Happy Monday,

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

I hope y’all had a wonderful valentine’s day. I had the privilege of spending the entire day with my girlfriend, cooking and watching the notebook musical (it was amazing).

Today’s edition:

• How small “normal” purchases quietly drain your wealth

• A framework for eliminating financial blind spots

• Bitcoin dips, Netflix deal drama, and more…

Read time: 3 min 50 seconds

🍎Wealth Tip of the Week

When people talk about “wasting money,” you often imagine extremes.

Luxury cars. Designer brands. Fancy dinners every night.

But that’s not where most of the damage happens.

The real problem is that many costs are designed not to feel like costs. And that’s exactly why money problems sneak up on people.

Because the most expensive habits in your life don’t feel irresponsible. They feel normal.

A subscription you keep “just in case.

A purchase justified because it’s for health, productivity, or self-care.

A monthly payment that feels small enough to ignore.

None of it feels reckless at the moment. So nothing triggers alarm.

I’m exposing five things quietly draining your money that seem completely normal but aren’t.

1. Extended Warranties on Everything

The salesperson leans in: “For just $50 more, we’ll protect your purchase.”

It sounds responsible and feels smart. The truth is, It’s neither.

Retailers make up to 80% profit margins on extended warranties. Most electronics don’t even break during the warranty period, and when they do, repairs often cost less than the warranty itself.

For example, Consumer Reports shows that when you buy extended coverage on laptops, only 15% of owners ever use it for repairs.

What actually works:

• Buy reputable brands

• Read reviews

• Understand the return policy

And here’s the part almost no one knows: many credit cards automatically double the manufacturer’s warranty.

You already have protection. You're just paying extra because no one told you.

2. Subscriptions You Forgot Exist

You signed up once then forgot about it. Six months later, you’re still getting charged.

Streaming services. Gym memberships. Meditation apps. Meal kits you used twice.

They feel harmless with $10 here, $15 there. But these charges compound quietly.

Behavioral economist Richard Thaler calls this 'mental accounting' where each charge lives in its own mental bucket, so you never see the total. 

The average person wastes over $2,000 a year on subscriptions they don't use.

Here’s the fix: 

• Quarterly, scan your statements.

• Cut anything unused in the last month.

And here's what most people miss: that $2,000/year, invested in a High-Yield Savings Account earning ~4%+, becomes $2,080 after year one. Do nothing, earn $80. 👉 Start earning here!

Stop spending on autopilot and redirect toward real goals.

3. "Investments" That Aren't Investments

“This $2,000 gaming PC is an investment in my happiness.”

“This $800 espresso machine is an investment in my productivity”

No. They're not.

If a $800 espresso machine is an investment, then $3,000 shoes are too… because they make you feel “confident”. That's rationalization bias where dressing up a want as a need.

Here's the actual definition: an investment is something that can make you more money over time.

The real issue isn’t buying nice things or investing into yourself. It’s that we don’t feel comfortable admitting we want them, so we label them as “smart financial decisions” to feel better about spending.

What real investing actually looks like is putting money into assets like:

• Commodities

• Crypto currency

• index funds or stocks

• Real estate

I’d even accept your education, health and skill set as investment….

As long as it’s within reason and actually benefit your life/income potential.

These are things designed to grow your money, not just improve your lifestyle.

If you don't know how to start investing, I made a super simple beginner’s guide to walk you through the basic steps. 👉 Watch it here. Let’s go!

4. Buying Cheap Now, Promising to Upgrade Later

This is one of the most expensive lies we tell ourselves.

“I’ll just get the cheap version for now and upgrade later.”

It usually ends the same way:

• it breaks

• it underperforms

• or it’s so frustrating that you replace it

So you buy it again. And again. This doesn’t mean you should buy the most expensive option either. That’s not the lesson.

The real distinction is this:

• If you’ll use it rarely, cheap is usually fine.

• If you’ll use something often or depend on it, quality matters more than price.

Before buying, ask yourself these 3 questions:

1. Will I use this weekly (or daily)?

2. Will it frustrate me if it doesn’t work well?

3. Would replacing it cost more in the long run?

If the answer is yes, don’t rush. Save for the version that actually works.

And if it’s out of reach today, that’s not a signal to buy the cheapest option. It’s a signal to wait.

Waiting may feel boring, but buying the same thing twice is far more expensive.

5. Purchases That Make You Look Rich

Designer sunglasses, luxury cars you can’t afford, and apartments that eat up 40% of your income all have one thing in common: they’re usually bought for how they look, not how they serve your life.

Economist Thorstein Veblen called this "conspicuous consumption," which means spending to signal status rather than gain utility.

Here’s the reality: 78% of people live paycheck to paycheck. They’re simply trying to keep up with one another.

Status purchases don’t create financial security. They quietly drain it, month after month, while giving the illusion of progress.

Instead of asking, “Does this make me look successful?” ask, “Does this actually improve my life?”

Here’s a simple way to check:

• Would you still want this if no one else saw it?

• Would you still pay for it if it didn’t show up online?

Spend intentionally on the things that genuinely matter to you and make your day-to-day life better.

At the same time, cut ruthlessly on purchases that exist only to signal status.

If you’re doing even two of these consistently, you could waste $700,000+ over your lifetime.

And if that same money were invested instead, it could grow to nearly $3.7 million.

You don’t need to cut everything.

You just need to stop letting money leak out unnoticed and start directing it toward the life you actually want.

💬Quote of the Week

📉 Market Recap

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

• Bitcoin is down, but big Bitcoin investors just bought $4B

• Netflix-Warner Bros $83B deal is under pressure as big investor opposes

• U.S. budget deficit drops to $95 billion in January but interest costs still rising

• Lyft stock drops 15% despite strong profit report

👀 In Case You Missed It

If you’re new to investing, watch this before you make the same mistakes I did.

See y’all next week 🫡

- Angelo Castillo

Disclaimer: This is not financial advice or investment recommendations. The content is for informational purposes only, and it should not be considered as legal, tax, investment, financial, or other advice.

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