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