109: What I Wish I Was Taught In My 20s

Summary

Rich Habits Podcast
Episode 109: What I Wish I Was Taught In My 20s
Release Date: March 17, 2025

In Episode 109 of the Rich Habits Podcast, hosts Austin Hankwitz and Robert Krok delve into the invaluable lessons they wish they had learned during their twenties. Drawing from Robert’s three decades of entrepreneurial success and Austin’s dynamic experiences as a young entrepreneur, the duo outlines 12 essential financial, business, and personal habits that can set listeners on a path to wealth and fulfillment. This comprehensive summary captures each key point, enriched with notable quotes and timestamps to provide a clear and engaging overview.

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Introduction

Austin Hankwitz opens the episode by highlighting the synergy between his youthful perspective and Robert Krok’s extensive business background. This interplay forms the foundation for their deep dive into the crucial lessons that can transform one’s financial and personal life.

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1. Start Early and Harness Compound Interest

Timestamp: [04:54]

Robert Krok emphasizes the paramount importance of beginning financial endeavors early. He advocates for opening a Roth IRA as a foundational step for young adults to leverage the power of compound interest.

“I believe the Roth IRA and compound interest are your friends and probably the most important things you can do early on to build wealth.” – Robert Krok [05:37]

Austin Hankwitz extends this concept beyond finance, explaining how compounding applies to personal development and business growth. He underscores the significance of incremental daily improvements.

“Putting in the work every single day and allowing that work to compound on itself... is how you improve as a person.” – Austin Hankwitz [05:37]

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2. Think Like an Investor and an Owner, Not Just a Consumer

Timestamp: [06:30]

Transitioning from a consumer mindset to that of an investor is pivotal. Robert Krok advises balancing expenditures by investing in assets when making significant purchases.

“If you're going to buy a $200 pair of shoes, you need to buy $200 worth of the stock at the same time.” – Robert Krok [08:01]

Austin Hankwitz echoes this sentiment, highlighting the long-term benefits of ownership over mere consumption.

“Stop just giving your money to these mega corporations. Give yourself a share of those profits...” – Austin Hankwitz [08:57]

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3. Everything You Want Is on the Other Side of Hard Work

Timestamp: [09:24]

Success demands perseverance. Austin Hankwitz shares his journey, emphasizing the necessity of dedicating extensive hours to achieve entrepreneurial goals.

“Anything you want in this world is on the other side of hard.” – Austin Hankwitz [10:15]

Robert Krok reinforces this by highlighting that action triumphs over mere intelligence.

“Life rewards action, not intelligence.” – Robert Krok [11:13]

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4. Negotiate Everything

Timestamp: [15:49]

Negotiation is a critical skill in both personal and professional realms. Robert Krok advocates for always negotiating, whether it’s for business deals or personal purchases, to maximize value.

“Never be afraid to ask for the ridiculous... you can’t believe what you can do.” – Robert Krok [17:58]

Austin Hankwitz adds that negotiating is synonymous with standing up for oneself, particularly for entrepreneurs building their ventures.

“Stand up for yourself. Negotiate for yourself.” – Austin Hankwitz [18:29]

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5. Systems Over Willpower

Timestamp: [18:29]

Relying solely on willpower is insufficient for sustained success. Robert Krok highlights the importance of establishing systems and processes to ensure consistent growth and scalability in business.

“The more systems you can have in place, the better your company is going to run.” – Robert Krok [19:49]

Austin Hankwitz connects this to personal life, advocating for automated routines to enhance productivity and success.

“Automating your money... setting yourself up for success.” – Austin Hankwitz [19:49]

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6. Failure as a Teacher, Not a Death Sentence

Timestamp: [20:45]

Failure should be redefined as a learning opportunity. Austin Hankwitz shares personal failures and how reframing them has been instrumental in his growth.

“Failure is thought of as a teacher and not as a death sentence.” – Austin Hankwitz [20:45]

Robert Krok concurs, sharing that his numerous failures have been the best teachers, providing wisdom and experience.

“All of my failures... have brought you and I together... failure has always been just the best teacher.” – Robert Krok [22:04]

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7. Credit Matters Early

Timestamp: [27:01]

Building a strong credit history in your twenties is crucial. Austin Hankwitz recounts his struggles with credit lack and urges young listeners to responsibly manage debt to establish a solid credit score.

“A good credit score is very closely tied to how long you've had your credit accounts and how on time your payments are.” – Austin Hankwitz [27:01]

Robert Krok distinguishes between good and bad debt, advocating for the strategic use of credit as a wealth-building tool.

“Good debt is fantastic... bad debt is running up that credit card for things you can't afford.” – Robert Krok [28:10]

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8. Your Network Is Your Net Worth

Timestamp: [28:43]

Building and maintaining a valuable network significantly influences personal and professional success. Robert Krok advises surrounding oneself with tenacious and growth-oriented individuals.

“You don't want to be the smartest person in the room... you want to be leveling up your friendships.” – Robert Krok [28:43]

Austin Hankwitz emphasizes surrounding oneself with like-minded individuals who share similar goals and aspirations.

“Surround yourself with people who are also going that direction.” – Austin Hankwitz [30:17]

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9. Opportunity Cost Is Real

Timestamp: [30:32]

Understanding the concept of opportunity cost is vital for making informed decisions. Austin Hankwitz discusses the importance of valuing one’s time and evaluating the true cost of engagements and projects.

“What is that really gonna cost me? How much time and effort is that gonna cost me?” – Austin Hankwitz [30:32]

Robert Krok warns against the trap of undervaluing time, stressing that unproductive actions can lead to wasted potential.

“Don't do anything that over time can't make you that or more.” – Robert Krok [33:13]

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10. Health Is Wealth

Timestamp: [33:13]

Maintaining good health is foundational to enjoying and sustaining wealth. Robert Krok shares his personal realization that without health, financial success is meaningless.

“All the money in the world doesn't help you if you're not enjoying life.” – Robert Krok [36:05]

Austin Hankwitz reflects on his father’s health struggles to underscore the importance of prioritizing wellness.

“Life is not going to the gym because it's a chore. It's about being grateful to have the opportunity.” – Austin Hankwitz [34:57]

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11. Emergency Funds Are Mandatory

Timestamp: [36:30]

Establishing an emergency fund is non-negotiable. Robert Krok and Austin Hankwitz advocate for saving three to six months’ worth of expenses to safeguard against unforeseen circumstances.

“Every single person should have three to six months of their expenses saved up.” – Robert Krok [38:50]

Austin Hankwitz highlights the peace of mind and financial stability that an emergency fund provides, preventing reliance on credit during crises.

“Having that buffer between you and life is so important.” – Austin Hankwitz [41:21]

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Conclusion

In this episode, Austin Hankwitz and Robert Krok offer a wealth of knowledge distilled from years of experience and introspection. Their candid discussion on the 12 essential lessons serves as a roadmap for young adults aiming to navigate the complexities of financial independence, personal growth, and entrepreneurial success. By implementing these rich habits, listeners are empowered to take control of their financial futures and build a life of abundance and resilience.

“We share our thoughts, share our stories, share our insights and our knowledge based on experience to help everyone.” – Robert Krok [42:26]

“We're not perfect, but here's what we did learn along the way.” – Austin Hankwitz [43:25]

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Key Takeaways:

1. Leverage Compound Interest Early: Start investing as soon as possible to maximize wealth growth over time.
2. Adopt an Ownership Mindset: Shift from being a consumer to an investor to build long-term financial security.
3. Embrace Hard Work: Understand that success requires dedication and perseverance.
4. Master Negotiation Skills: Always negotiate to ensure you’re getting the best value in every transaction.
5. Implement Systems Over Relying on Willpower: Create structured processes to achieve consistent results.
6. Learn from Failure: Treat setbacks as learning opportunities rather than permanent defeats.
7. Build and Maintain Good Credit Early: Establish a strong credit history to unlock future financial opportunities.
8. Cultivate a Valuable Network: Surround yourself with people who inspire and support your growth.
9. Understand Opportunity Costs: Be mindful of how you invest your time and resources.
10. Prioritize Health: Maintain good health to ensure you can enjoy and sustain your wealth.
11. Establish an Emergency Fund: Save diligently to prepare for unexpected financial challenges.

By internalizing these lessons, Rich Habits Podcast listeners can set themselves up for a prosperous and balanced life.

Transcript

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[Austin Hankwitz]

The Rich Habits Podcast brought to you by Public.com, a top 10 business podcast on Spotify. My name is Austin Hankwitz and I'm joined by my co host Robert Krok. Robert is a seasoned entrepreneur in his 50s with lifetime revenues of over 300 million and I'm an entrepreneur in my late 20s with a background in finance and economics. Since quitting my full time job in corporate finance a few years ago, I've built a seven figure media business and actively advise some of the most well known fintech companies around the world. As the show name might suggest, every episode we talk about Rich Habits as they relate to business, finance and mindset. However, we try and bring you two unique perspectives. One from an industry veteran which is Robert, and the other myself, someone who's still in the process of building wealth and figuring it all out. Robert, We've got a fun episode in store for everyone, so why don't you walk us through what we're going to be talking about.

[Robert Krok]

As you all know, Austin and I have a 30 year age gap which makes this podcast so informative and so fun. There are countless things now that my hair gets a little grayer that I wish I was taught in my 20s and Austin is turning 29 this year, so he has some perspective to share as well. And we're so excited and have compiled our list of the top 12 things we wish we were taught in our 20s.

[Austin Hankwitz]

The top 12 things we wish we were Taught in our 20s now this isn't just about like entrepreneurship and investing, but there's also mindset stuff in here. There's also like everyday personal finance. There's relational stuff in here. Right? This is quite literally what we wish we were taught in our 20s about business, finance and mindset. Now, Robert, before we jump into the first point that we want to make, we are really, really excited to announce that we are having free webinar taking place Thursday, March 20th at 4pm Eastern Time. This webinar is going to be completely focused on the Fire Movement, Financial Independence, Retire early if you listen to our podcast or care about personal finance and investing in general, you've probably heard of it. It's where people try and save and invest as much as they possibly can early on in life so that they can have a nest egg large enough that'll allow them to implement the 4% rule and retire early. Some are able to retire in their 40s and even their 30s by implementing this strategy. And so Robert and I thought it was so interesting we wanted to host a webinar and share it with you. We'll also be joined by the Fire ETF Management Team. These are people who have pulled together and Created from scratch ETFs dedicated for people who are implementing the Fire Movement strategies. For example, there's a Wealth Builder ETF that really reminds me of Ray Dalio's All Weather ETF and has actually performed really, really tremendously throughout the volatility we've seen so far in 2025. It's called FIRS, and the other one they have are for people who are in their retirement and they need the income on a monthly basis to support their lifestyle. That one's called firi. So if you want to join us for this webinar to learn more about potentially retiring early and what it means to be a part of the Fire Movement. I'm certainly a part of it myself. Click the link in the Show Notes below. Again, it is Thursday, March 20th at 4:00pm Eastern Time.

[Robert Krok]

Yeah, I'm super excited for this webinar. I think it's kind of a big movement and it's going to be fun to enlighten everyone. And for those of you interested, make sure you remember we only have 500 seats available. It's completely free, so make sure you sign up as soon as possible.

[Austin Hankwitz]

Okay, Robert, let's kick off this episode with the first thing that we wish we were taught in our 20s, and.

[Robert Krok]

That is the importance of getting started early and letting compound do its job. So many people, you guys hear us ramble on and on and on about the Roth IRA being so important, compound interest and all of that. And that is why we chose this one as number one. Because I believe the Roth IRA and compound interest are your friends and probably the most important things you can do early on to build wealth. I always talk about it, even in my speech the other day, that I think the best 18th birthday present that could be presented from a parent would be to open a Roth ira, put some money into it for their child, and get them off on the right track. So for me, that's why it's number one.

[Austin Hankwitz]

Compounding is very, very important. And I think compounding extends further than just investing, but also in business, relational, personal. Like putting in the work every single day and allowing that work to compound on itself day after day, week after week, month after month, year after year, is how you improve as a person. One percent better every day. That's the phrase, right? We've all heard it a hundred times. Just do 1% better today than you did yesterday, and that 1% will compound on itself. So the fact that we said compounding first and foremost is our very first thing we wish we were taught in our 20s just speaks numbers, right? Being able to get invested early and often, but also compound your work, compound your progress week after week is so important. And it's something I wish I learned when I was much, much younger, especially.

[Robert Krok]

When I'm dealing with older business owners and entrepreneurs that are maybe in their 40s, 50s, or 60s. You should never stop learning because as you're constantly learning and staying up to date with changes in the markets, whether it's AI or some new technology that's happening, it keeps you relevant and keeps you continuing to earn more. Letting the compounding do its job not just in your paycheck and in your finances, but also in your life, your lifesty style and your relationships. That is why I think number one is so important. Number two is to think like an investor and an owner and not just a consumer. One of my favorite challenges to help people get into the mindset of being an investor owner is when they're ready to go out and buy that 200 pair of Nike shoes or they want the new Hoka or on running, running shoes. I always challenge people. If you're going to do that, you need to buy $200 worth of the stock at the same time. And if you can't do both, you shouldn't do either. Because I think this is a good way to get people into those baby steps of thinking like an investor and not just a consumer. If you're not thinking like an investor, every weekend you're going to go to a concert or the mall and you're going to blow your money because you're not thinking, what can I do better to get my money working for me and get it out there and get me thinking more like an investor? Because investors and entreprene are always looking for opportunities.

[Austin Hankwitz]

You will never be able to retire unless you're able to stop trading time for money. You know, you're working at 20, 25, $30 an hour, maybe you have a salary, right? But you're trading your time for money. And the way people retire traditionally is they take some of that money and they put it in the stock market, which is owning equity in profitable businesses. And so if you're someone who can make the mindset shift of, maybe I shouldn't just be shopping on Amazon, I should also own some stock in, or maybe I shouldn't just spend my Sundays at Costco, I should own some stock in Costco. That's what we're trying to have you all understand. Stop just giving your money to these mega corporations. Give your money while also owning a slice of the mega corporation, right? Give yourself a share of those profits, let that equity rise and fall and pay you dividends and everything over time. Being an owner is so, so important, especially now as we head into a volatile 2025.

[Robert Krok]

Once you cross over from merely being a consumer to start investing regularly, you're setting up automations, you're buying the cool companies, you're buying the index funds we talk about. You're going to walk a little different, you're going to stand up a little taller, you're going to feel a little more proud. And it is one of the greatest gifts we can give to those of you that are struggling to get started in investing and change that mindset. So I love this point, but they're.

[Austin Hankwitz]

Also going to be comparing the opportunity cost of spending extra money, right? Oh my gosh, if I go splurge with this or I go on this vacation, or I'm splurging here and there, thinking to yourself, wait, what would that have done if I did buy Costco, or if I did buy some s and P500 or, you know, so just kind of having that in the back of your head, right. Shifting from a consumer to an owner and everything as you see it in this world. Right. The lens of ownership versus looking through the lens of consumerism is so, so powerful. So let's now move on to our third what I wish I was taught in my 20s, which for me is understanding that anything you want in life is on other side of hard. This is more of a mindset shift than a personal finance thing. As I look back over the last, let's call it three, four, five years of being an entrepreneur. I've always wanted to be an entrepreneur. I did all these random little things, but it took me putting in the 10,000 hours of work until I became successful. And I think a lot of people, when it comes to either entrepreneurship or their health and fitness or maybe relationally or whatever else, however, trying to accomplish something, it doesn't matter what the objective is. What matters is that you understand where you're going and you understand that you have to just choose your hard. Right? If you want to be a successful entrepreneur, well, your heart is the sacrifice that goes into that. If you want to be a really in shape, fit person, well, the hard is going to the gym every day and not eating sugar. If you want to have a wonderful relationship with your children, maybe the hard is sacrificing some of the work side and the money stuff to spend more time with them. Right? Anything you want, want in this world is on the other side of hard. And the sooner you're able to act upon that, the easier things begin to get.

[Robert Krok]

And I just did a video about this the other day. It's one of my favorite mindset quotes relative to this point we're making here. And it is life rewards action, not intelligence. And I've always loved that because I have found in my 35 years of business and partnerships and friends and all this stuff that the people that are tenacious, the people that go out there and do it, are the ones that really succeed because they're not living in their comfort zone. They're getting out there, they're getting knocked down, they get back up and they do it again and they find their way. And that is why I love this point of being on the other side of hard. Because if it were easy, everyone would be rich and everyone would be successful.

[Austin Hankwitz]

At the end of the day, if you want to accomplish something, put in the work for it. Let the compounding effects continue to work in your favor and just work hard toward it. Robert, I think it's Alex Hormozi that says people that are successful are the ones that do the mundane things longer than anyone else, right?

[Robert Krok]

Yep.

[Austin Hankwitz]

Success is inevitable if you just continue, continue, continue and have time on your side. And so that can again be for entrepreneurship, that can be with finance, that can be with your business, that can be relationally, physically, emotionally. Right, it doesn't matter. But putting in the mundane work every day. And I wish I understood that sooner in my 20s.

[Robert Krok]

Yeah, for me, when I'm looking at a new hire or a partner or an opportunity, I want to find the people that are tenacious. I would take tenacity over talent every day of the week because I want people that are willing to get knocked down over and over again and keep getting back up and find a way. So I love this point.

[Austin Hankwitz]

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[Robert Krok]

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[Austin Hankwitz]

Now my next point, Robert, is something I wish someone taught me before I went to college, which was do not look for cheap, instead look for value. Now this is specifically talking about stocks and investing. I thought that oh, if I buy a penny stock or I buy a cheap stock or maybe an alt cryptocurrency for 2 cents, right? I was thinking how to get rich quick. At the end of the day it's not about how to get rich quick because that doesn't exactly exist. What matters is what the value of this company investment or how it continues to trend higher. Fundamentally over time and not just trying to flip it real quick for a quick profit. Like it was so hard for me in the beginning to really come to terms with. Wow, I guess I can't get rich quick by trading penny stocks. I guess the way I have to do it is what Warren Buffett does and just buy something that's undervalued, be a value investor and hold on for a long period of time. I wish someone grabbed me by my shoulders when I was 21 years old to say, stop up gambling on this hearing aid penny stock. That's not going to go anywhere, dude. It doesn't make sense because man, did it take me a while to get past that.

[Robert Krok]

Well, we see it today all the time in the Rich Habits Network and through our followers where people look at the price of a stock and think if the price is cheap, that means it has a better chance of going up and having a greater roi. And that's just not the way it works. And so I love this anecdote of stop worrying about the price of the stock and worry about the value proposition and where the company is going. Price means nothing. So many people equate the price and don't look at the upside potential of the opportunity. So I love this point.

[Austin Hankwitz]

And Robert, my favorite example, this is Costco, right? Costco stock has been crushing it. The stock over the last 10 years is up 500%. And in the last five years it's up 200%. But what's cool is if you look back in, let's call it 2023, the stock was at $500 a just, you know, 18 months ago, it was at 500 bucks a share. It recently eclipsed $1100 a share. But you know, to your point, people see 500 and they're like, no, I don't want to touch that. That's too expensive. You know. And so just understanding that stocks can always go higher no matter what the stock price is. Think in terms of value fundamentals, you know, cash flow, profits, things like that. I wish someone taught me that sooner in my 20s.

[Robert Krok]

Okay, so let's get to my next favorite. And I really, really love that we went off the rails a little bit on this. And we're really just kind of speaking from experience over my last 30 years, your last 10 years, putting it all together. And that brings me to my next one. Negotiate everything. I'm going to say it again. Negotiate everything. I think that the power of negotiation, whether it comes to running a business or buying high ticket items or even if it's just in a normal, you know, transaction for your job or a pay raise or anything. You need to learn the negotiation is so important and why you should practice it and really engage with it and learn how to be a good negotiator. I think it has helped me tremendously over the decades in understanding to ask for what you want and really push the envelope. I would rather get a really quick hell no f you than get someone to say, yep, I'll take it. Because guess what? If they say it quickly and they respond quickly, you left too much money on the table. So I love this one because it really emphasizes you going for it. Some of the greatest investments I've made in my lifetime all came from deals that didn't even look like they were an opportunity because I negotiated it into an opportunity. I just am really a big proponent of negotiating for yourself and negotiating for everything.

[Austin Hankwitz]

I couldn't agree more, Robert. I think the term the phrase rather negotiate for yourself is synonymous to, like, just stand up for yourself. Especially if you're an early entrepreneur or you're someone who's really trying to start to, you know, dig your feet in the dirt and say, no, I know what I'm worth. I'm not going to just take this opportunity because I need the money, or I'm not going to just take this job because I need to build my book of business or my case studies. Right? Stand up for yourself. Negotiate for yourself. Improve your worth to everyone else out.

[Robert Krok]

There and never be afraid to ask for the ridiculous because especially right now, we hear the talk all the time that all the baby boomers are retiring. They don't know how to sell their business. So never be afraid to ask for owner financing. Never be afraid to offer something incredibly low because you think it fits your budget or where you believe that business or home should be priced rather than what they're asking for because you'd be shocked at what you can do. Let me kick off the next one and I think this one will resonate with a lot of people, especially new business owners, entrepreneurs and people out there that are finding their way and that is systems beat willpower. So, so important. I see entrepreneurs all the time that have figured out how to grow their business. They figured out how to make money. They might have a cool website or they have good branding, but they don't have the systems in place to create scale and to create profit to where they should be. So I think this is a very, very important one for all of you entrepreneur minds out there is because the more systems you can have in place. And the more processes, the better your company is going to run, and it's going to allow you to work on your company more and not in your company. So I think this is a really.

[Austin Hankwitz]

Really important point in extending this beyond entrepreneurship. Robert, we made a recent podcast episode talking about automating your money in 2025. So just having those systems in place, the routines on a daily basis to set yourself up for success, no matter what you're trying to succeed in, putting those systems in place, the routine, setting yourself up for success, no matter what you're trying to achieve is something I wish someone taught me when I was much younger.

[Robert Krok]

Because when you think about it, the more small things you do, like you said earlier about the 1% better every day, the small systems, the small habits, just create great returns over time because it takes out so many stress points. And right now, we live in the greatest era known to mankind to create systems and automate and simplify your life, your business, and your money. And so I just love this part of this episode.

[Austin Hankwitz]

Now let's jump to our next point of what we wish we Learned in our 20s, which is the fact that failure should be thought of as a teacher and not as a death sentence. I failed in business, Robert. You failed in business. I think everyone has failed somehow, some way in business or even when it comes to, you know, beyond business, let's just like, you know, think about that holistically. If it is in a friendship, maybe it is with a reaching a financial goal, maybe it's failing on a idea to go do something on a dream vacation, right? Whatever it turns into, failure is around us all the time and everywhere in our lives. But making the mindset shift to say, this wasn't a failure, this was an opportunity for me to learn. What can I do different now going forward now that I have failed? Oh, this failed because of abc happened. Now I know next time I do this to watch out for ABC or say, hey, this really, really worked. Let me make sure I can implement that again in the future while also being cognizant of the things that didn't work. Having the glass half full mindset, that failure as a teacher, not a death sentence, really, really helped me progress relationally and even financially in my late 20s. Now, it's just been a game changer for me.

[Robert Krok]

All of my failures over the last 30 years have brought you and I together and I think made me uniquely qualified because I'm willing to share my stories, good and bad, to be able to help the masses. And I think that is one of the best parts of what we get to do every day with the podcast is we can get down into the nitty gritty of all the things that have gone wrong and all the things that have gone right in my career and your career. And I think it's just so special to be able to share that because so many people look at, oh, that person failed or that didn't work out, and then they start to cast this doubt on people. And I look at it, that failure has always been just the best teacher because you just get all this wisdom and you get all this experience and we wouldn't be here today, I don't believe, if I hadn't failed so many times in the last 30 years. So I love this point.

[Austin Hankwitz]

And so to your point, like, really looking at this from a teaching perspective and not from a shaming perspective is a really, really important mindset shift to make. But I will say a lot of the shame does not come from ourselves. Sometimes it comes from our peers. We think, oh, I don't want to let down my family. What are my friends going to think about me if my business fails? What are my, you know, coworkers going to think about? What's my spouse going to think about me if I can't make this idea work or if I end up, you know, learning about something and I fail at it? Make the mindset shift as quickly as you can that no one's opinion about your failure but yourselves matters. Now, before we jump into this next point, let's take a moment to hear from this episode sponsor, Blossom. Investing is more fun when you're doing it alongside like minded people. From dividends to growth stocks, there's a community for everyone on the Blossom app. Blossom is not an online broker. They're a social investing app built around transparency, essentially a social media platform, but for investors.

[Robert Krok]

And transparency is key when it comes to investing. You all know just how important this is because you listen to our podcast. I've already connected my personal accounts to Blossom because I enjoy seeing how everything is divided up and performing on a daily basis. And you can see that as well. Additionally, they offer duolingo style educational video content for those of you still learning.

[Austin Hankwitz]

They were even recognized as a top 25 app for 2025 by the Apple App Store and for good reason. So if you've not yet joined Blossom, we really encourage you to do so. They have over 200,000 users over there, so we promise you'll be able to find people that are interested in things that you're interested in. And it's just a really easy, fun way to find your community and invest transparently. Click the link in the Show Notes below to sign up for Blossom or simply type in Blossom in the Apple App Store. All right, let's jump to our next point. I didn't learn this, unfortunately, until I think I was 24, 25 years old, and that is that credit matters early. The biggest, like, so big frustration I had with my parents, and we had a conversation about this. I was like, mom, dad, why didn't you tell me to open up a credit card at 18 years old? I could get the Amazon prime student card, put a tank of gas on it once a month. Month. And then pay it off so I could start building credit history. And unfortunately, my parents didn't really understand credit all that much, so they didn't, you know, they just weren't helpful. I had to go learn about that on my own there. But I didn't have a credit card until I was, I think, 23 or 24 years old. It was a secured credit card. It was a whole thing with my bank. It was just a weird process. But I cannot emphasize how important it is at 18, 19, 20, 20 in your 20s, right, to have a good credit score and to understand how to use debt responsibly, use debt as a tool. A lot of people think I'm saying, go get a credit card and go splurge at Amazon or Target or Walmart. Go buy the things. I'm not saying that at all. What I am saying is you will have a credit score for the rest of your life. And your credit score is very closely tied to how long you've had your credit accounts and how on time your payments are with those accounts. I luckily have both now that are looking pretty decent. So my credit score, I think, is like in the low 800s at the moment. But I wish someone told me about this sooner because I remember I had my student loans. I had a interest rate on my student loans because I didn't have credit yet. I went to go buy my first car by myself. I had a high interest rate on that because I didn't have any credit yet. Right? All these things were piling up against me because I didn't have a decent credit score because I didn't know better. So that is a huge thing. I want everyone that's listening right now that might be a parent, maybe you just had a kid graduate high school or graduate college. Maybe they're in college or you Know whatever that might be if they're in their late teens or early 20s, is teach them how to one, open up a credit card, treat it as a tool to build credit, show credit history, transaction history, payment history, all the good things when it comes to credit, so that when they go buy their first house, go buy their first car, you know, go get that first apartment, they have a good credit score to show for it.

[Robert Krok]

I love this, and it's one of my favorite kind of anecdotes relative to Dave Ramsey, because he said debt is bad. And it just really doesn't make sense to me because I think good debt is fantastic. It's just understanding the difference between good debt and bad debt. And I think this is a really strong point for people to understand having a good credit score, having good debt. Say it's your mortgage. That's good debt in most situations. Maybe you're using an SBA loan for your business. That's good debt in most situations. So if you know how to manage your debt and build your credit successfully, it is an incredible tool for building wealth. Wealth that some people just don't understand, and that's why they talk bad about it. So as long as everyone understands the difference between good debt and bad debt, you're going to be in great shape. Because to us, bad debt is like Austin alluded to, that's running up that credit card for things you can't afford. Paying the minimum balance and carrying a balance for months, if not years, that is bad debt. We don't want any of you to do that. We want you to understand good debt and what, what good credit scores can do for you.

[Austin Hankwitz]

Good debt, Robert, helps you build your net worth. Bad debt takes away from your net worth. Right? So good debt, to your point, having debt on your business, to go start it, buy some equipment so you can go make all these profits. I'm here for that. That's cool. Have fun on the flip side. Hey, Austin, you went into debt to go buy a depreciating asset like a car. And that car is going down in value like a rock. That's bad debt. That's not smart. So understanding the differences between good debt and bad debt, but more importantly, understanding and learning building a good credit score as early as possible. Super, super important.

[Robert Krok]

That leads me to our next point. And I like this one a lot. I know it's used a lot, but I think it's very important for us to expand on it. And that is your network is your net worth. We talk about this all the time. It's been thrown around for decades that the top five people you hang around and associate the most are going to be what you become. What are you going to be like because of the habits they have and how you. You kind of attach to that. And I think it's very important for people to understand. You don't want to be the smartest person in the room. You don't want to be the person in the room with the most money. You want to be leveling up your friendships and your relationships throughout your life. So many people are afraid to let go of friends from high school and college because they feel, oh, well, we had so much fun back then. But the problem is those people will drag you down. Whether they have lack mentality, victim mentality, they're not going anywhere, they're still partying every weekend. And yes, it's okay to see them on the holidays or a couple times a year, but you don't want those people to affect your daily life and your growth patterns because you're staying in your comfort zone with people You've known for 25 years. I know that sounds harsh, but I promise you, the reality is you need to be leveling up your network and leveling up your friends over time because it will help you rise up as well. There's an old saying that high tides raise all ships, and in this instance, that is what your friend group and your network should look like.

[Austin Hankwitz]

I think the biggest thing to take from this point, Robert, is one, understand where you're going and then two, surround yourself with people who are also going that direction. And then learn from each other, work together, be as, you know, helpful as possible.

[Robert Krok]

I have some friends back home, where I'm from, Toledo, Ohio, that are some of my great, great memories and lifelong friends. I will never cut them out of my life, but I also don't spend every single day with them. I actually had an incidence two weeks ago at a dinner, had a friend, he joined. I said, it's a business meeting, we're going to be talking about some real estate stuff. He's in real estate. And I had to stop him mid conversation because he started talking about problems in the past, his relationships in the past, problems with his kids and all. I go, no, no, no, know, I'm not here for this. I am here to talk to people that I respect in the industry about projects and where we're going next in the real estate industry. So please, I am not interested in that conversation. That might sound harsh, but I am here to grow, learn, and have a Better life for myself and everyone around me. And that is why I don't dwell on things that don't bring value and betterment to my life and the people around me.

[Austin Hankwitz]

So that now brings me to number 10 on our list of 12, which is opportunity Cost is real. I remember back in the beginning, Robert, as someone who was a young entrepreneur just trying to figure it out. I would just spend so much time trying to learn and just, like, investing into things, investing my time and money into things that just didn't work out. The older I got, the more I understood that, wait a second. Before I start this idea or this project or this task or even invest in this thing, whatever it might be, I need to go instead, say, okay, what is that really gonna cost me? How much time and effort is that gonna cost me? And I think it's Naval Ravikant that has this really, like, interesting way of thinking about time. He puts a dollar amount on his hours. He says, $5,000 an hour is what I'm worth. Now, I'm not gonna say that's what I'm worth. That's what naval is worth. And his brain, brain. So he goes, I'm worth $5,000 an hour. If this project doesn't produce for me, at least that on the back end, after I understand how much time I'm investing into this, I don't want to do it. And sometimes it's a project, but other times, it might be a relationship. Maybe it's trying to go, you know, learn something or start a new skill or figure something out that you think might, you know, turn into something fun at the end of the day? What's important here is to understand your value, your time. You know, how much much time do you want to spend learning or trying this new thing before it doesn't make sense anymore? I have been caught in the trap of, oh, I'm going to learn or start or do or have fun with, and just go build, turn to zero, right? All that time was wasted. And I wish I had a better direction as to where to put that time and energy. Now, looking back at it, what do.

[Robert Krok]

You believe the value of your time is? And don't do anything that over time can't make you that or more because everyone thinks they have enough time. You're 29 years old. Like, you, Austin, you're like, hey, I'm coming up to 30. It's great. And you're different because you're on top of your money. You're always on top of your skill set. But a Lot of people coast through life and wake up at 47 years old and go, oh, and they have that moment. They don't have a net worth. They don't have anything to show for it. They haven't improved on their Skill set in 15 years. They're just kind of logging along and doing the job and punching the clock. That is what you don't want to do. And if you understand the opportunity cost of your time relative to what you believe the value of your time is, you're going to live a much happier and better life because you're going to ask for more for yourself. Okay, so I know that was a little long winded, but let's get into the next one. And that is health is wealth. At the end of the day, no matter how much money you have, if you don't have your health, you are in trouble. I was victim of that during the Silly Bands era. I was so busy working 14, 16 hours a day, I was building this massive company. We had thousands of employees. But I stopped for a very long time, sticking with the plan of never getting out of shape and stop being healthy. So finally I hired somebody to cook for me and prepare meals. I put a gym in our building. So please, please, please always remember that health is wealth as well. Because as you get older like I am, you have to realize all the money in the world doesn't help you if you're not enjoying life and you're not going to live a long life.

[Austin Hankwitz]

And as someone who In 2025, I think I'm down like 7 or 8 pounds, right. I'm trying to get back in shape myself. Going to the gym here and there, it's so important. And I look at people around me. My dad's an example of this. Now he's nearly 80 years old, but. But I mean, he's really struggling health wise. And I'm not gonna say it's because of, you know, specific choices that he made, but I look around and I see on the Internet some other people who are close to his age that are rocking and rolling just fine. And so I guess what I'm trying to get at here is that I really hope I can be as spry as you are, Robert, at your age, right. I know you're playing tennis all the time. You're a very healthy individual and having that as an underlying theme of your life. Life, right. It's not going to the gym because it's a chore. It's going to the gym because you are grateful to have the opportunity to still be able to run, to still be able to get your heart rate up, to still be able to go play the sports. Right. Having that glass half full mentality about getting your heart rate up and being healthy and eating right is, I mean, that's how lucky are we to be able to run and jump and do these things as healthy individuals? As I've gotten older, I just have realized how important that is.

[Robert Krok]

Yeah, I love that. And think of it from this perspective. How much money would Steve Jobs have given to live five more years? And that is why it's so important for people to understand. Don't chase the money, chase the lifestyle that you desire for yourself. Because personal finance is personal and everyone's life is different and you don't want to find yourself with all the money in the world but no way to enjoy it. So just keep that in mind. Mind.

[Austin Hankwitz]

Now, before we jump into our next point, let's take a moment to hear from this episode's sponsor, Masterworks. Robert I saw bank of America recently surveyed a bunch of wealthy individuals and I learned something pretty surprising. By the end of next year, the ultra high net worth individuals out there could be deploying up to 11% of their portfolios to find art and collectibles. Now I've known that art has historically been an asset class that is celebrated for its lack of correlation to other popular assets like the stock market for the last three decades. And I think that's pretty important, especially as we see continued volatility in 2025.

[Robert Krok]

Yes, the sector definitely looks like it's going to rebound from its 2022 highs. And Sotheby's just had their first big auction of 2025 and it nearly topped the highest end of their internal estimates. Not to mention, the co founder of a global private equity firm, Blackstone, has quietly been buying up art for impressive prices. So that's definitely good news for the sector. And we always preach diversification because we have our own investments in art and we've both been using Masterworks art investing platform for over five years now and we love it. They do a great job.

[Austin Hankwitz]

That's right. Both of us have been investing with Masterworks, the sponsor of today's episode, and we even interviewed their founder and CEO Scott Lynn on this show last year. Since that interview, they've crossed over a billion dollars in capital featuring artwork offerings that typically range from between a million to $20 million. But with Masterworks, you don't need to spend millions or be an art expert. Masterworks has offered investments in over 450 works and they've exited 23 with their investors realizing annual net returns including 17.6%, 17.8% and 21.5% on those works held longer than one year. So join over 1 million users on Masterworks at Masterworks Art Forward slash Rich Habits, which is also going to be in the show notes of this episode.

[Robert Krok]

As with any investment, past performance is not indicative of future returns. Investing always involves risk sale returns are not inclusive of unsold works and important regulation. A disclosures can be found at masterworks.comfront/cd.

[Austin Hankwitz]

Now, Robert, let's wrap up the episode with our last what I Wish I was taught in my 20s point, which is that emergency funds just are not optional. They are mandatory. Right? We all know Murphy's Law. If it can go wrong, it will go wrong. And it just happens to go wrong exactly at the wrong time. So here's what Robert and I think. We think every single person should have three to six months of their expenses saved up in sitting in a high yield Savings account on public.com growing for them over time and acting as that buffer between them and life. Maybe you have to go get new tires for your car or something mechanically goes wrong. Maybe you have to go replace your AC unit at your house or maybe there's a death in the family. Hospital, medical bills. Right. Things go wrong all the time. And having that buffer between you and life is so important because it allows you to stay invested in the markets with your retirement accounts. It allows you to sleep easier at night and allows you the flexibility to live life on your own terms.

[Robert Krok]

I love this because we've talked about this. It was probably about a year ago. We did it in an episode. And that is the vicious cycle that everyone goes through with their money. And right now we're coming into spring, so it's going to be wedding season soon. You have that fringe friend that you want to go to their wedding. They invited you, you went to college with them. So you put it on a credit card. Then all of a sudden you get back, you had a blast, you met some new friends. It was worth it. Oh my God. But you're paying on that credit card for months because you didn't have the emergency fund, you didn't have the bridge account to be able to use money that's in a high yield savings or whatever to pay for it. Then the holiday season comes around, so you've got to fly back home to be with the parents and the family. Boom. You get the credit card out, you buy all The Christmas presents, you run the credit card up. Then you got to go into Q1 of the next year to pay that down. And it's a vicious, vicious cycle. So we always like to help people understand that an emergency fund is for emergencies. It is not an investment account. Do we want you to have it working for you? Yes. That's why Austin alluded to having it in a high yield savings account. Make that four, four and a half percent, maybe 5%. Great way to go. But you have access to these funds anytime you need them for these emergencies. Like tires, like a trip you have to go on, like a family emergency, rather than running up the credit card. I love this as our last point, and I hope all of you are taking a ton of notes.

[Austin Hankwitz]

Now that I have that 20, 30, $40,000 sitting in a high yield savings account, I feel so much more empowered, right? Just having the opportunity to make decisions for myself as well as knowing if anything goes wrong. I got a plan and I have some money set aside to make sure that things can go right again. The future.

[Robert Krok]

That's why I love what we do every single day for the Rich Habits Podcast and the Rich Habits Network. Share our thoughts, share our stories, share our insights and our knowledge based on experience to be able to help everyone. Everyone is going through something financially with their business, with their mindset. They might have a family member going through something. And that is why it's such an honor that we get to do this every single day to tens of thousands of people that listen. Because we are here to share this information, be vulnerable, and help people figure it out along the way. Because life gets in the way. It's not always easy. And I've been through it all. I've been very, very open and honest about all the things I've gone through, good, bad and ugly. And I hope it helps anyone out there that follows along watches the podcast or is part of the Rich Habits Network.

[Austin Hankwitz]

Robert this episode has felt like walking down memory lane, right? Talking about things that, that you know. To your point, we're getting vulnerable here. I've made mistakes, you've made mistakes. And just being able to feel comfortable enough to share those with people, I think is the entire point of this podcast saying, yeah, we're not perfect, but here's what we did learn along the way. And I think this episode really represents that. As a quick reminder, we're hosting a webinar on Thursday, March 20 at 4pm Eastern Time. The link to sign up for that is in the show notes below. It's completely free. And speaking of free, if you've not yet done a seven day free trial of the Rich Habits Network, you need to go do that. We've had, I think, Robert, over 20 people so far in the month of March do a free trial and like 17 of them decided to stay. It's crazy. Everyone loves this. We're hosting live streams, we've got eight hours of video coursework. We're in the DMs with you guys. It's just a cool way to connect with our biggest fans of the show. So go check out the Rich Habits Network using the link in the show notes below, below.

[Robert Krok]

Thank you all for joining each and every week. We really appreciate you more than you know.

[Austin Hankwitz]

Thanks everyone and have a great start to your week.