In this paper, the induced thermomagnetic convection of a dilute ferrofluid in a non-uniform magnetic field induced around a current-carrying wire was theoretically studied, experimentally tested and numerically validated. The temperature rise of the hot wire has been measured for different currents applied to the wire. The velocity and temperature profiles have been numerically studied and compared for the cases of free convection only, and free convection accompanied by thermomagnetic convection. Results revealed that at low currents the effect of thermomagnetic convection is insignificant, while at higher currents it becomes dominant and higher heat transfer coefficients with enhanced cooling effect are achievable. This phenomenon in larger scale can minimize the need for pumping power in cooling applications.