How to Start Stacking Money

The first thing you need to understand about stacking money is that it's not about how much you make, but how much you keep. Wealth-building isn't reserved for those with six-figure salaries; it's for anyone with the discipline to save and invest consistently. In fact, those who stack money effectively are often the ones who know how to leverage even the smallest amounts.

Let’s start by laying out a few key steps.

1. Automation is your friend. The best way to ensure you save is to set up automatic deductions from your paycheck or bank account into a savings or investment account. This way, you never even see the money—out of sight, out of mind. Consider contributing to a high-yield savings account or, better yet, an index fund that provides steady returns over time.

2. Track your spending. If you’re not sure where your money is going, you’re not alone. Many people underestimate their expenses, and that’s a trap. Use budgeting apps or even a simple spreadsheet to monitor your spending. Once you know where your money is leaking, you can plug those holes and divert funds to savings or investments.

3. Invest early, invest often. One of the most common misconceptions is that you need a large sum of money to start investing. You don’t. Thanks to micro-investing platforms and apps, you can start with as little as $5. The key is to start early and consistently. Over time, even small investments can grow into substantial wealth through the power of compound interest.

4. Eliminate high-interest debt. It’s hard to stack money when you’re paying 15% or more in credit card interest. Focus on paying off high-interest debt as fast as possible. Once you're debt-free, you can redirect that money into savings or investments, accelerating your path to financial independence.

5. Side hustles and additional income streams. Don’t rely solely on your day job to build wealth. Many millionaires have multiple streams of income, whether it's through real estate, online businesses, or freelance gigs. The digital age has made it easier than ever to start a side hustle with minimal upfront investment. Look for opportunities that align with your skills and interests.

6. Live below your means. The biggest secret to stacking money is simple but often overlooked: spend less than you earn. This might mean cutting back on luxuries, moving to a more affordable location, or delaying large purchases. Remember, the goal is not to live like a monk but to balance enjoying life now with securing your financial future.

Now, let’s dive deeper into each of these steps to break down how you can apply them in your life.

Automation is Key

Imagine your savings growing without you lifting a finger. That’s the power of automation. By setting up automatic transfers from your checking account to a savings or investment account, you ensure that you’re paying yourself first. It’s the simplest and most effective way to consistently stack money.

Think of it as a subscription to your future wealth. Just like you might subscribe to Netflix or Spotify, make sure you subscribe to your financial growth. Set it and forget it. But here’s where it gets even better: If you automate your investments, you're not just saving; you're growing your wealth.

Tracking Expenses: A Wake-Up Call

Most people think they’re good at managing their money until they track their spending for a month. That’s when reality hits. It’s easy to overlook those daily coffee runs, subscriptions you don’t use, or spontaneous shopping sprees.

Once you start tracking, you’ll be shocked at how much you can save by cutting out unnecessary expenses. Budgeting doesn’t mean deprivation. It’s about being intentional with your money and ensuring every dollar has a purpose—whether that’s saving, investing, or spending on something that truly matters to you.

Investing: Compound Interest is Your Best Friend

If there’s one thing that makes stacking money incredibly powerful, it’s compound interest. The earlier you start investing, the longer your money has to grow. Even if you start with small amounts, time and compound growth can turn those modest investments into significant wealth.

For instance, if you invest just $200 a month at an average return of 7%, in 30 years, you’d have over $228,000. That’s the magic of letting your money work for you.

Don’t worry if you’re not an investment expert. Start simple with index funds or ETFs, which are diversified and low-cost. Apps like Acorns or Robinhood make it easier than ever to get started without a financial advisor.

Debt: The Ultimate Wealth Killer

Debt is the opposite of stacking money. Every dollar you pay in interest is a dollar you could be investing. So, the sooner you get rid of high-interest debt, the sooner you can start stacking cash. Create a plan to aggressively pay down any debt that’s eating into your income, starting with credit cards and personal loans.

Once your debt is under control, you’ll be amazed at how much extra money you have to save or invest.

Side Hustles: Your Secret Weapon

We live in the age of the side hustle, and it’s one of the best ways to accelerate your wealth-building. Whether it’s freelancing, running a small online store, or renting out an extra room on Airbnb, there are endless ways to supplement your income.

More income streams mean more opportunities to save and invest.

The Mindset of Living Below Your Means

One of the hardest but most important aspects of stacking money is learning to live below your means. It’s not about being cheap; it’s about being smart. Do you really need the latest phone, or can you wait a year or two? Do you need a luxury car, or will a reliable used one suffice? These small choices can make a huge difference in your ability to save and invest.

Ultimately, stacking money is about making smart financial choices consistently over time. You don’t need to win the lottery or have a massive salary to build wealth. All you need is discipline, a plan, and the patience to see it through.

Now, the ball is in your court. Are you ready to start stacking?