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.

Today’s edition:

• The inflation-proof moves that protect your wealth

• Why your buying power is shrinking

• Bitcoin swings, Government shutdown ends, and more

Read time: 3 min 25 seconds

💰 Wealth Tip of the Week

Last week, I grabbed my usual lunch. Nothing fancy, just a sandwich and coffee.

The total? Almost $20.

I stared at the receipt thinking, When did this become normal?

It’s not that I’m spending more. It’s that my money’s worth less.

And the culprit is inflation: the invisible force raising the price of everyday items and quietly shrinking your buying power every year.

So if your salary goes up 5%, but inflation runs at 7%, you’ve actually lost buying power.

In fact, according to the U.S. Bureau of Labor Statistics, prices have jumped over 20% since 2020. A $100 grocery run back then now costs around $120 today.

So how do you keep your wealth growing when the value of money keeps falling?

Here’s what I started doing differently and what I’ve seen smart investors do to stay ahead.

1. Understand the Real Cost

Most people look at how much money they make, not what that money can buy.

You can earn more every year, but if prices rise faster, your standard of living quietly slips.

This is what economists call “real return.”  Your nominal return is what you see on paper but your real return is what you actually keep after inflation and taxes.

For example, If you made 10% last year, but inflation ran at 7%, your real gain was only  ~3%.

Always measure your wealth in purchasing power, not just profit.

2. Focus on Pricing Power

Inflation doesn’t just hurt consumers. It crushes weak businesses too.

So what does all this mean for your investments?

When costs go up, companies have two options:

• Absorb higher costs and make less profit

• Raise prices and risk losing customers

Few companies can raise prices and still keep customers. But the ones who can will make big money. That’s pricing power and it’s gold during inflation.

Here’s how to spot companies worth looking into when you invest:

1. They sell something essential — people keep buying even when prices rise

2. They have loyal customers — the kind who stick around despite higher prices

3. They keep costs manageable — AKA avoiding heavy debt or expensive materials

You can take a look at how I’m positioning my portfolio for inflation. See what I’m investing in here.

3. Diversify Into Real Assets

Cash loses value over time and that’s guaranteed.

But assets like stocks, real estate, and commodities tend to rise with inflation.

Historically, the S&P 500 has outpaced inflation over the long term

That’s why I started shifting part of my savings into assets that grow when prices rise instead of keeping it in cash where it’s losing value.

The Inflation Game Plan:

1. Start small. Shift even 5–10% of your savings into assets that rise with inflation like index funds and ETFs so your money keeps working instead of sitting idle. Here’s the brokerage I personally use if you want to start.

2. Keep balance. Hold enough cash for emergencies, but let the rest grow. Rebalancing every few months keeps your portfolio steady when prices move.

3. Think long-term. Inflation hurts short-term gains, but consistency compounds. Stay invested. The market rewards patience, not panic.

4. Invest in Yourself

When everything else loses value, skills don’t.

As Naval Ravikant said in The Almanack of Naval Ravikant, “Learn to sell. Learn to build. If you can do both, you’ll be unstoppable.”

Upskilling is the only investment guaranteed to outpace inflation because it increases your earning power.

Even if prices rise, you can command more for your time, your talent, and your ideas.

Start like this:

1. Pick one skill that earns.

2. Learn a little every day, even if it’s only 30 minutes.

3. Apply it fast through small projects or side gigs.

Here are some free learning platforms you can try:

• Coursera — business, finance, and personal development courses

• HubSpot Academy — marketing, sales, and business growth

• Google Digital Garage — digital skills and career tools

• YouTube — tons of free tutorials for creative and tech skills

• LinkedIn Learning — solid for leadership and business strategy

Inflation may eat away at value but not at growth. Because every time you choose to learn, invest, or improve, you’re quietly taking your power back.

Here’s to growing faster than prices ever could.

📉 Market Recap

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

• Bitcoin & Ethereum faces major options expiry, expect price swings

• 43-day shutdown ends as paychecks, food aid, and travel return to normal

• Tech stocks slide after the worst day this month and your 401(k) likely took a hit

• Fed rate cut uncertain, borrowing costs may stay expensive

👀 In Case You Missed It

Curious how $20K can transform your entire money situation? I I share the breakdown in this vid.

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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