41: Making & Investing Your First $100K | Rich Habits Podcast

Intro

The “Rich Habits Podcast” is a highly popular business podcast hosted by Austin Hank Whittson and Robert Croak. In this episode titled “Making & Investing Your First $100K,” the hosts discuss strategies and tips for building wealth and achieving financial stability. They emphasize the importance of continuous learning, developing valuable skills, and taking action to reach financial goals.

Main Takeaways

Developing Valuable Skills for Making Money

• Continuous improvement is crucial for creating a valuable skill set for the future.
• Being a better writer, verbal communicator, and staying organized in daily life can enhance earning potential.

Steps to Make and Invest the First $100K

• Breaking down the goal of making $100K into achievable steps.
• Investing $450 per month in the stock market for 10 years can lead to $100,000 in a brokerage account.
• Utilizing credit card rewards and savings on monthly bills to contribute to the monthly investment.
• Earning extra money by selling unused assets through online platforms.
• Exploring side hustles like delivering groceries or earning affiliate commissions on TikTok shops.

Importance of Roth IRA and Index Fund Investing

• Starting a Roth Individual Retirement Account (IRA) early allows for tax-free enjoyment of future funds in retirement.
• Investing in a basket of index funds, such as VOO, QQQ, and VTI, can help achieve the $100K goal.
• The power of compound interest and the importance of staying consistent in investing.

Alternative Investment Options and Retirement Strategies

• The backdoor Roth IRA as an option for high-income earners who can’t contribute to a regular Roth IRA.
• Considerations for fixed index annuity plans and fixed annuity plans based on individual retirement journey, age, and risk tolerance.
• Exploring alternative investment options like online brokerage accounts and fractional share investing.

Overcoming Mindset Barriers and Taking Action

• Delving into mindset episodes to overcome analysis paralysis and take action towards financial goals.
• The importance of having the right mindset and believing that there are many ways to earn extra money.

Summary

Developing Valuable Skills for Making Money

The hosts stress the importance of continuous improvement and developing valuable skills to optimize earning potential. They highlight the significance of being a better writer, verbal communicator, and staying organized in daily life. By continuously learning and growing skill sets, individuals can enhance their ability to make money and achieve financial stability.

Steps to Make and Invest the First $100K

The hosts provide practical steps to make and invest the first $100,000. They emphasize breaking down the goal into achievable steps and investing $450 per month in the stock market for 10 years. They also suggest utilizing credit card rewards and savings on monthly bills to contribute to the monthly investment. Additionally, they discuss earning extra money through selling unused assets online and exploring side hustles like delivering groceries or earning affiliate commissions on TikTok shops.

Importance of Roth IRA and Index Fund Investing

The hosts highlight the significance of starting a Roth IRA early to enjoy tax-free funds in retirement. They recommend investing in a basket of index funds, such as VOO, QQQ, and VTI, as these funds have shown consistent growth. They emphasize the power of compound interest and the importance of staying consistent in investing to achieve the $100K goal, making investing and retirement easier.

Alternative Investment Options and Retirement Strategies

The hosts discuss alternative investment options and retirement strategies. They explain the concept of the backdoor Roth IRA, which allows high-income earners to contribute to a Roth IRA. They also provide insights into fixed index annuity plans and fixed annuity plans, highlighting their pros and cons based on individual retirement journeys, age, and risk tolerance. Additionally, they suggest exploring alternative investment options like online brokerage accounts and fractional share investing.

Overcoming Mindset Barriers and Taking Action

The hosts encourage listeners to overcome mindset barriers and take action towards their financial goals. They emphasize the importance of having the right mindset and believing that there are many ways to earn extra money. By delving into mindset episodes, individuals can overcome analysis paralysis and take steps towards achieving financial stability.

Conclusion

In this episode of the “Rich Habits Podcast,” the hosts provide valuable insights and strategies for making and investing the first $100,000. They emphasize the importance of continuous learning, developing valuable skills, and taking action towards financial goals. By following the suggested steps and exploring alternative investment options, individuals can work towards achieving financial stability and a prosperous retirement.