Happy Wednesday,

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 truth about why holding cash costs you wealth

• Where to put your money for safety and growth

• Tariff aid, Santa season coming and more

Read time: 2 min 50 seconds

💰 Wealth Tip of the Week

I grew up watching my parents practically hide cash under mattresses and inside shoe boxes.

Whenever I asked why, my mom would say:

“This is safer.” I believed that for years.

According to a GOBankingRates survey, nearly 25% of Americans say the safest place to keep their cash is at home.

Which is probably why, when I started making money, I did keep the same mindset.

I kept $25,000 sitting in my checking account because seeing that number made me feel responsible.

Then a friend asked me:

“What’s that money actually doing for you?”

Turns out… nothing. My bank paid 0.15%. Inflation was 6% (at the time).

Holding too much cash is one of the most expensive “safe” habits you can have.

Today’s edition: I’ll share the assets that are safer than cash.

1. The Lie Cash Tells You

In 1923, Germans used wheelbarrows full of cash to buy a loaf of bread. Not because they were rich but because their money became worthless overnight.

That's an extreme example. But the same thing is happening to your cash right now, just slower.

Keeping money in the bank feels responsible. The number grows (by a few dollars), and psychologically, 

that’s enough to trick us into thinking we’re getting ahead.

But here’s the truth:

• Average savings rates: 0.4%

• Recent inflation: 2.9–3.6%

You’re not building wealth but you’re losing purchasing power.

If you made $10,000 through sweat, overtime, and stress… one year later, that same $10,000 buys less. And if you save for three years? The loss compounds.

This is called money illusion — our brains focus on the number, not what the number can buy.

Cash doesn’t protect you from inflation. It feeds it.

I used to do this too, so I’m curious…

What’s the number you need to have in your checking account in order to feel safe?

(anything below $900 freaks me out)

Hit reply! I’d love to hear it.

2. Where Your Money Should Actually Go

Cash is the worst employee. It shows up every day and does absolutely nothing.

Your money has one job: grow.

Here are the assets that actually preserve and build wealth — ranked in no particular oder:

1. Government Securities (Safe & Stable)

• Treasury bills, notes, and bonds backed by strong governments.

• Better yields than savings accounts, and one of the safest places your money can go.

2. Precious Metals (Inflation Hedge)

• Gold and silver tend to rise when inflation spikes.

• You don’t need physical gold, gold ETFs make it easy.

3. Industrial Commodities (Demand-Driven Growth)

• Copper, cobalt, nickel — materials used in tech, EVs, and infrastructure.

• Prices can rise sharply when demand surges.

4. Safe-Haven Currencies (Stability During Turmoil)

• The Swiss franc, British pound, and other stable currencies protect against geopolitical shocks.

5. High Value Stocks/Equities (my favorite)

• Blue Chip companies, Index funds, ETF’s are my bread and butter when it comes to build wealth

• In my opinion the easiest to get into and to stay consistent in (invest!)

6. Real Estate & REITs (Scarcity + Cash Flow)

• Real estate has historically outpaced inflation.

• If you can’t buy property yet, REITs give you exposure with one click.

7. Collectibles (For Advanced Investors)

• Rare art, vintage cars, watches. 

• Not for beginners, but huge upside if you know what you're doing.

3. Organize Your Money So It Actually Grows

Most people make cash mistakes without realizing it.

They save too much, invest too little, or keep money in the wrong place.

The easiest way to avoid this is the 5-Year Rule:

• Money you’ll need in the next 0–5 years → keep safe.

• Money you won’t need for 5+ years → invest.

Your emergency fund is the only cash that should stay liquid. Everything else should be working.

And the best way to stick to this consistently is automation.

On payday, your money should move before you ever see it:

• Emergency Fund - This is your safety buffer. I keep mine in a HYSA (high-yield savings account) so it earns 4–5% while staying accessible. 👉 Here are my top HYSA recommendations I personally use.

• Short-term Goals - Money you’ll need in the next 0–5 years (travel, car, wedding, down payment). I keep this in a HYSA or short-term bond fund so it grows without risk.

• Investments - Money you want to grow long-term. This is where compounding actually happens. 👉You can see my portfolio and what I’m investing in here.

• Bills - Essentials with fixed due dates (rent, utilities, debt payments). Automating these removes mental load and prevents late fees.

I share the exact system for your payday routine and I walk you through it in detail. 👉Click here to check it out.

The smarter you place your money, the less you’ll rely on “feeling safe,” and the more you’ll be safe.

I’m excited to see how different your finances look once your cash finally has a better home.

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📉 Market Recap

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

• Trump announces $12B in aid to help farmers hurt by the tariffs

• Gold and silver prices hit record highs as tariffs and tech demand surge

• Santa Claus rally may start soon but the market needs patience

• Consumers are ending 2025 feeling more pessimistic as inflation and job worries rise

👀 In Case You Missed It

If you’ve ever felt behind, this video reveals 9 signs you might be richer than you think.

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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