🚨IMPORTANT: 40 million Americans have an HSA, but most are using it...
The Money Cruncher, CPA@money_cruncher
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Jan 18, 2026
~2 min read
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🚨IMPORTANT: 40 million Americans have an HSA, but most are using it like a checking account.
Here's how the 1% uses their HSA and how you should too:
Here's how the 1% uses their HSA and how you should too:
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How most people use HSA:
A medical bill comes in.
HSA is sitting in cash. They use an HSA debit card to pay for it.
But that's not the best approach...
A medical bill comes in.
HSA is sitting in cash. They use an HSA debit card to pay for it.
But that's not the best approach...
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Most HSA plans allow you to invest the balance.
I'm required to keep $500 in cash in the plan. The rest can be invested.
And that's exactly what I do. I invest the rest in the S&P 500.
But that's just part 1 of the strategy...
I'm required to keep $500 in cash in the plan. The rest can be invested.
And that's exactly what I do. I invest the rest in the S&P 500.
But that's just part 1 of the strategy...
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When a medical bill comes in, I don't pay it with HSA debit card.
I pay the balance with my credit card.
Then, I take a picture of the bill, credit card statement, and receipt, and upload it on the Drive.
Like this:
I pay the balance with my credit card.
Then, I take a picture of the bill, credit card statement, and receipt, and upload it on the Drive.
Like this:
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I will track all these expenses for the next 10-15 years. Then, use my HSA to reimburse myself for ALL prior expenses.
By reimbursing it just means withdrawing from your HSA and transferring to your bank.
But it's very important to keep track of ALL receipts.
By reimbursing it just means withdrawing from your HSA and transferring to your bank.
But it's very important to keep track of ALL receipts.
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Of course, this strategy assumes that you are able to pay for all medical expenses out of pocket (with your credit card).
If you cannot afford to do so, then just use HSA balance rather than getting yourself in 25% interest debt.
If you cannot afford to do so, then just use HSA balance rather than getting yourself in 25% interest debt.
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So, the main proposition of this strategy is simple:
Don't hinder the tax free growth every time you have a medical expense, like an annual check up.
We want the HSA to grow as much as possible first, by investing it for 10+ years.
Don't hinder the tax free growth every time you have a medical expense, like an annual check up.
We want the HSA to grow as much as possible first, by investing it for 10+ years.
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Another note:
After age 65, you can withdraw from an HSA for any reason. That's why some people call it the "silent IRA"
Note that income taxes will apply (similar to like a traditional IRA), unless used for medical expenses.
So, there's no risk of growing it "too much"
After age 65, you can withdraw from an HSA for any reason. That's why some people call it the "silent IRA"
Note that income taxes will apply (similar to like a traditional IRA), unless used for medical expenses.
So, there's no risk of growing it "too much"
