When I’m 64: Part 1 of 3

August 12, 2011

When I was 12 years old, a girl I knew told me that she had been saving a dollar a day since the day she was born.  I did the math and I figured out that by her 12th birthday, she would have saved approximately $4,000.  I thought that was a fantastic idea, and decided I was going to try it.  A dollar a day?  I can handle that!

Well, I saved a dollar a day for three days.  I didn’t have the follow-through to continue with it, and leading into my college years, when I made some terrible financial decisions, my savings went into negative numbers because of various debts and loans.  Since I began living on my own, eleven years ago, I have enjoyed a lifestyle I couldn’t/can’t necessarily afford, and while I’m making better decisions now and paying all of my bills without added interest tacked on, I have very little in the way of savings, which brings me to my current situation.

A month or so ago, my younger brother, who for all intents and purposes is my older brother in many ways, told me he was giving my phone number to his financial advisor (hint, hint, get your act together).  I was open to the idea of working with this guy, and have now met with him on two occasions about my future.  Eek.

**Quick sidebar – My little brother, who graduated from college with a degree in kinesiology and now is the co-owner of a successful personal training gym could probably retire when he’s forty at this point. Geez, I’m a slowpoke…

Anyway, when I was in internship, I was encouraged by my director to START SAVING NOW.  That was five years ago, and I haven’t saved a dime, at least not really.  The thing is, when you work for a company, you sometimes get sweet benefits like: retirement plans, life insurance, health insurance, vacation and sick time, maternity leave, etc.  When you are self-employed, you don’t get squat.  No one is there to set up pretty little 403b or 401k accounts for you, and no one is helping you to save any money, except for you.  So what happens if you’re self-employed forever, because you can’t fathom the idea of working a 9-5 job?  Basically, I have learned that I probably won’t ever be able to retire if I keep things going the way they’re going.

The following is the brief first part of a three-part blog series on THE FUTURE.

Health Savings Account (HSA)

This surgery would have cost a lot less if my dog had an HSA, or insurance for that matter...

When you’re young and healthy, health insurance seems unnecessary.  My monthly insurance premium just went up to $400 dollars!  What what what????  So, I found a new health plan that wasn’t swindling me out of money every month.  The plan I found is considered catastrophic health insurance.  Those plans have a lower monthly premium and a higher deductible, which, if you are unaware, means that you pay less each month, but just in case something really really bad happens, you only pay a few thousand dollars out of pocket and your insurance covers the rest. Sounds good to me, but where am I going to come up with an extra few thousand dollars?  I don’t have it just lying around, so I’m going to open up a Health Savings Account (HSA), just in case.  Money will go into my HSA every month, they’ll give me a debit card, and I can use the money in my HSA (which is MY money, forever, so there) for anything health related over the years, without getting taxed on it.  There might be exceptions here and there, but the cool thing, is that the extra $100+ that I’m not giving to my evil health insurance anymore can go right into an HSA, and it’s still mine – it’s just put away for my future – and if I get to retirement age with no serious illnesses, I can take out all of my HSA money without getting taxed on it, kind of like a Roth IRA.  Which brings me to When I’m 64: Part 2 of 3.


2 Responses to “When I’m 64: Part 1 of 3”

  1. You have a very nice voice and I understand your saving money troubles. I may have posted a comment in conjunction with one of your songs but not sure it got sent.

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