DeepSummary
In this episode of the Rich Habits podcast, Robert Croak and Austin Hankwitz discuss strategies for people who are struggling financially and living paycheck to paycheck. They provide tips on how to find an extra $2,000 to $3,000 per year by optimizing expenses such as switching to a cheaper wireless phone plan, canceling unnecessary subscriptions, and shopping around for better insurance rates.
The hosts emphasize the importance of taking action, even with small steps, to start investing and building wealth. They encourage listeners to open a Roth IRA and invest in index funds like VTI, VOO, and QQQ, even if they can only contribute a small amount each month.
Robert and Austin also touch on the potential of cryptocurrencies like Ethereum and the importance of diversification, especially for younger investors with a longer investment horizon. They stress the significance of compounding returns and reinvesting dividends over time.
Key Episodes Takeaways
- Look for ways to optimize expenses and plug 'leaks' in your monthly budget, such as switching to cheaper wireless phone plans, canceling unnecessary subscriptions, and shopping around for better insurance rates.
- Even if you have a limited budget, start investing small amounts, such as $100 per month, in index funds and cryptocurrencies to take advantage of compounding returns and long-term growth.
- Open a Roth IRA and invest in index funds like VTI, VOO, and QQQ to build tax-advantaged wealth over time.
- Diversify your investments, especially as a younger investor, by allocating a portion of your portfolio to potentially high-growth assets like cryptocurrencies.
- Take action, even with small steps, to start your investment journey and build wealth, regardless of your current financial situation.
- Don't be discouraged by the belief that you need a large sum of money to start investing; small contributions can lead to meaningful wealth over time.
- Regularly review your expenses, subscriptions, and service providers to identify and eliminate unnecessary costs, freeing up money to invest.
- Stay motivated and focused on your long-term financial goals, even when facing challenges or temptations to spend money on short-term indulgences.
Top Episodes Quotes
- “Yes. This episode is very, very cool and meaningful for me as well, because Elizabeth and I just had a conversation, I think it was a week or two ago, and she was going through TikTok one evening talking about how we need to discuss the topic of the everyday person and their situation because of inflation, because of groceries and gas prices and all of this, that there are so many people out there that feel they can't get started on their journey to investing because they're living paycheck to paycheck and scraping by.“ by Robert Croak
- “And this really speaks to, yes, it'd be great if you could just go out and make more money and have that extra money to invest. But in the instances where you can't, then you have to look from within and find those little leaks in your monthly expenses to be able to plug those leaks, like you did with your father and getting the less expensive wireless plan.“ by Robert Croak
- “Don't listen to the fake gurus. You can start with as little as $100 a month, and I promise you, down the road, it will become meaningful and life changing for your journey.“ by Robert Croak
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Episode Information
Rich Habits Podcast
Austin Hankwitz and Robert Croak
6/24/24
In this episode of the Rich Habits Podcast, Robert Croak and Austin Hankwitz flip things around. Instead of talking about setting your family up for generations or optimizing your tax situation, they instead wanted to cater an entire episode around the person who's living paycheck to paycheck and trying to dig themselves out of a hole.
Personal finance is personal. We all have a unique relationship with money. Some people have it in abundance, others work countless hour every week to earn it.
Regardless of your situation, we hope this episode can help you find an extra $2,000 / year to either begin paying down that high-interest credit card debt or kick-off your investing journey.
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