Is It a ‘Wealth Hack’ or a Debt Trap?
How Hustle Culture Hijacks Your Wallet with Empty Promises and Bad Math
Let’s face it – there is no shortage of absolute clownery being sold as financial wisdom these days. Between social media “wealth coaches”, crypto bros with ring lights, and the late night informercial promising luxury through loopholes, like credit card rewards, you’d think we were all just one life insurance policy or a Pay in 4 payment away from generational wealth.
Except... we’re not.
In reality, a lot of what’s being passed around as “wealth hacks” are just glorified debt traps, dressed in inspirational quotes and questionable spreadsheets. Some of it is laughably bad, like meme stocks, while other advice sounds just reasonable enough to convince well-meaning people trying to get ahead.
So, in the name of discernment and good stewardship, here’s a breakdown of some of the worst financial advice on the internet: the fake, the flashy and the financially unfaithful, filtered through biblical principles and common sense.
Crypto on Credit: When Risk Turns Reckless
Believe it or not, it may be tempting to invest now instead of focusing on debt paydown. When savvy turns into sabotage: the encouragement to charge a high-risk investment like crypto – on a credit card.
What they say: “Why pay off a 20% APR when the stock market averages 10% returns?”
Reality check: Math does not work like this. You’re virtually guaranteed to lose more on high interest debt than you might gain in the market. This is like trying to fill a leaking bucket by turning the faucet pressure up.
What to do instead: Start by plugging the holes. Proverbs 22:7 says, “The borrower is slave to the lender.” Meaning it becomes challenging to build wealth when you have a weight of expensive debt or high interest rates. Focus on paying these off first, then you will have more cash flow to put in investments without worrying about making the next payment. The mindset to have in investing is using dollars that you can afford to set aside for a long term, not money that’s already owed to someone else.
Start an Unnecessary LLC: The Tax Loophole That Isn’t
It’s all about the side hustles these days. And how to turn those into full time jobs instead of working for companies. If that sounds too good to be true, that’s because it is.
What they say: “Just start an LLC and write everything off – your car, your coffee, even your couch! It’s basically free money.”
Reality check: While social media presents business ownership as an ultimate tax cheat code, the reality is, abusing write-offs can turn into an IRS audit invitation with your name on it. While legitimate business expenses can be deducted, “legitimate” is the key word. Leasing a luxury car and calling it your office on wheels won’t fly if your biggest client is family outings or a brunch crew. Tax laws are specific, and the IRS is not known for its sense of humor.
Additionally, starting a business just for write-offs is putting the cart before the tax code. LLCs come with fees, paperwork, and responsibilities, meaning that the freedom you’re looking for can quickly turn into endless hours of admin, customer service and wondering where your profit went. If freedom doesn’t sound like 12-hour days selling drop shipping goods, endless hours looking through thrift shops for unique upsell finds on top of business administration work, then that business will be turning your 9 to 5 job into a 24/7 job.
What to do instead: Start with clarity, not cleverness. Proverbs 24:27 says, “Put your outdoor work in order and get your fields ready; after that, build your house.” Meaning we need to build the foundation before building the brand. Consider talking to a tax professional to make sure the business makes sense first, don’t start something just to try to dodge taxes. While side hustles can be great and provide some income, but don’t trust social media to give your tax advice.
401(k) loans: Robbing Future You to Fund Today’s Fantasy
This is not a new “wealth hack”, but it is being rebranded in a new way these days especially in the real estate investing circles.
What they say: “Don’t have enough to for your real estate empire? Just borrow from your 401(k). The earnings you’ll make from renters will pay it back.”
Reality Check: There’s a fourfold problem when it comes to 401(k) loans, regardless of the intent on what you use for it.
1. You’re borrowing from your future self, with interest. When you’re taking money out of the 401(k), you do have to pay it back- usually within 5 years. So essentially you’re taking money out of a tax advantaged account which could be compounding for decades to hope that the real estate investment will outpace that.
2. You lose potential market gains. If the market goes up while the money is missing, you miss the growth which will ultimately compound with time. Even if you calculate a market return of 8% and a real estate investment at 10%, you’re trading long-term tax advantaged growth for the hands-on, unpredictable grind of managing real estate.
3. You’re playing with tax fire. If you lose your job or quit while the loan is unpaid, it can become a full distribution. This means you owe income tax on the full amount that was pulled out. Additionally, there is a 10% penalty if you’re under 59½.
4. Real estate is not liquid or predictable. What if the roof collapses or you can’t find a tenant- or the tenant causes property damage? What if short-term rentals get banned in your area? The cash flow fantasy can quickly and easily turn into a money pit. Now not only do you owe that money back into the retirement account, you’re also left scrambling to cover an unexpected real estate cost.
What to do instead: Keep investing into your 401(k). It’s boring, but that’s what makes it beautiful. Proverbs 21:20 says “The wise store up choice food and olive oil, but fools gulp theirs down.” A 401(k) can be a tool to grow money wisely: It’s automatic, tax-advantaged, and slow growing. You don’t need to turn your retirement into a high-risk hustle. Let it grow in peace.
The Bottom Line: Don’t Hustle Your Way Into a Hole
The internet is full of shortcuts that sound smart until you actually run the numbers or try living them out. Hustle culture sells the dream of easy money, passive income, and financial “freedom” with a sprinkle of delusion and a whole lot of fine print.
But real financial wisdom is not built on viral hacks or credit card schemes. It’s built on patience, discipline, and discernment. Proverbs 13:11 says, “Dishonest money dwindles away, but whoever gathers money little by little makes it grow.” That “little by little” may not be flashy, but it is faithful. And in a world full of noise, staying grounded in biblical principles is what keeps your finances and sanity on solid ground.
You don’t need a side hustle to prove your worth. You don’t need to max out credit cards chasing quick wins. You just need a plan, some patience, and the wisdom to know that not all advice is created equal, especially when it’s coming from someone with a ring light and a referral link.
Bible Verses to Reflect On:
“The plans of the diligent lead surely to plenty, but everyone who is hasty comes only to poverty.” Proverbs 21:5
“Be still before the Lord and wait patiently for him; fret not yourself over the one who prospers in his way, over the man who carries out evil devices!” – Psalm 37:7
“And let us not be weary in doing good, for at the proper time we will reap a harvest we do not give up.” -Galatians 6:9