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:

• Why more money still doesn't feel like enough

• The 3 patterns that keep people stuck in the paycheck-to-paycheck cycle

• US-Iran peace deal, Anthropic’s billion revenue and more…

🍎Wealth Tip of the Week

Why more money still doesn’t feel like enough. 

Money has a strange habit: it expands to match your lifestyle. 

It is what happens when your income quietly rises but your expenses rise with it. 

And it explains why about 63% of Americans are still living paycheck to paycheck, including a surprising number of people making six figures.

Financial stability is rarely built through one giant decision.

It’s built through understanding the patterns quietly shaping your paycheck.

That is why I am sharing the three patterns that actually break the paycheck to paycheck cycle.

Pattern 1: The One You Cannot See  

A raise feels like progress. Then somehow nothing changes.

The apartment gets a little nicer.

A few conveniences become part of everyday life.

Things that once felt like luxuries slowly become normal. None of these decisions are necessarily bad. In fact, many of them genuinely improve your quality of life.

The problem is that they often happen automatically. And when every upgrade quietly expands your spending, a bigger paycheck can end up feeling exactly like the smaller one did.

That is why lifestyle inflation is so difficult to spot. It rarely feels like a big decision. It feels like a series of small, reasonable ones.

In fact, millennials spend an average of $478 per month on nonessential purchases like dining out, vacations, shopping, and entertainment. 

The trap is never deciding which upgrades are actually worth keeping.

Here’s a quick win:

Pull up your bank statements from last month. Highlight every purchase that falls into one of these categories:

• entertainment

• subscriptions

• impulse purchases

• eating out

Then ask yourself one question: "Which of these genuinely improved my life, and which ones simply became habits?"

That answer is often where extra money is hiding.

Pattern 2: The Decision You Keep Postponing

Money loves a plan. Without one, it finds its own destination.

The bill arrives and you pay it.

Something breaks and you deal with it.

The account gets low and spending slows down.

Then next month the same thing happens again. That cycle continues because there was never a plan.

I've read the books, studied the research, and talked to people who are great with money.

Almost all of them do some version of the same thing: They simply decide where their paycheck goes before it arrives.

Because every dollar already has a job. When you don't make those decisions ahead of time, your money gets assigned by whatever feels urgent in the moment.

First-time budgeters who write down their numbers find an average of $332 extra in their budget they did not know they had, according to Every Dollar app data. 

Before your next paycheck arrives, write down four numbers:

• Bills - cover what you need. 

• Savings - protect you from emergencies. 

• Investing - grows your future wealth. 

• Spending - everything you get to enjoy guilt-free. 

Then decide roughly how much will go into each one. It doesn't need to be perfect. 

The goal is simply to tell your money where to go before it decides for itself.

Every time I get paid, I follow the same simple system to make sure my money is going toward my goals instead of disappearing without me noticing.

If you want to see exactly how I do it step-by-step, watch my Payday Routine video here!

Pattern 3: The System You Never Built

Willpower sounds great. Until life happens.

A stressful day. A busy week. An unexpected expense.

That is why systems beat discipline almost every time.

Saving money at the end of the month sounds good in theory. Automating it on payday works in real life.

Set up an automatic transfer from checking to savings before you look at your balance and before you spend anything.

Start at 10% if you can. On a $5,000 take-home paycheck, that's $500 moved automatically. After two months, you've built $1,000 savings. After a year, you've saved $6,000 without having to make the same decision over and over again. 

That is the real power of automation. It turns good intentions into a system.

While that money waits, make sure it's actually earning. 

I keep mine in Chime. It has no monthly fees, no overdraft fees, and currently offers 3.75% APY about 9x the national average. It also includes perks like 5% cash back on categories I choose and travel benefits like Priority Pass.

Your savings should be working while they wait.

→ Open a Chime account then set up one automatic transfer this week. Even $25. Even $50.

The amount matters less than building the system. Because once the system is running, progress becomes automatic.

Your money has been running on a default setting for a long time.

The good news: defaults can be changed.

See where it actually goes. Plan before it arrives. Automate before you can touch it.

Three patterns. That is the whole cycle break.

Which of these three feels most familiar right now? Hit reply. I read every one.

💬Quote of the Week

📉 Market Recap

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

👉 U.S. and Iran move closer to a peace deal

The two countries have agreed in principle to reopen the Strait of Hormuz and limit Iran's nuclear program. A final deal has not been signed and could still take days to confirm. 

Wallet Impact: Lower oil prices could follow, meaning cheaper gas, groceries, and shipping costs down the line. Watch this one. 

👉 Micron surges 14% as UBS triples its price target

UBS raised Micron's target price from $535 to $1,625 citing AI-driven demand and long-term supply deals. The chipmaker is now closing in on a $1 trillion market value. 

Wallet Impact: The companies building the infrastructure behind AI are still growing fast. Broad index funds like VTI and VOO already give you exposure to this without having to pick individual stocks. 

👉 Anthropic surpasses OpenAI in revenue as Claude adoption explodes

Anthropic's annualized revenue jumped from $9 billion to $30 billion in just four months, now surpassing OpenAI's $25 billion. 

Wallet Impact: AI is no longer hype, it is infrastructure. Anthropic just proved it. Revenue tripling in four months is not a trend. It is a signal of where the economy is heading. 

👉 Robinhood lets AI agents trade stocks and spend money on your behalf

Robinhood launched two new products that allow AI to execute trades and make credit card purchases automatically for users. You set the limits and the AI acts within them. 

Wallet Impact: This is exciting technology but read the fine print. You are still responsible for everything it does. If you use this, treat it like handing your car keys to someone you just met. Start with a small amount you are okay losing completely. 

👀 In Case You Missed It

The stock market could drop 19% this year. Here's what I'm buying and why.

 🌱More ways I can help build your wealth

See y’all next week 🫡

Angelo Castillo

Disclaimer: The content of this newsletter is for informational purposes only and should not be construed as investment, legal, or tax advice. The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of any business, employer, or other entity. Investing involves risks, including the potential loss of principal. Past performance does not guarantee future results. Readers are advised to conduct their own research and consult with qualified professionals before making any investment, legal, or financial decisions. The information provided is believed to be accurate but cannot be guaranteed. The author and publisher disclaim any liability for actions taken based on the content of this newsletter. This newsletter is not an offer to buy or sell any security. By subscribing or continuing to read this newsletter, you acknowledge and accept these terms and conditions.

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