Stop Saving Money Like You're Broke: A Better Way to Build Wealth
By Derek — Money isn't complicated. People just make it complicated. ·
The 'Saving' Trap
Let’s be real for a second. We’ve been fed a lie since we were kids. We’re told that if we just cut out the daily latte, skip the avocado toast, and pinch every single penny until Lincoln screams, we’ll eventually be rich. It’s the "frugality as a strategy" myth.
I spent five years at Goldman watching how people actually move money, and let me tell you: nobody got to where they wanted to be by nickel-and-diming their way to a million. Money isn’t complicated. People just make it complicated by focusing on the wrong side of the equation. If you’re spending all your mental bandwidth trying to save five bucks on a subscription you don’t even use, you’re missing the bigger game.
Saving money shouldn’t feel like a punishment. It should feel like building an engine.
Stop Tracking Pennies, Start Tracking Velocity
Most people track their expenses like they’re trying to find a leak in a sinking ship. That’s exhausting. If you have to track every single transaction to keep your head above water, you don’t have a budget problem—you have an income problem or a lifestyle creep problem.
Instead of counting lattes, focus on velocity. How fast is your money moving from your paycheck into an asset that actually grows?
When I’m coaching founders, I tell them the same thing I tell my individual clients: automation is your best friend. If you have to "decide" to save money every month, you’ve already lost. Human willpower is the most unreliable financial tool in existence. Set up a system where your savings hit your brokerage or high-yield account the second your deposit clears. Treat your savings like a tax you owe yourself. You don’t ask the IRS if you can pay them later; don’t ask yourself if you can afford to save this month. Just pay it.
The 'Fun Tax' is Mandatory
Here’s where people usually hate me, but stay with me. If you try to live like a monk to save money, you’re going to burn out. You’ll be "good" for three months, get annoyed, and then go on a spending bender that wipes out everything you saved.
I’m a firm believer in the 'Fun Tax.' Build a guilt-free spending category into your monthly plan. Whether it’s that expensive dinner, a weekend trip, or upgrading your gear, pay for it out of a dedicated account that you fund after your mandatory investments are taken care of.
I watch F1 religiously—Mclaren’s upgrades this season have been a masterclass in calculated risk, by the way—and I know that if the team only focused on maintenance and never invested in performance, they’d never hit the podium. Your life is the same. You need the maintenance (bills) and the savings (the baseline), but you also need the performance upgrades. Don’t cut the fun out of your life; just make sure the fun is a line item, not a lifestyle.
Liquidity vs. Wealth: Know the Difference
This is where most people get tripped up. They hoard cash in a checking account, thinking they are "saving." You aren’t saving; you’re losing. With inflation, that cash pile is slowly evaporating.
True saving is just the precursor to investing. You need an emergency fund—three to six months of expenses, period. That’s your peace of mind. Once that’s done, every single dollar you save after that needs to be deployed.
Think of your cash like the tires on an F1 car. You need the right compound for the track conditions. If you’re saving for a house in two years, that money needs to be in a high-yield vehicle, not a volatile stock. If you’re saving for retirement in twenty years, that money needs to be in the market. Stop treating all your savings the same. It’s lazy, and it’s costing you potential growth.
The Psychology of 'Enough'
At the end of the day, saving money is really just a conversation about what you value. I see people making six figures who feel broke because they’re trying to keep up with a version of success that doesn't actually make them happy.
Define what 'enough' looks like for you. Is it the freedom to quit a toxic job? Is it being able to take a month off to travel? When you tie your savings to a specific, tangible goal that matters to you—not your neighbor, not your parents, not your LinkedIn feed—it stops being a chore. It becomes a tool for autonomy.
Let’s Cut the Noise
Look, I know this sounds simple, but that’s because it is. We get so caught up in the "how" that we forget the "why." Strip away the noise, automate the boring stuff, invest in the things that actually move the needle, and enjoy your life while you’re doing it. You’re not a math equation; you’re a person.
If you’re still feeling like your money is just sitting there doing nothing, or if you’re tired of the "save every penny" advice that never seems to get you anywhere, let’s talk. Drop me a line, tell me what you’re trying to build, and let’s figure out a strategy that actually works for your life.
Catch you on the next one.