs, which means 23% of workers are leaving themselves extremely vulnerable.

How to save for healthcare costs

When it comes to socking money away for healthcare spending, you have options. One is to simply pad your savings account, which is never a bad thing. But doing so won't give you any sort of tax break. And if you'd like to snag a tax break in the course of...

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