Rich Habits Podcast Episode 123: How Rich People Buy Back Their Time

Release Date: June 23, 2025
Hosts: Austin Hankwitz and Robert Croak

Overview

In Episode 123 of the Rich Habits Podcast, hosts Austin Hankwitz and Robert Croak delve into the strategies that wealthy individuals employ to reclaim their time, enabling them to lead more fulfilling and stress-free lives. Scheduled for release on June 23, 2025, this episode provides actionable insights and practical advice for listeners aspiring to optimize their time and financial well-being.

1. Understanding the ROI of Time

(00:54 - 04:42)

Key Points:

• Value of Time: Wealthy individuals assess the monetary value of their time to make informed decisions about delegating tasks.
• Hourly Return on Investment (ROI): Calculating the potential earnings against the time spent on various activities helps in determining whether to outsource tasks.
• Practical Application: Austin shares his personal example of hiring house cleaners, highlighting the trade-off between cost and time saved.

Notable Quotes:

• Austin Hankwitz ([00:54]): "Money isn't the goal. It's the tool people use to buy back their time."
• Robert Croak ([02:30]): "Creating a life where you have systems and processes in place that reduce friction and headaches."

Insights: Understanding the ROI of time is fundamental for anyone looking to buy back their time. By evaluating how much each hour of their time is worth, individuals can prioritize tasks that contribute to their income or personal satisfaction and delegate or eliminate those that do not.

2. Buying Expertise from Mentors

(07:05 - 08:28)

Key Points:

• Mentorship: Investing in mentorship from experienced professionals accelerates learning and avoids common pitfalls.
• Learning from Others' Mistakes: Acquiring knowledge of what not to do is as valuable as understanding best practices.
• Real-Life Example: Robert discusses how mentorship in real estate prevented costly errors in his early deals.

Notable Quotes:

• Austin Hankwitz ([08:28]): "Buying expertise is not just knowledge of how to do something better, but it's knowledge of what to avoid along the way."

Insights: Rich individuals leverage the experience of others to streamline their growth and minimize mistakes. This strategy not only saves time but also enhances the quality of their endeavors by applying proven methods and avoiding known errors.

3. Making Money While You Sleep (Mailbox Money)

(08:38 - 11:07)

Key Points:

• Passive Income Streams: Investments that generate income without active involvement, such as high-yield savings accounts, ETFs, and real estate.
• High-Yield Savings: Utilizing platforms like Public.com to earn significant interest on savings.
• ETFs and Real Estate: Investing in NEOS funds and real estate through platforms like Fundrise to build diversified income streams.
• Compounding Growth: Emphasizing the importance of consistent investment to benefit from compounding returns over time.

Notable Quotes:

• Austin Hankwitz ([08:38]): "Rich people use strategies to make what we call mailbox money."
• Robert Croak ([10:22]): "Stay consistent and as we always say, be diversified so you can start earning money while you sleep."

Insights: Generating passive income is a cornerstone of financial independence for the wealthy. By strategically investing in various assets, individuals can ensure a steady flow of income that enhances their financial security and frees up their time for other pursuits.

4. The Art of Saying No

(11:25 - 13:50)

Key Points:

• Focus and Discipline: Saying no to distractions and non-essential opportunities allows individuals to concentrate on their primary goals.
• Avoiding Shiny Ball Syndrome: Commitment to long-term projects rather than jumping between new ideas ensures steady progress.
• Compounding Efforts: Continuous improvement in existing successful areas yields significant results over time.

Notable Quotes:

• Austin Hankwitz ([11:25]): "The word no is a complete sentence."
• Robert Croak ([12:22]): "People lack execution on their goals because they bounce from project to project."

Insights: The ability to say no is crucial for maintaining focus and achieving long-term success. By prioritizing meaningful activities and declining unproductive ones, individuals can enhance their efficiency and ensure sustained growth in their personal and professional lives.

Q&A Highlights

Question 1: House Hacking and 1031 Exchange
(17:15 - 23:18)
Anna E. inquires about purchasing a duplex in Los Angeles with a 1031 exchange and using a Fannie Mae 5% down mortgage. Robert explains that the 1031 exchange does not impact the mortgage process and emphasizes the benefits of house hacking for building equity and generating rental income.

Question 2: Upsizing While Leveraging Existing Equity
(20:10 - 23:18)
AJF asks whether to sell his current home with a low mortgage rate to upsize. Both hosts advise against selling, highlighting the advantages of keeping the property as a rental to generate passive income while saving for a new down payment.

Question 3: Tax Benefits of Using an LLC vs. W2
(24:14 - 31:53)
Rebecca J. seeks clarification on the tax benefits of operating through an LLC versus being a W2 employee. Robert and Austin discuss the advantages of LLCs, including asset protection and tax optimization through business expenses and S corporation elections. They recommend consulting a CPA to tailor strategies to individual circumstances.

Notable Quotes:

• Robert Croak ([24:48]): "You want as much layering as you can from your assets to anyone that wants to take them."
• Austin Hankwitz ([29:12]): "Tracking those expenses is essential, and tools like the Xena card can be a game changer."

Conclusion

In this insightful episode, Austin Hankwitz and Robert Croak provide a comprehensive guide on how the rich strategically buy back their time through understanding the ROI of their hours, investing in expertise, creating passive income streams, and mastering the art of saying no. The discussed strategies are not only practical but also adaptable, making them valuable for listeners at various stages of their financial journeys. Additionally, the Q&A segment offers personalized advice, reinforcing the episode's actionable approach.

By implementing these rich habits, individuals can work towards a more optimized and fulfilling life, ultimately leading to financial independence and greater personal freedom.

Notable Additional Resources:

• High-Yield Savings with Public.com: Earn up to 4.1% APY on savings.
• Investing Platforms Mentioned: NEOS funds, Fundrise for real estate, Masterworks for art investments.
• Tools for Small Business Owners: Xena Card for expense tracking.

Remember: Always consult with financial advisors or tax professionals before making significant financial decisions.