Saving Money Isn’t About Deprivation: The Strategy Most People Get Wrong
By Derek — Money isn't complicated. People just make it complicated. ·
Look, if I have to hear one more person tell me that their ‘financial plan’ involves cutting out their morning latte, I’m going to lose it.
We’re in September 2026. The world is moving faster than a Red Bull pit crew, and yet, I’m still seeing people treat their personal finances like it’s 1995. They think saving money is about suffering. They think it’s about clipping coupons, staying home on Friday nights, and white-knuckling their way through life until they hit some arbitrary ‘retirement age.’
Newsflash: That’s not a strategy. That’s a prison sentence. And it’s exactly why most people fail to build actual wealth.
Money isn’t complicated. People just make it complicated because they refuse to look at the math and they refuse to look at their own psychology. Let’s strip away the noise and talk about how you actually stack cash without losing your mind.
The 'Latte' Lie
Let’s start here: stop obsessing over the $7 coffee. If your budget is so fragile that a cappuccino breaks it, you don’t have a spending problem—you have an income problem.
Most financial advice is designed to make you feel guilty. It focuses on the pennies while you’re bleeding dollars on the things that actually matter: your housing, your car, and your interest rates. When I was at Goldman, I saw people making seven figures who were broke because they were leveraged to the hilt on depreciating assets. They looked rich, but they had zero liquidity.
Saving isn’t about being cheap. It’s about being intentional. It’s about knowing the difference between an asset and a liability and choosing where your capital works hardest for you.
The 50/30/20 Rule is for Rookies
You’ve heard the 50/30/20 rule: 50% for needs, 30% for wants, 20% for savings. It’s a decent starting point if you’re fresh out of college, but if you’re trying to scale your life or your business, it’s a ceiling, not a floor.
If you want to move the needle, you have to invert the hierarchy. I tell my clients: Pay yourself first, and I don't mean a little bit. I mean automate it so you never even see the money in your checking account. If you wait until the end of the month to see what’s left over, you’re going to find that you spent it all on ‘wants.’
Move that money to your brokerage or high-yield vehicle the second your paycheck hits. If you learn to live on 70% of your income, you’re not ‘sacrificing.’ You’re buying your freedom. You’re buying the ability to take risks later. That’s the real ROI.
Stop Saving for 'Just in Case'
This is a big one. People hoard cash in a savings account earning 0.01% because they’re ‘saving for an emergency.’ While having a liquid emergency fund is non-negotiable—I recommend six months of runway—stashing everything in a low-interest account is a losing battle against inflation.
Saving money is only the first step. The second step is deploying it.
Money sitting still is dying. You need to be thinking about your money in terms of velocity. How fast can that dollar turn into a seed that grows into something else? Whether that’s index funds, real estate, or investing in your own business (the highest-yield asset you have), stop treating your bank account like a graveyard.
Audit Your Lifestyle Creep
Here’s where people get tripped up. You get a raise, and suddenly you need a nicer apartment. You get a bigger client, and suddenly you’re leasing a German luxury car.
I’m not saying you shouldn’t enjoy the fruits of your labor—I love a good suit and I definitely don’t fly coach—but keep your lifestyle flat for as long as possible while your income scales. This is the ‘secret’ to wealth that nobody wants to hear because it’s boring. Keep your overhead low, keep your burn rate predictable, and watch your net worth compound.
The Mindset Shift
Saving money is a tool for optionality. When you have cash in the bank, you don't have to take that bad client. You don't have to stay in that toxic job. You don't have to panic when the market takes a dip.
When I’m watching the F1 race on Sunday, I’m not just watching the drivers. I’m watching the strategy. I’m watching how they manage their tires, how they decide when to pit, and how they play the long game. That’s exactly how you should be looking at your bank account. It’s not about who’s fastest off the line; it’s about who has the best strategy to cross the finish line with the most fuel left in the tank.
Stop making it complicated. Audit your overhead, automate your savings, and start deploying your capital with purpose.
Look, I know this stuff can feel heavy when you’re staring at it alone. If you’re ready to stop guessing and start building a real financial strategy, let’s talk. Drop me a line or hit me up on the socials—let’s get your head on straight and your money moving.
Catch you on the next one.