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- [00:00]
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- [00:30]
Guild Representative
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- [00:55]
Austin Hankwitz
Not an offer to invest. Terms and conditions supply the Guild is a fictional property of Activision trademark copyright 2025. Hey everyone and welcome back to the Rich Habits podcast, a top 10 business podcast on Spotify brought to you by public.com this week's episode is all about preventing you from having those knee jerk reactions every time the market sells off and your portfolio goes down. My name is Austin Hankwitz and I'm joined by my co host Robert Kroke. Robert is a seasoned entrepreneur with lifetime revenues of over 300 million. I'm a multi millionaire in my late 20s with a background in finance and economics. As the show name might suggest, every episode we talk about rich habits as they relate to business, finance and mindset. So Robert, what are we going to be talking about in today's episode?
- [01:36]
Robert Kroke
In this week's episode of the Rich Habits Podcast, we're going to teach you the three strategies we personally used when building our millions that kept us on course during times of economic uncertainty and stock market volatility. Last week, the Bureau of Labor Statistics revised the May and June's jobs reports, down by over 250,000 jobs. That's a quarter million jobs we thought were created during the last few months that were just pixie dust. When this information was shared to the public, the markets went crazy as investors ran for the hills. The Fed is now expected to cut rates during the month of September with an 80% chance being priced in by the markets right now and by the slew of DMs and comments we've received. People are freaking out about what's going on in the markets and we're here to break it down for you.
- [02:26]
Austin Hankwitz
So as you all know, we love sharing our personal strategies and ideas when it comes to building wealth. Robert and I have amassed millions over the last couple years and it was not, not by accident. So we're going to share with you all a couple tips here. Three specifically as how we approach overcoming our own emotions during market volatility. So Robert, before we share our strategies though, I want to walk down memory lane. Facts are our friends and they help us navigate the future. Now of course, historical data and averages aren't always going to predict the future, but they can certainly help us navigate what could be around the corner. So I want you guys to truly understand the facts I'm about to lay out for you. The S&P 500, the sells off 3% or more every one and a half to two months on average. Every two months or so you get a 3 to 4 or 5% sell off in the S&P 500. Now sell offs of 5, 6, 7, 8%. Right. That happens every three to four months on average with the last one occurring in April. And we very well could be approaching one as we speak. But regardless of that being the situation, I think it's really important for people understand this is par for the course. Having a 3, 4, 5, 6, 7% corrections in the index funds in ETFs we have as the base of our financial portfolios is normal. If investing was easy, everyone would be successful. And we wouldn't have people like Warren Buffett amassing billions of dollars over their life because they figured out how to perfect it. So Robert, why don't you just dig in a little bit more for me?
- [03:55]
Robert Kroke
Yeah, I want to take a moment and make sure everyone understands what Austin just shared. Market wide sell offs of 5% or more happen every three to four. So it should be no surprise. There should be no shock, there should be no awe or fear or none of that. So when your portfolio sells off by 5, 7, 10% twice a year, there's no historical reason to panic or run for the hills. This is par for the course. If markets only went up into the right, everyone would be rich and what would you need us for? But our reality is they don't. Humans are emotional creatures. We. But today that all changes. So Austin, let's dig into our first strategy so we can break all this down for everyone and we can get everyone to USA a little bit and really just go with the flow and understand that volatility is part of the game of building wealth.
- [04:47]
Austin Hankwitz
100%. So the first strategy that really helped me invest toward my future during times of volatility was understanding I could only control the controllables. Right? We can't control the performance of the stock market. But we can control our monthly budget, how much we decide to invest on a weekly or monthly basis, where we invest our money and our long term plans for our retirement. So here's a great example. During the year of 2022, we experienced a bear market. The S&P 500 and the NASDAQ 100 sold off by 30, 35, 38% or so. It was a bloodbath. Now that's nearly a 40% decline in the indices, not to mention names like Netflix, Shopify and Meta selling off by 60, 70, 80%. Right. Single stocks in people's portfolios were selling off by more than 50% regularly. So when we're faced with prolonged volatility or even volatility in nature and general underperformance in our portfolios, it's important not to focus on those percentage gains or losses or the ups and downs and in circles, but instead focus on what you can control. How much are you investing on a weekly or monthly basis? I can't control the stock market's performance in the short term, but I can control how much I invest in the short term. And tracking that performance and investing is super important because if you don't track it, it didn't really happen. Right. For example, you can say to yourself, let's go, I just invested $500 this month. That's $45 more than I did last month. I'm doing a great job. Or I invested in my Roth IRA this year. I didn't do that last year. I'm doing a great job. I increased my 4th 401k contribution up to the match this year. Or you know, recently, like I'm doing better now than I was before. Despite what other market volatility could be going on behind the scenes, being able to see that progress and what you can control as an investor is incredibly important. We always talk about volatility is going to be here. And understanding that therefore dollar cost averaging is the solution to that is key.
- [06:48]
Robert Kroke
And it's not just investing more and tracking your progress, but it's investing in the right things. Austin and I are big believers in index funds and ETFs, and historically speaking, these types of investments have delivered 10 to 12% total returns over the last several decades. And no matter if you're buying during times of volatility like in 2022 or at all time highs like we're seeing right now, it's always a wonderful idea to be a net buyer of assets. We talk about this all the time and it's just so important for everyone to follow along and really understand these points and these strateg strategies as you move forward in your wealth building journey. And that leads us into number two today. Be careful when owning high beta stocks. There's two types of stocks, high beta and low beta. You might be asking yourself, what's beta? Well, beta can be defined as how much a stock underperforms or overperforms their benchmark index, like the Nasdaq or the S&P 500, for example. Low beta are traditionally utility companies and healthcare companies, very stable and predictable. Whereas a high beta stock is usually a technology company or a biotech company who are usually unprofitable but growing like a weed. And very speculative. High beta stocks, as you can imagine, move up or down way more than their benchmark index. During times of volatility. The NASDAQ may decline by 1% while these high beta stocks would decline the same day by 4 or 5%. Those are some dramatic swings in your portfolio. So if you find yourself as someone who has a lot of those in your portfolio and you're freaking out about volatility, maybe you need to reassess your risk tolerance or change your holdings to realign with your existing risk tolerance.
- [08:37]
Austin Hankwitz
If you are someone though that wants to own those high beta stocks. Because historically speaking, right when you choose the right ones, like Palantir, you can dramatically outperform the markets. You need to be prepared. So if you want to do those things, have at it. Just make sure you're going into that with an understanding of what could happen. You should not have to be in a situation where you're losing your mind when your investment goes down by 20, 30, 40% in a couple of weeks and be surprised by it. That shouldn't be surprising if you are owning these high beta stocks. These high beta stocks are volatile in nature and usually not something that I hold on too much. In my own portfolio, I've got a bucketed category. It's like my high risk bucket. Specifically it's called long risky. It's these risky names that I'm invested for for the long term. And it makes up about 20% of my own portfolio. So it's not like this is my entire portfolio, these names that go up and down by 30% in a week. Palantir is a great example. Right? Robert's talked about this one for years. Fun fact, Palantir has sold off 20% or more by four times since their IPO. Those 20% sell offs are normal for high beta stocks and would be considered a Bear market and red flashing lights for the indices and ETFs we talk about. So by understanding the difference of like expectations, right, Laying out expectations with your investments, ask yourself, am I investing into a high beta stock or a high, you know, risky stock or risky investment? If yes, then I need to expect volatility. And if I'm not accustomed to or I'm not expecting that, you know, if that's not normal for me, then one, I need to just take a step back and not own that stuff because it makes me freak out. Or two, maybe I need to carve out a small portion of my portfolio to be exposed to that volatility. Because again, when the indices move up by more than 1% in a single day, that's a big move, right? The S and P, right now I'm looking at, it's up only about 73 basis points. So not even three quarters of a percent. That's a pretty big move in a single day for the S and P. We're on the flip side. If we see a Palantir or a Shopify or one of these high beta stocks up by, you know, 73 basis points, whatever, we'd say, oh well, that's not, didn't really do much today, right? When it goes up by 4, 5, 6, 7%, that's what we are accustomed to. So just understand your expectations for your investments. And if you are doing this high beta, high risk investing, do it with a small portion of your portfolio after you've built your base. And do not run for the hills when you experience a 20, 30, 40% correction in a week or a month or a quarter. Because that is normal, right? That's not normal for the S and P. If we saw 40% correction in the S and P, things are bad.
- [11:11]
Robert Kroke
Well, to click back on paler, just for a moment. For the people that didn't have a knee jerk reaction and they did not sell during Those times of 20% pullbacks since the IPO, they would have enjoyed a 27x on their money just by staying the course in that stock in that sector and by believing in their long term investing thesis. That's what we're trying to achieve here today is to get everyone to understand things happen, volatility happens. But if you understand what you're investing in and you have a long term thesis, all the money is staying steadfast. That is where you build the wealth and that is how you win in these markets.
- [11:51]
Austin Hankwitz
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- [12:34]
Robert Kroke
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- [12:55]
Austin Hankwitz
Podcast Description so our third strategy that we personally follow when handling and overcoming this emotional burden of volatility is focusing on the fundamentals. The only reason we invest in stocks is because we understand them, we believe in the companies and we have a hunch as to where they're headed. Sometimes their stock prices get completely disconnected from the underlying fundamentals of the business. Revenue growth, margins, profits, future investments back into the business. And by following the day to day stock price instead of zooming out and focusing on quarterly and annual progress of those fundamentals. How has revenue trended? What are their margins? How is that cash flow and profits? Right? Focusing on the long term fundamentals and not the short term day to day stock price movement is how we will be able to stay steadfast, stay invested and focus for the long term really helps you build that volatility muscle that all of us have to eventually build if we ever want to be successful investors.
- [13:54]
Robert Kroke
And we've been saying for a very, very long time, when in doubt, zoom out. And that's never been more effective than during times of volatility. Like recently. Every day in my DMs and in the Rich Habits network, people see a headline, the stock drops 10% or more and they want to run for the hills out of fear when they should instead focus on the 3 to 5 year growth of the sector and their long term vision of the management team of that company. We're all going to make mistakes, but you'll never become a successful investor unless you can zoom out from the day to day price action of the stocks and ETFs and focus on your own long term retirement planning.
- [14:34]
Austin Hankwitz
So remember, the three most important strategies for overcoming that emotional burden that happens whenever we see volatility in the markets include controlling the controllables. I'm investing more this month than I did last month, more this year than I did last year. No matter what the markets are doing, I'm doing better myself. I'm controlling what I can control. I'm careful about the number of high beta stocks that are in my portfolio because I know high beta means high risk and those names go up, down, left and right by 20, 30, 40% sometimes. And that if that's not for me, I need to make a change. And then finally I'm focusing on the long term fundamentals of these businesses. How did Meta or Microsoft or Amazon or these different companies, how did they perform? Are their revenues growing? Are their profits growing? What is happening in this business? Even when their stock price might not be doing that great, how is the underlying business doing? Those are the three best strategies that have helped us amass millions of dollars of wealth over the last several years. And I'm sure if you all are able to really understand them, hone in on them, they will help you over the coming decades as well.
- [15:39]
Robert Kroke
I really enjoyed filming this episode because we see it every day in the Rich Habits Network. I see it on Instagram, TikTok the messages. Anytime there's this clickbaity headline or the markets decline or there's a presidential tantrum, I feel like just people automatically get fearful and then they start to panic. And if episode can change that for many, many people out there, then we've done good. Because I just find that in my history of doing this for 30 some years that the more you stay steadfast and you stick to the plan, the better off you're going to be and the higher your returns are year over year because you're not getting in and out with every fearful headline and you're not really concerned with the day to day price action. So I think that's why this is such an integral episode. Getting people to really understand that at all levels mindset and being able to control your emotions is key to leading a successful life as an investor.
- [16:41]
Austin Hankwitz
I couldn't agree more. I'm so grateful that we have people that listen to some of these strategies that have worked for us and we're able to provide these strategies for everyone and share with them what has helped us get through times of volatility. And has allowed us to really train up that volatility muscle. Now, with that being said, Quick Shout out to NEOS Investments if you guys aren't aware, NEOS offers ETFs that seek high levels of monthly income with a keen focus on tax efficiency while providing core portfolio exposure across equities, fixed income, real estate, cryptocurrency, and cash alternatives like t bills. Their ETFs may be especially interesting for investors looking to generate tax efficient monthly income inside of their investment portfolios. Their funds also may serve as a compelling income focused alternative or complement, like in my own instance, to many of the investments already in your portfolios. Now Robert, quick shout out here. I gotta tell you guys, I'm making $835 a month is my passive income that NEOS funds are paying me. I've got spyi, qqqi and btci. I've got about 20ish thousand dollars in each of those and I'm making almost a thousand dollars a month in passive income. It's insane.
- [17:48]
Robert Kroke
So same here. And if you're looking to add passive income focused ETFs to your portfolio, consider learning more about NEOs ETFs@neosfunds.com and as with all investments, investors should carefully consider their investment objectives, risks, charges and expenses of NEOS exchange traded funds before investing. To obtain a prospectus containing this and other important information, please visit neosfunds.com Please read the prospectus carefully before you invest. An Investment in NEOs ETFs involves risk, including possible loss of principal. There is no guarantee that NEOs ETFs will make monthly distributions, and the months may fluctuate from month to month. Cryptocurrency is relatively new to the market and has its own specific risks. NEOS Investments are distributed by Foresight Fund Services, llc.
- [18:37]
Austin Hankwitz
So with that being said, let's now jump into the Q and A section of this episode. As a reminder, you can ask us any question you'd like, just DM us at Rich Habits podcast on Instagram or email us@rich habitspodcastmail.com and we've actually got a couple here. We've got one email and two DMS. So we're trying to trying to keep it scattered about, not trying to neglect anybody here. So our first question is from James R. James says, hey guys, I've been a huge fan for the last two years and I've done my best to incorporate the habits and lessons you've bestowed on the community. Last year, my wife and I were both laid off in July. Lots of financial details in between. But 13 months later I finally been offered a position that includes a base salary, a commission and a car allowance. My car is a Mazda CX5. It's 10 years old with 140,000 miles on it and it needs some work work. The air conditioning doesn't really work when it's over 95 degrees and I live in Texas so I got a few more months of that. I'll probably need new brakes and tires before the year is over as I'll be putting quite a few miles on this car driving through my designated territory. That said, I will be receiving a car allowance of $750 a month. I'm tempted to use that money to purchase a used truck or SUV with lower miles as I'm in sales in the heavy equipment industry and I'm driving a lot. I've looked at leases, however I'm unsure of the wear and tear I might put on and not to mention higher than average miles could be since I don't think a lease is a good idea right now but would love yalls perspective regardless. So here's my question. Should I try and ride it out on my Mazda as long as possible and use the car allowance to pay down my consumer debt or should I take advantage of it, trade in my used car as a down payment and purchase a designated work vehicle? Then when my commissions begin to come in, I can pay lump sums to my consumer debt and invest with my commission money. I see myself at this company for a few more years. Thanks again. Good question from James here. Robert, what's your take on this? I want a lot. Where's my car allowance? Robert?
- [20:29]
Robert Kroke
Yeah, my take is get the new vehicle, you've got a new job, you want to make a great impression. You don't want to be worrying about breaking down in the middle of the Texas heat. You don't want to be worrying about pulling up to an important client meeting and you're running late because the car overheated because it's got a million miles on it. I would say take the car allowance, get the new vehicle, trade in the one that's having its issues, really get off on the right foot in this new position. Impress the company, really crush it. But then as soon as you start to see those commissions, soon as you start making the big bucks, lunk it down, get the consumer debt paid off, get yourself back on track and get moving on the Roth IRA and the bridge account. I think you're spot on because yeah, could you piecemeal together Some repairs on the Mazda, maybe make it another year and pay down some debt. But the problem is that year is going to be wrought with stress, probably some breakdowns. You're going to have to have a couple shirts in the car because if the air is not working consistently, you're going to be really, really hot. So that's what I would do. I know it's probably not the best move, but I think it's the best move for your current situation so you get off on the right foot with this new career.
- [21:44]
Austin Hankwitz
Robert, this is a tough one. Half of me wants to agree with you. The other half of me is like, what are you thinking? Because on one side of the equation he's got this car that's worth probably 6, 7, $8,000, right? That's what Google's telling me. So to his point, he could put down 6, 7 8,000 dol and then use this car allowance of 750 and borrow maybe let's say $20,000. Now he's got a $25,000 car that's a lot more reliable and it's got air conditioning and he doesn't have to change his shirt because he's a smelly person. A lot of things could be better here, right? On the flip side, I heard consumer debt and when I hear consumer debt, I immediately think of credit card debt. I would much rather see this person drive their totally capable car for the next 4, 5, 6, 7, 8, 9, 10, 12 months. Use that $750 a month for the next 12 months, $9,000 to pay off existing credit card debt. And then in 2020, let's call it halfway through 2026 or into 2027, then begin to think about, okay, what's my car situation looking like? Because sure, this person might not have credit card debt, maybe it's student loans, maybe it's a personal loan, right? If it's not high interest debt, completely disregard what I'm saying. But if you're paying 25, 30, 35% interest on credit cards or payday loans, whatever consumer debt that exists out there, James, I really think you should focus on getting rid of that versus I'm going to go into more debt so I can have a better car. Delayed gratification is sort of my mindset on that one. But if that's not the case, and maybe you've got some student loans, maybe you've got a couple medical bills or whatever's hanging around here, that's 4, 5, 6, 7% interest rate, then yeah, I mean, use this as a $6,000 down payment on a new car. Don't, don't use all 750amonth. Maybe you can figure out how to borrow again, 15 or 20,000, which is probably four or $500 a month of that payment. Take the other two or 250, maybe start investing that. Maybe use that for the credit card debt. There's a lot of different ways to skin this cat, but the way I don't want to think about it is just to go gung ho into a lease. Get rid of your car, all the money's gone, and now you're driving a brand new BMW. Don't do that. That's not the situation you're in right now.
- [23:48]
Robert Kroke
James, my only clickback to your response, and I love it, and I agree with it somewhat, is in this particular situation, he mentions high mileage. He's going to be driving a lot in his territory. So if it was a normal situation where someone works at a bank and they're driving eight miles each way, you know, in a normal state like Ohio or somewhere where it's not blazing hot all the time, then I would agree with you. But because of extreme heat in Texas, long hours of driving and high miles, I don't know, it's just a tough, tough scenario. And like you said, either way works. It's all going to be down to personal preference. I'm just one of those people that have always felt that having a higher car expense is worth it for me because I hate having to deal with car servicing and breakdowns and being on the side of the road or any of that stuff. So that's my takeaway. And that's why this always works so well, because we have two different perspectives on everything.
- [24:47]
Austin Hankwitz
I mean, crazy though. I mean, I've. I've owned cars that had 120, 140,000 miles on an SUV in high school that had 140,000 miles on it. I had a 4Runner in college that had 212,000 miles on it. My dad's car's got 190, 200,000 miles on it. I don't know what these breakdowns and services everyone's all afraid of. I've never been broken down on the side of the road. These are all cars that are. Yes, they're all Toyotas. So maybe that has something to do with it, but like, I've just never had that experience with a used car. When it comes to maybe the Mazdas, you could totally be right. Right. This could be a recipe for disaster. And he's going to be late to a meeting because his car broke down. But on the flip side, like, does that happen? Is that really a thing? Like, I don't know. We'll see. But I hope that we gave James a little bit of color, a little bit of perspective here as it relates to his situation. And James, thank you so much for listening to the show. We are wishing you the best. Our next question comes from an anonymous listener. We always respect people's privacy, so we will not be disclosing their name. But with that being said, the question is based on the situation three to five years, how much should I keep in an emergency fund? How much should I save for home renovations and how much should I be investing every month? I set aside 1,000 to $1,200 into my emergency fund and my home renovations bucket. But I'm not sure if I'm over indexing on the savings and these different buckets or if I should just be investing more in the stock market, NASDAQ S&P100, things like that. My spouse and I make enough to cover both of us. So in a true emergency, being unemployed for six to 12 months, we should be fine. But I'm a lot less risk adverse than her. So I'm looking to optimize my return in the current market environment. So what are you guys thoughts on my situation? Robert? I'll kick this one off. So our anonymous listener here is essentially saying every month I'm setting aside a thousand in my emergency fund. A thousand for home renovations and whatever else gets invested. That's a great strategy assuming your emergency fund is underfunded and you need to beef it up to that three to six months of expenses once it hits those, call it 30,000 is what's in my emergency fund. Once I've got 30,000, I don't keep adding to it, right? I don't need to keep adding to it. It's fully funded. I'm good. So then that money now goes back into investing. Now the home renovations, that's something called a sinking fund. And so a sinking fund can be defined as a future expense that you are saving for that you know is going to happen and you want to save for every single month, like a little savings bucket, a little piggy bank. You know that Christmas happens December 25th of every year. So I'm save 100 bucks a month. So I have $1,200 come Christmas or I know I want to do a home renovation that's going to cost me $10,000. So I'm going to set aside a TH000amonth for 10 months so I can do that $10,000 home renovation when I have that saved up. You are doing a sinking fund for that. Make sure that you're not just aimlessly saving money places because that's when people find themselves with too much cash. Again. We want to have about three to six months of expenses and a high yield Savings account on public.com Public cash account is what it's called. 4.1% APY is what you can earn over there. And then normal checking account one to two months worth of expenses is what I keep in mind. Call it, you know, five, six, $7,000. Maybe you keep more, maybe keep a little bit less. But regardless, you're not someone that's sitting on 80, 90, $100,000 of cash that could have been invested in the markets earning a lot more than this. 4% on public.
- [28:09]
Robert Kroke
The only thing I would add to this is just always make sure you're considering building the base because I hear emergency fund, which is great. I hear home renovation fund, but I don't hear future fund. What am I doing for to set myself up and build the base? I would love to see your base built for you and your spouse to that hundred thousand dollars saved and invested before you do anything else with renovating the home. That's the only thing I would add because I feel like you guys are on the right track and you're doing the right things. But you also have to make sure that you have that money set aside for the future that is growing through that Roth IRA and your bridge account account for the long term.
- [28:48]
Austin Hankwitz
So our last question comes from Brady on Instagram. Brady says, hey Austin and Robert, thank you for the content you guys post over here. It has helped me change my mindset on building wealth. That's a quick reminder for everyone if you're not yet following Rich Habits Instagram account. At Rich Habits podcast we publish some cool clips, some cool little tidbits, some stories, some behind the scenes stuff. Go follow us over there. 34,000 people already do and we're super grateful for it. Now Brady's question is this. I'm currently driving a 2008 Toyota Tacoma. It's paid off with 260,000 miles on it. Starting to show some age. Yeah, I bet it is. Brady says he's looking for a similar sized truck. I have 10 to 12,000 of savings for my next vehicle, but I'm not sure if I should just ride out the current truck till the wheels Fall off, lease a new truck or buy a new truck outright. Thanks in advance, Robert. I know you're driving a used truck for fun. Talk about why it's important to keep around these reliable trucks. And I'm sure Brady could appreciate your specific truck because he seems like a truck guy and any advice you have for Brady.
- [29:51]
Robert Kroke
Yeah, I think you should ride it until the wheels fall off because at this point, with 260,000 miles and it's a Toyota, you could probably get another hundred thousand out of it pretty safely. And I like the situation. Unless you're doing a ton of hauling or you're doing a ton of miles on it all the time. But right now, my work truck is a 1999 Silverado with 180,000 miles on on it. And I love it because I might spend $500 a year on maintenance. But I'll tell you what, it tows just as well as any new truck. It's been paid for for 16 years. I think it's been paid for. So I'm a big fan of older trucks in a normal situation. We had a question earlier in the episode where he does a ton of high miles going to client meetings. But if it's just a work truck and you need something, something to get around in and haul and do things, I think you should ride it to the wheels fall off. But you already have 10 to 12,000 saved for the truck. That's awesome. I hope it's invested. But I like the mindset shift of setting aside whatever that budget would be. So let's say you drive the current truck for another 6, 812 months, maybe longer. Start socking away more money in a high yield savings account because then that way you're putting aside more money for that truck down the road and you may not even need it because. Because you could possibly look at a lease where you put no money down and invest all that money or buy a used truck for that 10, 15, $20,000 and have no payment at all.
- [31:23]
Austin Hankwitz
I'm right there with you. I think that our friend Brady here needs to hang on to that truck if he's already got 260,000 miles on it. I don't know who's buying a 260,000 mile truck. Right. So it's worth whatever it's worth to you. If I were in your shoes, I just keep driving it until I say, you know what, I've got my hen 2012, maybe 15 or $20,000 saved now because you took Robert's advice and you're socking away 3, 4, 500 bucks a month into a high yield savings account for a new truck down the line. But here's what I wouldn't do. I don't think I would go into a lot of debt to go upgrade the truck, right? You seem like a simple person. You enjoy a 20 year old truck. I really believe that if you can handle a 20 year old truck, you can probably handle a 10 year old truck. And you can buy a pretty nice 10 year old old Tacoma for $20,000 or less. And so if I were in your shoes, I'd rock and roll for another 12, 18, 24 months, maybe save up that 10 to 12 to 15 or 20. And then when you really are ready to upgrade, you use the money to buy it in cash. You do not go into high interest debt as auto loans tend to be right now with the used vehicles. And you're setting yourself up for success. But the most important thing to remember here is that the monthly payment that you're saving by not going into this debt needs to be invested. So if you are someone who's like, listen, I paid cash for this truck and I'm excited about it, I could do a lease for 650. That means the 650 you were going to pay, you need to invest that right? 15, 20, 25% of that monthly take home pay needs to get invested. Brady, you're doing a great job. We're super proud of you and best of luck with the truck. 260000 miles is legit. With that being said everyone, thank you so much for joining us on this week's episode of the Rich Habits podcast. Do not forget, control your controllables, focus on the fundamentals and be careful with those high beta stocks. That is how you do not have knee jerk reactions and you have the right expectations going into investing for the long term. We now have over 200,000 of you that are subscribed to our Spotify and come back all the time and listen to our show. We are super, super grateful. If you've not yet followed us on Spotify, maybe someone sent you this episode or you're just tuning in for the first time. Please consider giving us a follow if you appreciate it or learned something from this episode. Please consider leaving us a five star review. And the absolute, absolute best way that you could reward us for these episodes is just sharing them with your friends, your family, your co workers. Share the episode. We want to get the Rich Habits podcast in everybody's ears and I think this is a pretty good episode. As it relates to market timing. So please consider sharing these episodes with your friends.
- [33:49]
Robert Kroke
Yeah, we all know that person that needs help financially. They're living beyond their means. They're complaining about volatility in the markets or high cost of living. These episodes are from Free. Share it with them. Maybe you'll change their lives and you'll also help us continue to grow and get the Rich Habits Network and Rich Habits Podcast word out to new people. Because we all have those family members and friends that need a little nudge in the right direction. But we appreciate all of you that come by each and every week and we're so grateful.
- [34:21]
Austin Hankwitz
Thanks everyone and have a great start to your week.