Money Matters: If you’re reading this, there’s a good chance you’re doing… fine.
Not “private jet fine,” but “the bills are paid, the fridge has food, and nobody’s panicking” fine.

Which is exactly why this issue exists.

Because in a K-shaped economy, fine is not a stable position - it’s a temporary one.

And a surprising number of people at the top of the K are quietly discovering that while they’re earning more than ever, they’re also one or two bad decisions away from feeling like everyone else.

Today’s issue is for people who are technically winning - and would like to keep it that way.

Survey says: 

• The top 20% of households hold ~70% of all U.S. wealth
  Translation: This economy rewards ownership far more than income.

• Households earning $100K–$150K saw spending rise faster than income since 2020
  Translation: Many high earners are running harder just to stay in place.

• High-income households now spend a larger share of income on fixed costs than in prior decades
  Translation: Bigger paychecks often come with less flexibility.

• Over 40% of households earning $100K+ report living paycheck to paycheck
  Translation: High income doesn’t guarantee breathing room anymore.

• Credit card balances among higher-income households are rising faster than inflation
  Translation: Even “successful” households are quietly leaning on credit.

Inside Today’s Issue:

😎 Our Favorite Resources
👍 Life on the Top Arm of the K
👌 Action Plan: Staying on Top
🤷‍♀️ What’s up for next week

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Cool Links

Our favorite resources

💵Budgeting

FDIC BankFind - (High-Yield Savings Finder)
Find legitimate, FDIC-insured banks paying real interest — not fintech roulette.

TreasuryDirect - (I Bonds & T-Bills)
Park cash safely with yields that actually compete with inflation.

Policygenius - Re-Shop Insurance (Fast Win)
One quote can free up $100–$300/month without changing your lifestyle.

👀ICYMI

Missed last week? - You’re Not Broke — You’re on the Wrong Side of the ‘K’ breaks down why the economy feels broken for so many households.

📜Quote

Wealth is not about having a lot of money. It’s about having a lot of options.
- Chris Rock

Today’s Main Event

Life on the Top Arm of the K 

Part 1: What It Means to Be on the “Good” Side

Being on the top of the K doesn’t mean you’re rich.

It means:

• Your income still works

• Your job still exists

• Your raises mostly keep up

• Inflation is annoying, not catastrophic

You can absorb shocks - for now.

But here’s the twist: The top arm of the K rewards structure, not effort. People who convert income into assets, flexibility, and optionality keep rising.

People who just earn well… stall.

Part 2: The Quiet Risks Nobody Warns You About

This is where things get sneaky.

• Lifestyle creep hardens into fixed costs

• Cash piles up with no assignment

• Credit becomes convenience, not strategy

• Time becomes scarcer than money

Nothing breaks. Nothing explodes.

You just stop building advantage.

Which is how people slowly slide down the K while still “doing fine.”

Part 3: The HENRY Playbook (What to Do Instead)

This isn’t about cutting lattes or living like a monk.

It’s about optimization, not sacrifice.

• Every dollar should have a job

• Every fixed cost should justify its existence

• Every convenience should be intentional

• Every income stream should move you closer to ownership

The goal is not more hustle.

The goal is less friction and more leverage.

The Big Shift

People on the top of the K don’t win by budgeting harder.

They win by:

• Automating smart behavior

• Reducing silent inefficiencies

• Turning income into optionality

• Making decisions before pressure forces them to

In this economy, waiting is a strategy - it’s just a bad one.

The Action Plan: How to Stay on the Right Side of the K

This economy doesn’t reward awareness. It rewards execution.

Here’s what to actually do - no theory, no motivational speeches.

1. Assign Every Dollar a Job (This Week)

Goal: Turn income into leverage, not drift.

• Keep 1–2 months of expenses in checking

• Keep 3–6 months in high-yield cash

• Anything beyond that gets assigned on purpose:

  • Investing

  • Opportunity fund

  • Tax buffer

  • Debt reduction (if strategic)

If cash is sitting around “just in case,” it’s leaking momentum.

2. Reduce One Fixed Cost Every Quarter

Goal: Increase flexibility without downgrading lifestyle.

Pick one:

• Insurance (shop it annually — loyalty is expensive)

• Phone plan

• Internet tier

• Subscription bundle

Target: $150–$300/month reclaimed
Do this once per quarter. Compound the wins.

3. Turn Credit Into a Tool, Not a Convenience

Goal: Stop paying interest by accident.

• Make payments before statement close, not just due dates

• Kill balances with the highest APR first

• Move convenience spending to lower-APR or rewards-optimized cards

• If using 0% offers, set a payoff alarm immediately

High earners don’t avoid credit — they control the timing.

4. Automate the “Smart Behavior”

Goal: Remove willpower from the equation.

Automate:

• Investing right after paycheck hits

• Extra principal payments (if applicable)

• Savings before discretionary spending

If a good decision requires remembering to do it, it’s optional.
Optional things don’t survive busy lives.

5. Convert Income Into Optionality

Goal: Stop relying solely on wages.

Ask one question this month: Can any part of my income turn into ownership, equity, or scale?

Examples:

• Equity-linked compensation

• Consulting with pricing power

• Ownership stakes (even small ones)

• Tax-advantaged business income

You don’t need more hustle.

You need more options.

The Rule Going Forward

• Optimize before pressure forces your hand

• Reduce friction before it becomes stress

• Build optionality before you need it

That’s how people stay on the top arm of the K - quietly, deliberately, and ahead of the curve.

Until Next Time

What’s Up Next Week

If you’re on the top side of the K, this is not the victory lap - this is the part of the movie where the background music gets suspicious.

This economy rewards people who make boring smart moves early, instead of exciting desperate moves later that involve spreadsheets, stress, and whispering “how did this happen” into a cup of coffee.

You don’t need more hustle. You need fewer surprises. Because “fine” has a nasty habit of disappearing the second you stop watching it.

Next week, we are kicking off the new year by tackling the A.I. elephant in the room and how you can leverage it for some big wins in 2026

Jim & the MoneyHoot Team 🦉

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DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.