Rich Habits Podcast — Episode 136: The Easiest $678K You’ll Ever Make

Hosts: Austin Hankwitz & Robert Croak
Date: September 22, 2025

Episode Overview

In this engaging and action-packed episode, Austin and Robert focus on a commonly overlooked drain on personal wealth: recurring subscriptions. They reveal how seemingly harmless small charges add up to significant losses—both in monthly leakage and in missed opportunities for investment growth. By walking listeners through a three-step subscription audit, they demonstrate how reclaiming an average of $194 per month and investing it could grow to over $678,000 in 30 years. They also field listener questions covering retirement strategy, investing for risk-averse parents, and the classic rent vs. buy housing dilemma.

Key Discussion Points & Insights

1. Subscriptions: The Hidden Wealth Drain

• Americans are losing hundreds to thousands per year on unused or forgotten subscriptions.

• Psychology at play: Businesses leverage behavioral economics to make it harder for you to cancel (e.g., charm pricing, psychological ownership).

  “The average American has five to six paid subscriptions that they aren’t even aware of. That’s where your retirement savings are leaking out $9.99 at a time.”
  — Robert Croak [01:39]

2. The Data on Subscriptions

• Massive growth: Subscription economy has increased 435% in the last decade ([03:34]).

• Everything as a service: From car features to meditation apps— “BMW tried to charge a subscription for heated seats.”
  — Austin Hankwitz [03:34]

• Psychological ownership (the endowment effect): Unsubscribing feels like losing a personal possession.

• Breakage: Companies profit from users who pay but don’t use (e.g., gyms banking on the majority never showing up).

  “Once benefiting from a subscription becomes part of your routine... your brain treats losing it via unsubscribing like an actual loss.”
  — Robert Croak [03:55]

3. Pricing Psychology Tricks

• Charm pricing: Why $9.99 feels cheaper than $10, invented in the 1880s and still effective.

• Real-world impact: $9.99/month × 10 subscriptions = $1,200/year → if invested, significant long-term returns.

  “Contrary to what some financial influencers say, little leaks do actually sink ships.”
  — Robert Croak [05:58]

4. How to Audit Your Subscriptions: 3-Step Blueprint

Step 1: Discovery Phase

[07:01]

• Pull last three months of statements to catch all (monthly, quarterly, annual) charges.
• Make a spreadsheet: Service name, monthly cost, last usage, value rating (1–10).
• Pro tip: Search email for “subscription renewal” or “autopay” receipts to catch hidden payments.

“You will be shocked what you end up finding, especially if it’s on PayPal or maybe you’re paying through a cash app.”
— Austin Hankwitz [07:43]

Step 2: Ruthless Evaluation

[08:40]

• Dollar per use: Monthly cost ÷ actual uses.
• If unused for 60 days: cancel immediately—no exceptions.
• For essentials: Consider sharing with family/friends to split costs.

“If you haven’t used it in 60 days, it goes into the cancel immediately pile. No exceptions.”
— Robert Croak [09:15]

Step 3: Optimization Strategy

[09:58]

• Negotiate: Call and say, “I’m thinking about canceling,” — works for cable, insurance, big-ticket subscriptions.
• Seek annual pay discounts (10–20%), but only on things you actually use for a year.
• Key: Invest reclaimed money.

“Seventy percent of the time they’re going to offer you a discount to stay because they know their customer acquisition cost is way higher than keeping you.”
— Austin Hankwitz [10:28]

5. The True Long-Term Cost of Subscription Creep

• Average monthly untracked subscription spend:

  • People think they spend $79/month, but actually spend $273/month ([13:48]).

• Investing that difference ($194/month):

  • Over 30 years at 12% returns = $678,000.

• The main lesson: “Little leaks do sink ships”—redirecting even small sums leads to big outcomes due to compounding.

  “The $194 a month, if you invested that into the S&P 500… you would have over $678,000, hence the title of our episode.”
  — Austin Hankwitz [14:23]

6. Mindset Shift: It’s Not Just Lattes

• Debunking the myth that only “big” expenses matter—small recurring charges add up more than “skipping avocado toast.”

• Practice intentional spending and regular audits.

  "Building wealth isn’t just about making money. It’s about keeping more of the money you make for yourself."
  — Robert Croak [16:51]

7. Actionable Playbook: What To Do With Money Saved

1. Open a Roth IRA on any brokerage (they recommend public.com for simplicity).
2. Deposit the savings (e.g., $194/month) automatically.
3. Invest in broad index funds like VOO (S&P 500) and QQQ (Nasdaq 100).
4. Stay consistent: Let compounding work for you.

“It all starts with small steps, Robert: just taking the small steps, finding the margin in your budget and then using that to not go, ‘Oh, I now can afford a new pair of shoes...’ No, you are using this money to build wealth.”
— Austin Hankwitz [18:21]

Listener Q&A Highlights

KW (Early 50s, Strong Savings, Heavy in Cash):

• Situation: Paid-off house, 401k & SEP IRA, large cash/CD holdings.

• Advice: Move away from “risk off”—reduce cash in CDs/high-yield savings (keep enough for 3–4 months expenses only). Allocate more aggressively into ETFs, stocks, maybe some crypto or precious metals.

  “You don’t want to be sitting on the sidelines. So heavy in cash through the High Yield Savings and the CD.”
  — Robert Croak [22:41]

Ogie (Parents Are Risk-Averse, Both Age 60):

• Situation: War refugees, low risk tolerance, large emergency fund, several 401ks.

• Advice: Encourage gentle exposure to bonds and treasury ETFs (CSHI, BNDI), and cash-flowing options. Educate by showing long-term S&P returns and the safety of diversification. But ultimately—respect their risk tolerance and autonomy.

  “You can lead a horse to water, you can’t make it drink… Give them the tools and resources, educate them, but you can’t force them to do anything.”
  — Austin Hankwitz [27:46]

  "Be tolerant, be patient, educate them and I’m sure you’ll make a big difference for their future."
  — Robert Croak [28:22]

Jared K (30s, Renting, Considering Buying):

• Situation: Strong income, ~200k+ net worth, saving for a home but unsure whether to rent or buy.

• Advice: Explore house hacking—a duplex/triplex using Fannie Mae 5% down, live in one unit, rent others to keep net housing cost low. But: Don’t be “house poor”—be sure to understand total cost of ownership and don’t forsake investing for illiquid real estate.

  “Make sure you totally understand the total ownership cost, not just the mortgage and the insurance..."
  — Robert Croak [34:11]

Notable Quotes & Memorable Moments

• “Little leaks do actually sink ships.” — Robert Croak [05:58]
• “Charm pricing… has been around since the 1880s… items priced at $39 actually sold better than $34, even though they’re more expensive!” — Austin Hankwitz [05:23]
• “Death by a thousand cuts is still death.” — Robert Croak [15:24]
• “It’s not about giving up your Netflix or your Spotify—if you love it, keep it. But be intentional.” — Robert Croak [15:54]
• “Small action turns into big, big outcomes—specifically $678,000 of an outcome I love.” — Austin Hankwitz [16:16]
• “Don’t listen to the fake gurus... Small investments consistently can build wealth.” — Robert Croak [18:57]

Timestamps for Key Segments

• [01:39] — Subscription drain: The hidden monthly cost
• [03:34] — Growth of the subscription economy
• [05:23] — Psychology of charm pricing
• [06:55]/[08:40]/[09:58] — Step-by-step subscription audit
• [13:48] — Average subscription spend and the real cost
• [14:23] — Investing canceled subscriptions: Path to $678k
• [16:51] — Mindset shift and intentional spending
• [18:21] — Investing the money saved: The actionable playbook
• Listener Questions/Q&A: [20:38] — KW | [25:40] — Ogie | [30:50] — Jared K

Conclusion & Takeaways

• Audit your subscriptions—reclaim dollars leaking out monthly.
• Automate investing the savings—compound wealth over decades.
• Be intentional, not restrictive: Keep what brings you value, drop what doesn’t.
• Take action—just an hour of work today could add hundreds of thousands to your retirement.

Final Word:
“Building wealth isn’t just about big investments; it’s also about plugging small leaks. Audit those subscriptions, deploy the savings, and let compounding work its magic.”
— Rich Habits Podcast, Episode 136