DeepSummary
In this episode of the Rich Habits podcast, the hosts Austin Hankwitz and Robert Croak discuss the three main mistakes that cause even high-earners to live paycheck to paycheck. They emphasize the importance of having an 'honest budget' that accounts for all expenses, including often overlooked ones like lump sum items, medicine, cosmetics, pet care, and taxes.
The second mistake they highlight is relying on credit cards for monthly cash flow, which can lead to a perpetual cycle of debt. They advise listeners to calculate their monthly income and expenses, and find ways to earn the difference rather than accumulating credit card debt.
The third mistake discussed is putting too much money into depreciating assets like expensive cars, luxury items, and other big-ticket purchases that lose value over time. Instead, they recommend investing that money into assets that increase net worth, such as retirement accounts or real estate.
Key Episodes Takeaways
- Create an 'honest budget' that accounts for all expenses, including often overlooked ones like lump sum items, medicine, cosmetics, pet care, and taxes.
- Avoid relying on credit cards for monthly cash flow, and find ways to earn the difference between income and expenses.
- Limit spending on depreciating assets like expensive cars and luxury items, and instead invest in assets that increase net worth.
- Build an emergency fund before aggressively paying down low-interest debt like student loans.
- Automate budgeting and tracking expenses using apps like Copilot to maintain accountability.
- Consider house hacking or getting roommates to offset housing costs and free up money for investing.
- Focus on building wealth rather than portraying an image of wealth through luxury purchases.
- Continually re-evaluate and adjust your financial habits to align with your long-term goals of financial freedom.
Top Episodes Quotes
- “We're going to coin that term honest budget. We're going to drill it into everyone's head because I think it's so important moving forward for everyone to understand where they really are.“ by Robert Croak
- “Don't drive your retirement, dude. You're driving your retirement. That's what you're doing.“ by Austin Hankwitz
- “It's better to be rich than look rich.“ by Robert Croak
- “Stick to your honest budget, use that copilot app we talked about, or do anything else you can to ensure you're not going further into credit card debt. This is mission critical to get you on the right track for financial freedom.“ by Robert Croak
Entities
Product
Company
Person
Episode Information
Rich Habits Podcast
Austin Hankwitz and Robert Croak
2/12/24
In this episode of the Rich Habits podcast, Robert Croak and Austin Hankwitz share the three mistakes they see high-earners commonly make that cause them to live paycheck-to-paycheck.
---
Watch the covered call webinar replay, click here!
---
Check out our Credit Card Benefit Matrix, click here!
Opt-in and share your email, click here!
Learn more about our 4-module video course!
Download our FREE Budget Template, click here!
To learn more about Robert: https://stan.store/RobertJCroak
To learn more about Austin: https://stan.store/austinhankwitz
Contact: richhabitspodcast@gmail.com