My Top Money Hacks: The Real Way to Build Wealth, No Fairy Dust Required

Hi Reader,

Welcome to The Money Series and if you are new here, thank you for signing up. Personal Finance can feel ambiguous and overwhelming, but I am here to help simplify the journey.

Today, I would like to share some money hacks that I have found useful over time with you. My all-time favorite money hacks will be to have been born into an ultra-rich family or to marry a Saudi prince. You know what I mean?

The kind of fairy tale that could instantly solve all my financial woes?

But now that I'm 100% sure neither of those options is on the table for me, let's talk about the money hacks that actually work in the real world.

These are the tried-and-true strategies I use to manage my finances and stay on top of my money. And guess what? They don’t involve a royal wedding or an inheritance from a long-lost uncle.

Automating Savings and Investments

Saving money can be tough, especially when we rely on willpower. Here’s the thing, we forget things easily and willpower isn’t reliable. But automation? That’s a game-changer. When you set up automatic transfers to your savings or investment accounts, you eliminate the need for constant decision-making. Saving becomes effortless, and consistency takes over. I always say this is one of the most important habits to develop if you want to build real wealth.

Before automating your savings, though, ensure you have an emergency fund in place—at least one month’s worth of living expenses. This is your financial safety that can cushion the effect of unplanned emergencies on your finances. You can also automate your regular monthly payments – rent, utilities, insurance, etc. – as long as they are fixed amounts and paid regularly.

Don’t Let Cash Sit Idle in Low-Interest Accounts

If the money is not earmarked for paying bills or emergency funds, I don’t like keeping them ‘idle’ in a non-interest-earning account. This is for two reasons; That money could be earning returns elsewhere—whether through interest or by investing in assets like stocks, bonds, or real estate (opportunity cost). Also, inflation reduces the purchasing power (the quantity of items I can get with the same amount over time). Hence, saving and investing my money are my weapons of fighting inflation and in some cases, devaluation. They aren’t just about setting money aside—they’re about making your money grow.

Improving my Financial Literacy

I’m a firm believer that the more you know, the better choices you can make. At every stage, I actively seek out opportunities to improve my financial knowledge—whether it's through books, courses, webinars, or just staying informed. Similarly, when introduced to new investments and asset classes for investments, I take my time to understand the investments, the risks involved, the expected returns, and the externalities that can impact the expected returns on the investment.

While not all of us will be financial planners, basic financial knowledge is essential. If you are considering a big investment, you should seek ‘unbiased’ professional advice – advice from a professional who is not the one trying to sell you something. This is important, especially in climes where financial advisors are paid commissions on the value of investments sold to clients.

Managing Windfalls Smartly

Windfalls—unexpected sums of money—are a blessing, but they can also be a curse if not handled wisely. It could be an inheritance, proceeds from selling a business, stock options, or even a lottery win. My rule of thumb? Slow down before you spend.

It’s easy to get excited and make impulsive decisions. A vacation, a new car, or upgrading your lifestyle might feel like the right move, but before you jump in, take a moment to think about it. Consider your options and potential uses for the money. In some cases, you may even want to get professional advice (financial or legal) before making any major moves. After all, the reason most lottery winners end up broke isn’t because they spent all their money—they spent it wrong.

Baby Steps! – No Get-Rich-Quick Schemes Here

I don’t expect to turn $1,000 into $1 million overnight. Building wealth is a marathon, not a sprint. It takes time, discipline, and patience. That’s why I steer clear of get-rich-quick schemes. Instead, I make sure my return expectations are realistic and in line with the risks I’m comfortable taking. Remember, wealth isn’t built by trying to hit home runs; it’s built by consistently making smart, calculated plays.

Your turn. Which of the hacks is your favorite? What other money hacks do you live by? Please share with me!

Act Now:

• List out the number of alternatives you can spend on if you get a windfall now.

Reflect on This:

• What did you do with the last windfall you got?

Till next week, I am rooting for you, money-ly!

Dee

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Disclaimer: This does not constitute financial advice. Please conduct your research or consult your financial advisor for important financial advice.