45: Getting Rich, Not Looking Rich, in 2024 | Rich Habits Podcast

Intro

The “Rich Habits Podcast” is hosted by Austin Hankwitz and Robert Croak, offering unique perspectives on rich habits related to business, finance, and mindset. In this episode, titled “Getting Rich, Not Looking Rich, in 2024,” the hosts delve into the concept of being rich, not just appearing rich. They emphasize the downsides of continually purchasing depreciating assets and luxury items, urging listeners to focus on financial stability, investing, and creating a better future. The hosts also discuss various strategies for debt management, savings, investments, and retirement planning.

Main Takeaways

Developing Rich Habits for 2024

• The hosts are running a January email challenge to help listeners develop new rich habits for 2024.
• The challenge focuses on tracking net worth, diversifying investments, creating velocity with money, and automating investments.

Avoiding Impulsive Purchases and Living Beyond Means

• Stop living beyond your means and making impulsive purchases.
• Overspending can have a negative impact on savings and investments.
• Focus on delayed gratification and consider the long-term financial impact before making purchases.
• Distinguish between needs and wants to make informed spending decisions.
• Avoid buying items to impress others with money that you don’t have; prioritize investing, building an emergency fund, and paying off high-interest debt.

Paying Off High-Interest Debt and Investing

• Pay off high-interest debt before investing, as high-interest debt cannot be out-invested.
• Start by paying off high-interest debt to free up money for investing.
• Shift your mindset from admiring expensive items to considering their monthly payments.
• Example of paying off $180/month student loan debt to then invest that money.
• Encouragement to focus on paying off high-interest debt in 2024 to free up money for saving and investing.

Retirement Planning and Financial Freedom

• Save and invest 15 to 20 percent of your household net income monthly.
• Get your budget in order, understand your debt-to-income ratio, and automate your investments.
• Prioritize getting the free money from your employer by investing up to the match on your 401k.
• Consider contributing to a Roth IRA after taking advantage of the employer match.
• Understand your lifestyle goals in retirement and work backward to determine your retirement number.
• Continuous learning and planning are essential for a stress-free retirement.

Investment Opportunities and Real Estate

• Explore potential investment opportunities in ETFs and bonds for 2024.
• Consider buying duplexes, triplexes, or quadplexes as an investment opportunity.
• Utilize platforms like Zillow and join local real estate investor Facebook groups to learn about potential investment areas.
• Highlight the Fanny May five percent down program as a great financing option for buying properties.
• Find properties in growing areas and consider fixer-uppers for potential upside.
• Seek advice on finding and vetting tenants for rental properties.
• Screen potential tenants using software platforms for screening and reference checks.

Building Emergency Fund and Investing

• Prioritize building a small emergency fund to avoid high-interest debt during emergencies.
• Focus on paying off high-interest debt such as credit cards, personal loans, and medical bills.
• Once debt-free, increase the emergency fund and start investing in index funds and assets.
• Focus on one or two financial goals at a time to be intentional and effective.
• Start investing when you have $10-20k saved up.

Summary

Developing Rich Habits for 2024

Austin and Robert are running a January email challenge to help listeners develop new rich habits for 2024. The challenge focuses on tracking net worth, diversifying investments, creating velocity with money, and automating investments. By participating in this challenge, listeners can kickstart their journey towards financial success in the new year.

Avoiding Impulsive Purchases and Living Beyond Means

The hosts emphasize the importance of avoiding impulsive purchases and living beyond your means. Continually purchasing depreciating assets and luxury items can hinder financial stability, savings, and investments. They encourage listeners to practice delayed gratification, consider the long-term financial impact before making purchases, and distinguish between needs and wants.

Paying Off High-Interest Debt and Investing

Paying off high-interest debt is crucial before investing. High-interest debt cannot be out-invested, so it’s important to prioritize debt repayment. By paying off high-interest debt, listeners can free up money for saving and investing. The hosts provide an example of paying off student loan debt to illustrate the potential financial benefits of debt repayment.

Retirement Planning and Financial Freedom

The hosts stress the importance of retirement planning and achieving financial freedom. They advise saving and investing 15 to 20 percent of household net income monthly. Listeners are encouraged to get their budget in order, understand their debt-to-income ratio, and automate their investments. By taking advantage of employer matches on 401k contributions and contributing to a Roth IRA, individuals can optimize their retirement savings.

Investment Opportunities and Real Estate

Austin and Robert discuss potential investment opportunities for 2024, including ETFs and bonds. They also delve into the topic of real estate investment, suggesting buying duplexes, triplexes, or quadplexes as a viable option. Listeners are advised to use platforms like Zillow and join local real estate investor Facebook groups to gain insights into potential investment areas. The hosts also highlight financing options and the importance of finding properties in growing areas.

Building Emergency Fund and Investing

The hosts emphasize the importance of building an emergency fund to avoid high-interest debt during emergencies. They advise prioritizing the payment of high-interest debt, such as credit cards, personal loans, and medical bills. Once debt-free, individuals can focus on increasing their emergency fund and start investing in index funds and assets. By focusing on one or two financial goals at a time, individuals can be more intentional and effective in their financial journey.

Conclusion

In conclusion, the “Rich Habits Podcast” episode “Getting Rich, Not Looking Rich, in 2024” provides valuable insights into developing rich habits, avoiding impulsive purchases, paying off high-interest debt, retirement planning, investment opportunities, and building an emergency fund. By following the advice and strategies shared by Austin and Robert, listeners can take steps towards financial stability, growth, and a stress-free retirement. With proper planning, mindset shifts, and informed decision-making, individuals can achieve their financial goals and create a better future.