Health Savings Account. Where Does This Go in the Budget? Investors Ask Natalie.

Health Savings Account. Where Does This Go in the Budget? Investors Ask Natalie.
Updated Nov. 4, 2025

On the basis of the Thrive Budget, what slice of the pie is an HSA in, and at what percentage? Signed, Looking to Thrive, Instead of Feeling Buried Alive in Bills
 
Dear Healthy, Wealthy and Wise,
 
Health insurance is definitely on the basic needs side of the Thrive Budget because health insurance, taxes, food, lodging, transportation, debt repayment – all the costs and responsibilities of living in the modern world go there. The Thrive side is very easy:
 

1. Invest (pay yourself first and earn money while you sleep),
2. Be charitable (charity is the best networking, where you find your people),
3. Education (the highest correlating factor with income, and,
4. Fun (free happy hormones which promote health and happiness).

 
If you haven’t already mocked up your own personalized Thrive Budget, email [email protected] for a link to our free web app.
 
While the cost of health insurance is part of your survival plan, the Health Savings Account is a retirement plan, on the Thrive side of the budget, in the “pay yourself first and invest in a tax-protected retirement account” slice. In terms of percentage, there is a cap on the annual contribution: $4,300 if you are single and $8,550 for families. (This could increase in the coming years.) If you are on Medicare, you no longer qualify to contribute but could substantially benefit from the HSA if you have already accumulated a lot in that account.
 
This is one of the reasons why it is important to start an HSA with our first job. The HSA is the best long-term healthcare plan. Instead of paying premiums for supplemental Medicare, we could have a cache of money that can be used for health care costs that won’t disappear if we can’t make the monthly payment. In the event we don’t need to use all the funds, the HSA money will go to our designated beneficiary.
 
An HSA can also help to lower costs on the survive side. We must purchase a high-deductible health insurance plan to qualify for the HSA, which lowers the premiums dramatically from a low-deductible plan. Many people report savings of thousands annually. Some save tens of thousands. That’s a lot of money that is now available for investing, charity, education and fun – things most of us like a lot more than paying bills. We also receive a tax deduction for the contribution to our HSA. Essentially, with an HSA, we stop making the health insurance company and the taxman rich at our own expense.
 
Health savings accounts work best when we are healthy and let the money accumulate and start compounding gains (through investing) instead of dipping into it constantly for every office visit. It’s a great idea to save up three years of our total out-of-pocket costs in cash or short-term (high-quality) fixed-income investments before taking on more risk (equities), so that in the event of an unexpected illness or accident, we can cover our high deductible and co-pays without selling stock. While we’re saving up, the funds will be part of the safe side of our nest egg pie chart. Once we start investing in stocks, we will have “at-risk” slices in our HSA, too. This will make more sense if you’ve attended my Financial Freedom Retreat and read The ABCs of Money, 6th edition.
 
I discuss HSAs in my recent tax blog. Be sure to check that out.
9 Tax Tips to Cut Your IRS Bill in Half and Save Thousands Annually.



​Join us at our online Spring Financial Freedom Retreat April 25-27, 2025 (online) and our Stock Masterclass (learn the strategies that earned me the ranking of #1 stock picker) on May 3, 2025. If you'd like a life-changing adventure of a lifetime, be our guest at a royal manor house in Cornwall, England, March 12-19, 2027. (With just nine rooms available, this exclusive, private, bucket-list adventure sells out a year in advance!) Call 310-430-2397 or email [email protected] to learn more. 

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* Invest in hot industries, such as Nvidia, artificial intelligence, and quantum computing,
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* Easy and efficacious nest egg strategies,
* Get hot and diversified (including in artificial intelligence, quantum computing and crypto),
* Evaluate stocks,
* Avoid capital gains and financial predators,
* Keep an age-appropriate amount safe, and,
* Know what's safe in a Debt World.

You'll even discover how to save thousands annually with smarter big-ticket choices. Yes, it's a complete money makeover. 
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Email [email protected] or call 310-430-2397 to learn more and register. Learn the 15+ things you'll master and read testimonials in the flyer on the home page at NataliePace.com. Register with friends and family to receive the best price. ​

"Ten minutes into the first day I was already much smarter about investing than I ever thought I would be in my life and I knew I was in exactly the right place at this retreat. I am amazed at how EASY and FUN it is to make my money work for me and those I love. I think this kind of information should be compulsory in schools. I wish I'd learned this sooner." CM

If you’d like an unbiased 2nd opinion on your current wealth plan, email [email protected] for pricing and information.

Join us for our Online Spring Financial Freedom Retreat April 25-27, 2025. Email [email protected] or call 310-430-2397 to learn more. Register with friends and family to receive the best price. Click for testimonials, pricing, hours & details.

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Natalie Wynne Pace is an Advocate for Sustainability, Financial Literacy & Women's Empowerment. Natalie is the bestselling author of The ABCs of Money (6th edition) and The Power of 8 Billion: It's Up to Us, and is the co-creator of the Earth Gratitude Project. She has been ranked as a No. 1 stock picker, above over 835 A-list pundits, by an independent tracking agency (TipsTraders). Her book The ABCs of Money remained at or near the #1 Investing Basics e-book on Amazon for over 3 years (in its vertical), with over 120,000 downloads and a mean 5-star ranking. The 6th edition of The ABCs of Money and the 2nd edition of Put Your Money Where Your Heart Is (2nd edition) are the most recent releases of these books. Follow her on Instagram. 
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Natalie Pace's easy as a pie chart nest egg strategies earned gains in the last two recessions and have outperformed the bull markets in between. That is why her Investor Educational Retreats, books and private coaching are enthusiastically recommended by Nobel Prize winning economist Gary S. Becker, TD AMERITRADE chairman Joe Moglia, Kay Koplovitz and many Main Street investors who have transformed their lives using her Thrive Budget and investing strategies. Click to view a video testimonial from Nilo Bolden.​​

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Important Disclaimers
Please note: Natalie Pace does not act or operate like a broker. She reports on financial news, and is one of the most trusted sources of financial literacy, education and forensic analysis in the world. Natalie Pace educates and informs individual investors to give investors a competitive edge in their personal decision-making. Any publicly-traded companies, funds or projects mentioned by Natalie Pace are not intended to be buy or sell recommendations.

ALWAYS do your research and consult an experienced, reputable financial professional before buying or selling any security, and consider your long-term goals and strategies. Investors should NOT be all in on any asset class or individual stocks. Your retirement plan should reflect an age-appropriate, diversified wealth plan, which has been designed strategically, with the assistance of financial professionals who are familiar with your goals, risk tolerance, tax needs and more. The "trading" portion of your portfolio should be a very small part of your investment strategy, and the amount of money you invest into individual companies should never be greater than your experience, wisdom, knowledge, patience and diversified strategy.  
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Information has been obtained from sources believed to be reliable. However, NataliePace.com does not warrant its completeness or accuracy. Opinions constitute our judgment as of the date of this publication and are subject to change without notice. This material is not intended as an offer or solicitation for the purchase or sale of any financial instrument.