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 psychological shift after $100K

• The enemies quietly draining your money

• Fed chair, layoffs and more…

Read time: 3 min 10 seconds

💰 Wealth Tip of the Week

I still remember the day I hit $100,000. 

Honestly, it felt weird to see six digits in my account.

Growing up in a family that wasn’t rich, reaching six figures felt like crossing some

invisible threshold I wasn't sure I'd ever reach. 

But looking back, that milestone changed everything about how I approach financial goals.

What I didn't realize then was how big that $100,000 was. 

Not only did it set me on my path to where I am now ($600k+ invested!),

but it also broke the psychological barrier I had with my money. 

I want you to think of building wealth like a video game.

To win, you need to understand the map, recognize the enemies, and choose the right path. 

Most people fail because they try to rush or get stuck playing survival mode the whole time.

So let’s break down the game, the enemies, and the three levels you need to beat to accelerate your journey to $100K.

1. Why Most People Get Stuck

Your checking account isn’t where wealth is built.

It’s where money passes through.

Most people think their financial life is predetermined, 

or that there are only two paths to building wealth. 

The first is the gambling, high-risk, high-reward mentality. 

People on this path chase big breaks. Think gambling and betting, day trading and meme stocks, lottery tickets, or get-rich-quick schemes. 

But the reality is that over 80% of day traders lose money, and the

odds of winning the lottery are 1 in 292 million. 

I myself lost thousands trying to day trade and can confirm this path is a dead end.

The second is the classic "poor rich" scenario where people making great money end 

up living paycheck to paycheck due to poor spending habits.

Here’s how it goes: When income increases, spending increases right along with it (AKA lifestyle inflation). 

This leaves nothing left over to save or invest. 

This can happen even for doctors, lawyers, or engineers making $200K+.

So what’s the right move?

There’s one truly sustainable way to build your wealth.

As NYU Professor Scott Galloway says, "The good news is I know how to make you rich. 

The bad news is you're not going to like it because it's slow." 

This is the boring, consistent route that works. It's not flashy, but it is the surest way to build wealth.

It will require patience, but the results will be worth it in the long run.

2. The Enemies: The Forces Working Against You

On this financial journey, you face three big boss enemies along the way:

1. Inflation: Your dollar loses value while you sleep.

$10,000 sitting in checking at 0% = $7,441 in buying power after 10 years.

You didn't spend it. Time just stole $2,559.

2. High-Interest Debt: Credit cards charge 24% on average.

A $5,000 balance takes 17 years to pay off with minimums.

Any debt over 6-8% is actively making banks rich off you.

3. Lifestyle Inflation: You get a raise. You upgrade everything.

Income up. Spending up. The gap never closes.

Corporations spend billions on psychology to trigger this response.

It can be tough to figure out how to combat these forces, 

but let’s do some quick math to calculate your personal “enemy damage:”

• Inflation loss: How much do you have in low/no-interest accounts?
  $__________ × 3% = $__________ lost per year

• Debt damage: What are you paying in interest monthly?
  $__________ per month × 12 = $__________ per year

• Lifestyle inflation: Compare your expenses from 2 years ago to now.
  Income increase: $__________
  Expense increase: $__________
  (Ideally, your income increase is larger than your expense increase)

Total damage per year: $__________

Once you’ve added up these totals, you have an idea of your enemy damage.

Now it’s time to arm yourself and start playing offense.

3. The Three Levels to $100K

Level 1: Defeat High-Interest Debt (The Immediate Threat)

This is your most immediate enemy because it compounds against you 24/7. 

There are two ways to approach your debt: from largest to smallest (The Avalanche Method) or from smallest to largest (The Snowball Method)​​

Whichever route you choose, take the small steps to eventually eliminate your high-interest debt. 

Once that’s complete, you move on to the next until you tackle the final boss.

Level 2: Play Defense (Strengthen Your Base)

Now it’s time to build your foundation.

• Build Your Emergency Fund: Save 3–6 months of expenses in a High-Yield Savings Account (HYSA).

This gives you peace of mind and protection against life's emergencies.

I keep my emergency fund in Chime's HYSA with ~3.00% APY, which actually holds ground against inflation instead of slowly crumbling.

The defense upgrade:

• $15,000 emergency fund in regular savings = $58/year (loses to inflation)

• $15,000 in Chime = $450/year (roughly inflation-neutral)

Plus, Chime's offering up to a $350 bonus with qualifying direct deposits right now.

That's basically free HP just for choosing better armor.

👉 Click here to upgrade your emergency fund defense with Chime!

• Track Your Spending: You can't manage or grow what you don't measure.

Diagnose yourself financially to see where your money is actually going

because the average American wastes over $2,000 a year on unused subscriptions alone.

• Automate Your Savings: Set up automatic transfers from your checking account to your

HYSA to pay yourself first and remove willpower from the equation.

This is a huge step to keeping discipline in your financial journey.

Level 3: Play Offense (Accelerate Your Wealth)

This is where you gain the leverage to hit $100K much faster.

One way to bump up your income is to job hop.

People who switch jobs every two to three years often earn 10–20% more, 

and you should negotiate your salary every time.

If you’d like to stick around at your current job, start a side hustle instead

(like DoorDash or freelance work) to earn an extra $100 to $500 a month

to fund your investment accounts.

Once you’ve boosted your income, you need to put your hard-earned

money to work for you in the stock market. 

Start simple with an S&P 500 index fund (like VOO) and automate your investment.

If you've never invested before, you probably have a lot of questions.

I made a step-by-step walkthrough that answers every question you're

actually wondering about. 👉Check it out here!

Over time, compound interest will turn consistent small investments into

significant wealth without you having to work 80 hours a week.

These strategies work regardless of your age or income.

But they only work if you start now. 

Every month you wait is another month that compound interest doesn't hit for you.

Time is the only investing advantage you can't buy back later.

💬Quote of the Week

📉 Market Recap

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

• Trump is close to naming a new Fed chair, markets watch interest rates

• Homebuyers cancel deals at the fastest pace in years as rates stay high

• Amazon cuts 16,000 corporate jobs as AI replaces some roles

• Meta earnings jump, fueled by ads and heavy AI investment

👀 In Case You Missed It

If it feels like everyone else is ahead financially, this video explains why that illusion exists and why you’re not behind.

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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$350 Intro Offer: Terms apply. Limited time only. Must open a new account and complete qualifying activities to earn up to $350. See chime.com/policies/newmemberofferv3 for details.

3.00% Chime+ APY is only available to members who maintain eligibility for Chime+ status, otherwise the 0.75% APY will apply. APY means Annual Percentage Yield. No minimum balance required. See Chime.com for details. Chime Checking Account required to be eligible for a Savings Account.