Episode Overview

Podcast: Rich Habits Podcast
Episode: #152 – "The 3 Mindset Traps Keeping You Broke in 2026"
Hosts: Austin Hankwitz & Robert Croak
Date: January 12, 2026

This episode focuses on identifying and overcoming three major mindset traps that prevent people from achieving financial success. Austin and Robert break down why these pervasive beliefs sabotage wealth, how even high earners fall victim to them, and provide actionable mental models to rewire your money mindset for 2026. Through stats, personal anecdotes, and a lively listener Q&A, the hosts aim to help listeners build habits—and a mindset—that align with true long-term wealth.

Main Discussion & Key Insights

[00:23] Introduction: The Real Barriers to Wealth

• Purpose: To go beyond surface-level savings tips and dig into the deep beliefs that keep people broke—even those with high incomes.
• 78% of Americans live paycheck-to-paycheck, a number that includes many making over $100K.
  Robert Croak: “These aren’t your typical stop buying Starbucks tips. These are deep rooted beliefs that most people don’t even realize they have.” [01:12]

[02:22] Mindset Trap #1: "I'm Just Bad with Money"

• The Belief: Viewing financial skills as innate rather than learned (“I’m just bad with money”).
• The Consequences: Triggers a fixed mindset, leading to avoidance (e.g., handing off finances to others, ignoring bank statements).
• Key Quote:
  Austin: “No one is born good with money. Warren Buffett wasn’t just understanding compound interest. He had to go learn it.” [02:38]
• Actionable Shift: Move to a growth mindset — tell yourself “I’m learning money,” present tense and ongoing.
• Learning Tip:
  Robert: “Teaching others forces you to actually understand it yourself and put it into action.” [03:51]

[04:12] Mindset Trap #2: "A Good Job Will Fix All My Money Problems" (a.k.a. The Good Job Fallacy)

• The Belief: Higher income automatically equals financial security.

• The Reality: Many high-earners still live paycheck-to-paycheck.

• Striking Stat:
  Robert: “About 41% of American workers earning between $300,000 and $500,000 are living paycheck to paycheck. Over 40% of those making over $500,000 say they’re also living paycheck to paycheck, according to a new report from Goldman Sachs.” [05:10]

• Risk: Complacency leads to overspending, cancelled budgets, lack of savings/investment, and vulnerability to layoffs or economic downturns.

• Vivid Example: Tech layoffs and AI disruption — even top-tier jobs are at risk.
  “Amazon laid off 14,000 white collar employees. Right, 14,000 employees.” [06:32]

• Actionable Shift: Treat your job as a tool to seed wealth-building—salary is for investing in assets, not for increasing lifestyle.

  Robert: “Think of your salary as seed money. Every paycheck you should be planting seeds. Investments, side businesses, skills, assets. The goal isn’t to make more money to spend more money. The goal is to make more money to buy more assets and be a net buyer of assets in general to set yourself up for the future.” [07:03–08:04]

[09:17] Mindset Trap #3: "I Need to Look Successful to Be Successful"

• The Belief: You must display wealth to create it. (Keeping up with the Joneses: fancy cars, designer clothes, luxury apartments).
• The Cost:
  Robert: “The average American has $6,500 in credit card debt. And ... 59% of Americans admit they live above their means trying to keep up with appearances.” [09:38]
• Research Insight:
  Austin: “Thomas Stanley studied real self-made millionaires for his book the Millionaire Next Door ... They drove practical cars. They lived in modest homes. ... They appeared very much middle class because they prioritize building wealth over looking wealthy.” [10:41]
• Key Reframe:
  Robert: “Rich is loud and wealth whispers. The goal is not to look rich. The goal is to actually be rich.” [11:12]
• Personal Story:
  Austin: “I got the new job out of college ... I went and bought a Lexus ... I could no longer afford to contribute to my Roth IRA at 23 years old. That is ludicrous.” [12:39]
• Takeaway: Stop spending to impress, shift energy to real wealth building.

[13:36] The Wealth Whisper Test

• Practical Observation:
  Robert: “Drive through a middle class neighborhood or go to an event in a middle class area ... go to a really wealthy neighborhood. You will see the middle class cars in the driveway are way nicer than the really wealthy neighborhoods because the wealthy people understand money and the freedom that it provides.” [13:36]

[14:35] Summary: From Poverty Mindsets to Growth Mindsets

• The 3 mindset traps are all poverty mindsets—they create stress and keep you financially stuck.

• Replace with these growth mindsets:

  • “I’m learning money.”
  • “Income is a tool—plant seeds.”
  • “Wealth whispers; rich is loud.”

• Austin: “With consistency, your financial life will inevitably transform.” [15:19]

• New Year's Challenge: For the next 30 days, consciously replace your main mindset trap.

  Robert: “You’re not broke because of the economy, your job, or your circumstances. You’re broke because of what you believe about money and your relationship with money. And if you can change your beliefs, you can definitely change your bank account.” [15:46]

Notable Quotes & Memorable Moments

• “No one is born good with money. Warren Buffett wasn’t just understanding compound interest. He had to go learn it.” – Austin [02:38]
• “About 41% of American workers earning between $300,000 and $500,000 are living paycheck to paycheck. ... Over 40% of those making over $500,000 ... according to ... Goldman Sachs.” – Robert [05:10]
• “Rich is loud and wealth whispers. The goal is not to look rich. The goal is to actually be rich. And every dollar you spend trying to look rich is a dollar that can’t make you actually rich.” – Robert [11:12]
• “If you can change your beliefs, you can change your bank account.” – Robert [15:46]
• “The two best performing portfolios are those of people that forgot their password and those of dead people, because they’re not trying to time the market.” – Robert [34:03]

Q&A Highlights

[18:38] Q1: Should I Take On Debt for a Nurse Practitioner Degree? (Madison)

• Madison, 24, nurse making $100k, considering $110k loan for NP degree (would boost to $140k salary).
• Both hosts strongly approve, given her strong financial base.
  • Robert: “As long as the base can ride and keep growing and she takes out these loans, I think it’s a tremendous way to do it.” [21:22]
  • Austin: “AI is not replacing a nurse practitioner, that's for sure.” [22:52]

[22:52] Q2: How Should We Treat Our "Bridge" (Taxable Brokerage) Account? (Anonymous)

• Young couple, $230k income, $250k in retirement, $100k in rental property equity, $10k in bridge account.
• Should they apply the ‘core/satellite’ portfolio to bridge account?
  • Austin: “That core satellite portfolio strategy, all it means is 65 to 85% of the portfolio is in index funds and ETFs. The other 15 to 35% is diversified ... opportunistic names.” [25:56]
  • Advice: Apply core-satellite to the bridge account, focus on building liquidity.

[30:28] Q3: When Is the Right Moment to Invest? (Sergey, CPA)

• Worries about investing at the "wrong" time.

• Robert: “Always dollar cost average. Don’t chase the headlines, don’t fear the headlines. ... The best day to buy The S&P 500 ... is today and the second best day is tomorrow.” [31:46]

  Bonus Wisdom: “The two best performing portfolios are those of people that forgot their password and those of dead people because they’re not trying to time the market.” [34:03]

Time-Stamped Segment Guide

• [00:23] Episode intro & overview: Identifying hidden mindset traps sabotaging wealth
• [01:12] The persistence of poverty mindsets even among high earners
• [02:22] Trap #1: "I’m just bad with money" (fixed mindset vs. growth mindset)
• [04:12] Trap #2: "A good job will fix all my money problems" (the Good Job Fallacy)
• [09:17] Trap #3: "I need to look successful to be successful" (keeping up with the Joneses)
• [13:36] Middle-class vs. truly wealthy lifestyle observations
• [14:35] Replacing poverty mindsets with growth mindsets—challenge to listeners
• [18:38] Q&A: Madison—should she take a $110k loan to become a nurse practitioner?
• [22:52] Q&A: Bridge account strategy—core/satellite approach for liquidity
• [30:28] Q&A: Best “timing” to invest, dollar-cost averaging, and ignoring headlines

Tone & Language

• Relatable, energetic, supportive: Both hosts share personal stories of missteps and learning, allowing listeners to see themselves in the narrative.
• Empowering: Focus on actionable shifts, not just theory; goal is to demystify finance and encourage “at bats” and consistent learning.
• Direct quotes showcase their candor and humor, making complex topics accessible and memorable.

Action Steps for Listeners

1. Identify which mindset trap you’ve fallen into (bad with money; good job will save me; need to “look” the part).
2. For 30 days, replace your old belief with the new growth-oriented one proposed by the hosts.
3. Focus on investments and wealth-building habits, not external validation or market timing.

Essential Takeaway

"If you can change your beliefs, you can change your bank account." —Robert Croak [15:54]

This episode is a masterclass in how shifting deeply embedded beliefs—more than any hack or tactic—is the real unlock for sustainable wealth in 2026 and beyond. Highly recommended for both beginners and established earners looking for the missing piece in their money journey.