Hey,
It’s Monday, which means another Making Cents with Mouni is here. We’re keeping the momentum going from last week’s milestone (six months + 100 subscribers 🎉) and putting that energy into the next Money Map step: Max Tax Perks.
Let’s be honest, few things feel more confusing (or boring) than taxes. But here’s the good news: you don’t have to outsmart the tax code to win. You just need to use the tools sitting right in front of you.
Step 7 of the Money Map is about exactly that: maximizing the tax perks the system already gives you. No loopholes, no gimmicks—just simple accounts that can quietly add hundreds of thousands of dollars to your future wealth if you let them do their thing.
The two I’m talking about? The Roth IRA and the HSA (if you qualify). |
The Roth IRA: Your Tax-Free Growth Engine 🚀
Let’s clear up a big misconception first: a Roth IRA is not an investment itself. It’s an account, like a container. You open the container, and then choose what to put inside it. That could be a low-cost index fund, a target-date retirement fund, or other investments that fit your goals. |
How it works: You contribute after-tax dollars (you’ve already paid tax on the money). Inside the account, your investments grow without being taxed year after year. When you take money out in retirement, it’s also tax-free.
Why it matters: Imagine putting $7,000 in every year from age 25 to 55. With compounding, that money could grow to nearly a million dollars. And every single dollar of growth is yours—no tax bill waiting at the end.
Flexibility: You can always pull out your original contributions (just not the earnings) without taxes or penalties. That makes the Roth a little more flexible than most other retirement accounts and can act as a pseudo-emergency fund if necessary (please don't take money out if you don't need to.)
2025 limit: $7,000 per year (or $8,000 if you’re 50+).
If you only take one step this week, it’s this: open a Roth IRA if you don’t already have one. You can do it in 15 minutes at Fidelity, Vanguard, or Schwab. Set up an automatic contribution, even if it’s just $50 a month. And then invest the money—don’t let it sit idle in cash.
My personal Roth IRA is in M1 Finance. Ask me why!
The HSA: The Triple-Tax Unicorn 🦄 If you have a high-deductible health plan (HDHP), you’re eligible for what might be the most powerful account of all: the Health Savings Account (HSA).
The HSA is the only account with a triple tax advantage: |
Money goes in pre-tax (you save on taxes now).
Money grows tax-free (investments compound untouched).
Money comes out tax-free if used for qualified medical expenses.
Even if you don’t touch it for years, HSA funds never expire. They roll over indefinitely, which means you can treat the HSA like a stealth retirement account. Pay smaller medical bills out of pocket, save your receipts, and let your HSA investments keep growing. Later on—whether it’s 10 or 30 years from now—you can reimburse yourself tax-free for your health-related costs.
It sounds counterintuitive, but if you can manage, DON'T SPEND your HSA funds. Pay out-of-pocket for medical expenses to let your HSA continue growing tax-free.
2025 limit: $4,300 (self-only) or $8,550 (family). Add $1,000 if you’re 55+.
Pro tip: Many HSAs have a “cash” portion and an “investment” portion. Once your balance clears the minimum, move your money into investments. Otherwise, it just sits earning pennies.
Why These Two Come Before Other Accounts
If you’ve paid attention to the Mouni Money Map you’ll notice Roth IRAs and HSAs appear before maxing out a 401(k) or investing in taxable brokerage accounts. Why? |
Tax-Free Buckets: Roth and HSA balances give you money in retirement that the IRS can’t touch. Having this “tax-free bucket” gives you huge flexibility later.
Compounding Uninterrupted: Without taxes dragging on your growth each year, your returns multiply faster. It’s the difference between wealth crawling and wealth sprinting.
Accessibility: Anyone with earned income can open a Roth IRA (within income limits, or via a Backdoor Roth if you’re above them). HSAs are available if you’re on an eligible health plan. Both are far more approachable than most people assume.
In short: these accounts give you the most “bang for your buck” after you’ve handled your financial basics.
Your Next Step
If you don’t already have these accounts: |
Check eligibility. Do you have earned income? You can open a Roth. On a high-deductible plan? You’re HSA-eligible.
Open the account. Use a low-cost provider like Fidelity, Vanguard, or Schwab for a Roth IRA; use your employer’s HSA provider or a trusted brokerage if you’re eligible.
Start small, but start. Automate what you can, even if it’s $25 or $50/month. Momentum beats perfection.
Invest, don’t idle. Choose a diversified fund and let compounding do the work.
Want the Full Playbook?
I wrote a blog post that goes deeper—covering contribution limits, backdoor strategies, and step-by-step tips for investing in these accounts.
Giveaway Reminder To celebrate 6 months + 100 subscribers, I’m hosting a giveaway through October 19: the winner receives a $50 Amazon gift card AND 2 free 1:1 coaching session.
Building wealth isn’t about doing everything perfectly—it’s about stacking small advantages. By using the Roth IRA and HSA, you’re giving future-you one of the biggest advantages out there: money that grows tax-free and stays tax-free. |
With clarity and calm, |
P.S. Some links may be affiliate links, meaning I earn a small commission. No extra cost to you, and I only share what I trust! |
