Health Savings Account

Is a Health Savings Account the Best Option for You?

If you are trying to find the best way to put money away into a health savings account there are a few things you need to determine before you can decide on the best way to manage your money.

When looking at the best way to manage you money in the event that you might need for a health related event, there are some basic indicators that you can use to assess how much you will need, where you should keep it and how risky you should be with your investment. Essentially your age, your current financial status and your overall financial goals are the three most important factors that you should consider when deciding to save for a health related event such as pregnancy, an operation or any kind of major emergency.

Let's take a moment to examine each factor in a little more detail:


If you are young and single, then you theoretically have a little more time on your side, are less likely to need the money for health purposes in the short term and hence you have a little more freedom in terms of how you invest your money. Rather than opting to put your savings into a standard interest paying savings account with a low interest rate where you can get access to it at short notice, you can opt for a savings plan that is a little more risky - perhaps some kind of managed fund.

Financial Status

If you have a strong regular income then you can probably afford more risky money management options. Stocks tend to be more of a risk but they do offer a larger payout which is why they are ideal for emergency funds and for a superannuation (401K) plan. If you have a surplus of cash each pay day and you don't need the money but are happy to invest it until such time as you do need it then shares might be your best option.


If your aim in putting aside some money for health, is to pay for any emergencies that arise, then some risky investment strategies are probably fine because you can still access the funds within a day or two anyhow. If however you are putting away some money for a planned operation, then having a more traditional savings plan such as a term deposit is probably the best way to go.

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