Three Essential Money Hacks That Should Be Obvious (But Aren't)

Since finishing school and starting my career, I've noticed that some of the most effective strategies for building personal wealth and savings are surprisingly straightforward. These three simple actions have significantly helped me grow my personal finances and are incredibly easy for almost anyone to implement right away.

1. Maximize Your Employer-Sponsored Retirement Plan

For new employees, investing in a Traditional or Roth 401(k) should be the most obvious financial move. The common adage, "time in the market beats timing the market," rings true; the earlier you start, the better you can take advantage of compound growth.

This benefit is magnified when your employer provides a matching contribution, whether that percentage is 3-5% or more. Contributing at least enough to earn the full match is a guaranteed, immediate return on your money—a true financial "no-brainer."

My Personal Preference: Roth 401(k)

Personally, since starting my contributions right out of college, I have preferred the Roth 401(k) option. I would rather pay taxes on the money upfront now and have all future growth and distributions be entirely tax-free in retirement. Given the potential for unpredictable future taxation codes and socio-economic shifts, securing myself against future tax increases feels like a safer, non-gambling strategy. However, the decision between Traditional and Roth is subjective and depends entirely on individual current and projected income levels, so this choice simply reflects my own preferences and long-term outlook.

2. Leverage a High-Yield Savings Account (HYSA)

Another essential, easy money hack is moving uninvested cash into a High-Yield Savings Account (HYSA). Numerous financial providers currently offer competitive rates, with many of the biggest players offering Annual Percentage Yields (APYs) in the range of 3% to 4.5% or higher.

I prefer to use established, trustworthy institutions for these services, such as American Express, which has a long-standing reputation. As of the writing of this article, their HYSA offers a 3.5% rate on held funds.

In the current environment of elevated interest rates, an HYSA is a superior alternative to letting money sit dormant in a standard savings or checking account that earns near-zero interest. Crucially, unlike Certificates of Deposit (CDs) where your money is locked away, an HYSA provides you with the dual benefit of accumulating interest while maintaining immediate liquidity and access to your funds.

3. Utilize the Triple-Tax Advantage of an HSA

The third money-saving method that I now appreciate more than ever is the Health Savings Account (HSA). This is often called the most tax-advantaged account available in the US, providing a triple benefit: contributions are tax-deductible, the money grows tax-free, and withdrawals for qualified medical expenses are tax-free.

My strategy involves keeping a cash buffer (about $1,000) in the HSA for routine bills and investing the remaining funds within the account. This year, I decided to max out my HSA contributions and plan to continue doing so going forward.

When you're young, you often feel invincible, but with age comes the insight that mismanaging your health can be one of the most devastating expenses—physically, mentally, and financially. Contributing to an HSA is an excellent way to save money on routine medical visits now while also building a potential longevity and health fortress—a tax-free medical retirement fund—for your long-term well-being.