Happy Tuesday,

Angelo here! Welcome to New Money, where we go over weekly tips to help you build your wealth, one dollar at a time.

Today’s edition:

• The investing lesson hiding inside a simple question.

• $10,000 today, $200/month, or debt-free?

• The Nasdaq selloff, the U.S.-Iran deal, and more…

Read time: 2 min 30 seconds

🍎Wealth Tip of the Week

You can only choose one.

Option 1: $10,000 cash right now.

Option 2: $200 a month invested for 30 years.

Option 3: Your student loan paid off today.

Take five seconds. Which one did you pick?

Most people choose the $10,000. I probably would've too. 

Because money in your bank account today beats money later. Not necessarily.

The interesting thing about personal finance is that the right answer depends entirely on where you're starting.

The same three options can produce three completely different right answers.

Let's see which one is actually right for you.

1. If You Have Student Loans, The Answer Is Probably #3

Paying off debt is also an investment.

Let's say your student loan charges 7% interest. Every dollar you put toward that debt eliminates a guaranteed loss. And before you can build wealth, you have to stop the leak.

There's another benefit too.

Once the loan disappears, the payment disappears. A $300 monthly payment suddenly becomes 

$300 available for investing. You create your own version of Option 2, without needing the $10,000.

The best investment isn't always the one that grows your money. Sometimes it's the one that stops losing it.

Here’s something you can do: Check the interest rate on your student loans. If it is above 6% paying it down aggressively is often one of the highest-return moves available to you right now.

2. If You Have No Debt, The Answer Is Probably #2

I get why people still choose the $10,000. Because it feels bigger. It feels more valuable. 

But the math tells a different story. A $10,000 investment growing at 7% for 30 years becomes roughly: $76,000.

But $200 invested every month for 30 years becomes: $243,000

That's more than three times as much money.

The surprising part is that you only contributed about $72,000 yourself. The other $171,000 came from growth. That's what compounding actually looks like.

And here's something a lot of beginners get wrong. They think building a large portfolio is about finding the next Nvidia, buying the perfect stock, or timing the market perfectly.

It wasn't for me. 

The portfolio that eventually grew to more than $700,000 was built through a handful of boring habits:

• Invested mostly in broad index funds (VTSAX, VOO, QQQM)

• Automated investments every month 

• Reinvesting dividends

• Staying invested when markets fell

• Giving compounding time to work

That’s it. No secret stock picks. No complicated strategy. No getting rich overnight. 

And if you're wondering how much you need to start, probably less than you think.

$50 a month is enough. $100 a month is enough.

The goal isn't to build the perfect portfolio. The goal is to become the type of person who invests every month.

The investor who starts small today usually beats the investor who's always planning to start someday. 

If you're ready to get started, the first step is simply opening a brokerage account and making that first investment!

👉Click here to see the brokerage accounts I personally use

3. If You Have No Savings, The Answer Is Probably #1 

But only if you do one thing first: give the money a job.

A lot of people think money solves financial problems. Usually, systems solve financial problems.

Without a plan, the $10,000 disappears surprisingly fast. A vacation. A few upgrades. A handful of purchases that feel important at the moment. Then one day it's gone.

The cash only wins if it becomes a foundation:

• Emergency fund first

• Investing next

• Everything else after that

Because before you can build wealth, you need stability.That's what emergency savings actually buy you. Not returns but peace of mind.

For example, let's say your monthly expenses are $2,000. A three-month emergency fund would be $6,000. A six-month emergency fund would be $12,000.

And before any money sits idle, make sure it's earning something.

I keep my emergency savings in HYSA where it earns 3.75% APY. My money is working even while it's waiting.

If you're looking for one, I've put together a list of my favorite HYSAs here:

👉 Click here to see my top HYSA picks

Calculate how much three to six months of expenses would be for you. That's often your first investing goal before anything else.

The best financial decision isn't the same for everyone.

It's the one that solves the problem you're facing right now.

That's what makes personal finance personal. 

Now I'm curious: which option did you choose before you read this?

💬Quote of the Week

📉 Market Recap

Check out some of the biggest stories shaking up money, markets, and momentum this week.

👉 Intel is up 550% in a year but the real test is still ahead

Nvidia, Google, Apple and Elon Musk have all announced partnerships with Intel. The U.S. government owns a 10% stake. The stock has soared past $700 billion in market value.

Wallet Impact: Intel's rise is being driven by government backing and big partnerships not profits. The chips are still losing money at scale. If you own broad index funds you already have some exposure.

👉 U.S. and Iran officially sign the interim peace deal ending the war

Both Trump and Iran's president signed the agreement making it effective immediately. The Strait of Hormuz reopens now, Iran can sell oil freely again, sanctions waivers are granted, and $24 billion in frozen Iranian assets are unlocked.

Wallet Impact: SThis is the most significant development for your wallet in months. Oil flowing freely through the Strait again means gas prices and shipping costs should come down. 

👉 SpaceX surpasses Amazon in market value just days after its IPO

SpaceX shares have surged 56% since its June 12 debut, pushing its valuation to $2.66 trillion. Lock-up periods expire over the next 180 days meaning early investors will soon be able to sell.

Wallet Impact: The excitement is real but so is the risk. Only 5% of SpaceX shares are currently available to trade which is artificially inflating the price. When lock-up periods expire and early investors can sell that supply increases fast. 

👉 Nasdaq 100 is on track to lose over $1 trillion today as tech sells off hard

Chip stocks are tumbling, SpaceX has lost over $600 billion in market value in just three sessions, and six of the Magnificent Seven are in the red.

Wallet Impact: If your portfolio is heavy in tech or AI stocks this week hurts. If you hold broad index funds you are feeling it too but less severely. Red days after a big run are normal.

👀 In Case You Missed It

If I had to start over at 18 with no portfolio, this is exactly what I'd do. In this video, I share the ETF portfolio I'd build from scratch.

 🌱More ways I can help build your wealth

See y’all next week 🫡

Angelo Castillo

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