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Being self-employed, I don't have the luxury of health insurance offered by my employer. As a result, I went a long time without it. I was under the impression it was just too expensive. I won't lie to you, it can be. But if you play your cards right, it doesn't have to be.

In my situation. I don't visit the doctor unless I have to, but I have to be covered in case of an emergency, like pneumonia or something similarly expensive. So I looked into a high-deductible policy. What I found was a $5000 deductible at about $150 per month. Most people would automatically dismiss that because of the 5 grand but if you break it down, it's not so bad.

Let's say you sprain your ankle and your doctor takes x-rays. It happened to me. Went to the hospital and had them done. A week or so later, got a bill for $990. If I were uninsured, that's what I would have had to pay. But, because I had my insurance (Blue Cross), that number was knocked down to $144.10. That is the amount I had to pay. Pretty much paid my premium for a few months!

In addition to having a high-deductible policy, I can take advantage of a Health Savings Account (HSA). You've probably heard of them but no one really explains fully what they are in layman's terms.

An HSA is a savings account that you can deposit money into and use for medical expenses. Individual yearly deposits are limited by your deductible or a predetermined cap, whichever is less. In 2008, the limit is $2900. The limit is increased annually for cost-of-living purposes. If you're over 55, the limit increases by $500. This deposit can then be deducted on your income tax form and you do not have itemize to take advantage of it. And all interest earned is tax-free.

It is not a use-it-or-lose-it account! The money can roll over year after year.

Again, we'll take myself as an example. I can deposit $2900 in the HSA. I then deduct that money from my income tax (rate of 15%) so I see an immediate savings of over $400 in less taxes. That covers nearly 3 months of premiums alone.

And you don't have to take out the money from your HSA if you can afford not to. I tend to leave mine in and let it build tax free until I absolutely need it for medical expenses.