DeepSummary
In this episode, Robert Croak and Austin Hankwitz discuss the three phases of building financial freedom. Phase 1 involves getting out of debt and achieving a net worth of zero by earning as much money as possible through jobs and side hustles. This lays the foundation for building wealth.
Phase 2 is about saving and investing the first $100,000, which allows money to start working for you through compound interest. This can take 5-10 years but is a crucial step in securing financial freedom.
Phase 3 is accelerating income by diversifying investments into areas like small businesses, cryptocurrencies, real estate, and selling covered calls. This allows for multiple income streams and the potential to reach millionaire status.
Key Episodes Takeaways
- There are three key phases to building financial freedom: getting out of debt, saving and investing $100k, and diversifying income streams.
- The first $100k invested is the most difficult but critical milestone for allowing compound interest to work.
- Diversifying income streams through alternative investments like real estate, businesses and selling options is important in Phase 3.
- Building wealth is a long-term journey that requires discipline and patience, even for highly successful investors.
- Starting the wealth-building process early through aggressive saving and side hustles provides a stronger foundation.
- Having multiple income streams is a common trait of millionaires.
- Prioritizing goals and sticking to a plan is essential for progressing through each phase successfully.
- Reaching financial freedom allows for more abundance and forecasting rather than strict budgeting.
Top Episodes Quotes
- “By accelerating your income, we mean diversification, allowing you to make even more money while you sleep.“ by Robert Croak
- “Trust me, it's well worth it when you get to that point and you're so proud and you can look at that account, see that 100K in there growing every single day.“ by Robert Croak
- “It's just so important to understand this beginning phase, because a lot of times when we look at people that are in their 20s, just graduated college, you grinded through it. Maybe you didn't go to college and you've been in the workforce, but you're not focusing on the most important thing is putting in the work now to set yourself up later.“ by Robert Croak
- “Warren Buffett, one of the best investors of all time, is worth over $100 billion, but he didn't make his first billion until he was, I think, 58 years old. And so I want everyone listening right now to realize this is a lifelong journey.“ by Austin Hankwitz
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Episode Information
Rich Habits Podcast
Austin Hankwitz and Robert Croak
3/18/24
In this episode of the Rich Habits Podcast, Robert Croak and Austin Hankwitz dive deep into the three phases of building financial freedom.
Everyone has to start somewhere. No matter where you are in your wealth building journey, understanding the priorities in front of you is the most important realization you can have.
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To learn more about Robert: https://stan.store/RobertJCroak
To learn more about Austin: https://stan.store/austinhankwitz
Contact: richhabitspodcast@gmail.com