Rich Habits Podcast Episode 122: How to Build Wealth Without Obsessing Over Money
Release Date: June 16, 2025
Hosts: Austin Hankwitz and Robert Croak

Introduction

In Episode 122 of the Rich Habits Podcast, hosts Austin Hankwitz and Robert Croak delve into practical strategies for building wealth without the stress of constantly obsessing over money. Tailored for listeners eager to gain financial control through sustainable habits, this episode offers five actionable insights that blend business acumen, financial literacy, and mindful living.

1. Living Below Your Means

Timestamp: [02:13]

Austin Hankwitz kicks off the discussion by emphasizing the foundational principle of living below your means. He explains that financial stability begins with ensuring your monthly expenditures are less than your income. For instance, if the median household income is $78,000 annually (~$6,500 monthly), all expenses—including debt repayments and leisure—should comfortably fit within that budget.

Notable Quote:
"If you're making $100,000 a year and you're spending $120,000 a year, your biggest problem is the person in the mirror." – Austin Hankwitz [02:13]

Robert Croak reinforces this by highlighting the importance of allocating 15% of monthly take-home pay towards investments. He cautions against lifestyle inflation, where increased earnings lead to proportional increases in spending, ultimately hindering long-term wealth accumulation.

2. Investing Early and Diversifying

Timestamp: [04:11]

The hosts stress the significance of starting to invest early to harness the power of compound interest. Robert Croak advises investing in broad-market index funds like the S&P 500 and NASDAQ 100, which represent the largest and most profitable companies in the U.S. This approach ensures exposure to equity in growing businesses, fostering long-term wealth.

Notable Quote:
"Invest early and diversify to let compound interest work its magic." – Robert Croak [04:11]

Austin Hankwitz adds that once listeners reach a milestone, such as a hundred thousand dollars invested, it's time to diversify into other asset classes like cryptocurrency, precious metals, or cash-flowing businesses. He cautions against overcomplicating investments with fleeting trends, advocating for a balanced and strategic diversification.

3. Automating Your Finances

Timestamp: [07:25]

Automation emerges as a favored strategy for both hosts. Austin Hankwitz outlines how automating monthly expenses and investments can eliminate the stress of manual tracking and emotional decision-making. Utilizing platforms like Public.com, listeners can set up automated investment plans that contribute regularly without constant oversight.

Notable Quote:
"Automating your investing removes emotion from the equation and ensures consistency." – Austin Hankwitz [07:25]

Robert Croak echoes this sentiment, emphasizing that automation ensures money is actively working for you rather than sitting idle. He also shares a pro tip about automating bill payments to save money and reduce financial stress.

4. Limiting Financial Noise

Timestamp: [09:58]

In an era overwhelmed by constant financial news and market fluctuations, Robert Croak and Austin Hankwitz advise listeners to limit financial noise. They caution against impulsive reactions to market headlines, which often lead to suboptimal investment decisions like panic selling during downturns.

Notable Quote:
"Avoid obsessively chasing trends and checking headline news; it's a recipe for disaster." – Robert Croak [09:58]

Austin Hankwitz illustrates this by sharing his habit of reviewing investments on a quarterly or semi-annual basis rather than daily, thereby maintaining a long-term perspective and reducing stress.

5. Cultivating Contentment and Defining Enough

Timestamp: [12:53]

The final strategy revolves around cultivating contentment and practicing gratitude. Robert Croak highlights the importance of defining what "enough" means personally, steering clear of societal pressures to match peers' lifestyles. This mindset shift fosters financial contentment and prevents the pitfalls of constant comparison and lifestyle inflation.

Notable Quote:
"Wealth grows faster when you're not constantly chasing more." – Robert Croak [14:02]

Austin Hankwitz shares a personal anecdote about maintaining contentment despite minor setbacks, reinforcing that true wealth encompasses relationships and personal fulfillment, not just financial metrics.

Listener Q&A Highlights

Bridget’s Portfolio Allocation

Timestamp: [20:03]

Bridget, a 64-year-old planning to retire within the next year, inquires about her 60% bonds and 40% stocks allocation recommended by her wealth manager. Both hosts support moving towards a 15% bonds and 85% stocks ratio, emphasizing that being too conservative can hinder potential returns, especially with a 20-year investment horizon.

Notable Quote:
"60% bonds is way too risk-off and you're just going to leave too much money on the table." – Robert Croak [20:51]

Alex’s Consulting Business Advice

Timestamp: [22:54]

Alex seeks guidance on starting a media consulting business. Austin Hankwitz advises on managing cash flow, efficient invoicing, and tax optimization. Robert Croak adds the importance of solid contracts and maximizing write-offs to enhance profitability and reduce tax liabilities.

Notable Quote:
"Make sure you have good contracts because there's nothing worse than doing the work and not getting paid." – Robert Croak [25:18]

Susie’s Gold in Modern Portfolios

Timestamp: [28:06]

Susie questions the relevance of gold in modern investment portfolios amidst alternatives like Bitcoin. Both hosts affirm that gold still plays a crucial role in diversification. They recommend investment vehicles like ETFs GLD and SLV for those hesitant to hold physical gold and highlight new options like NEOS Investments' IAUI ETF for income generation.

Notable Quote:
"A well-balanced portfolio definitely includes gold and bitcoin." – Austin Hankwitz [29:27]

Conclusion

Episode 122 of the Rich Habits Podcast provides a comprehensive roadmap for building sustainable wealth without the anxiety of constant financial monitoring. By living below your means, investing early and diversifying, automating finances, limiting financial noise, and cultivating contentment, listeners can achieve financial freedom gracefully.

Robert Croak and Austin Hankwitz conclude by encouraging listeners to share the podcast, join the Rich Habits Network, and apply these strategies to secure a prosperous and contented financial future.

Notable Closing Quote:
"Having the right mindset is how you build real, generational wealth over a long period of time." – Austin Hankwitz [31:38]

For more insights and to join a community committed to financial growth, subscribe to the Rich Habits Podcast on Spotify and engage with hosts Austin and Robert on their social platforms.