Unplanned health expenses can sink you into bankruptcy faster than anything, so it’s important to have health insurance if it’s available and affordable. And for tax savings, if you don’t already have one, an HSA may be something you should consider, depending on a number of case-specific factors. If you don’t already have an HSA set up and have determined that you should contribute to one next year, I would recommend creating a spreadsheet now of all of your out-of-pocket medical expenses for the year to determine how much to contribute to your HSA next year. You may determine that you need to contribute the limit, which was $3,400 for individuals and $6,750 for families for tax year 2017.
You don’t lose your HSA contributions, but I personally prefer not to overbudget when I can use that money to pay off debt. If you have zero debt, apparently you can use it as an investment tool. I’m not a financial adviser, and I’m not your attorney, so consult a professional for advice, particularly advice specific to your situation. 🙂
All that said, a health expenses spreadsheet is easy enough; you can just grab a sheet of notebook paper and note the dates bills were paid, to whom or what entity, and how much. Then at the end of the year, you will be able to add the numbers. You can also use a spreadsheet if you choose.
Time required: 15 minutes for me, but it’s early enough in the year that I haven’t paid any medical bills . . . yet.