Rich Habits Podcast

Episode 154: Our Biggest Financial Red Flags & Green Flags
Hosts: Austin Hankwitz (A) & Robert Croak (B)
Date: January 26, 2026

EPISODE OVERVIEW

In this episode, Austin and Robert take on the roles of “financial fortune tellers” and break down the crucial financial "green flags" (habits that predict wealth) and "red flags" (habits that stealthily sabotage your financial future) for 2026. Instead of the usual "spend less than you make" advice, they dig into overlooked behaviors that can make or break your wealth-building journey. The hosts offer practical challenges, memorable quotes, and an engaging Q&A with real listener questions to round out the show.

KEY DISCUSSION POINTS & INSIGHTS

[01:40] Financial Green Flags for Wealth Building

[03:01] Green Flag #1: Track Your Net Worth Monthly

• Insight: Most millionaires track their net worth (not just their income) every month. The vast majority of Americans don’t know their own.
  • “Income is vanity. Net worth is sanity.” — Robert (03:31)
  • Example: Someone earning $200k but spending $210k is going backwards, while a $60k earner saving $15k is getting richer.
• Host Challenge: On the first Saturday of each month, calculate your net worth using a spreadsheet: list all assets and debts, subtract liabilities from assets, and focus on watching the number grow.
  • Quote: “You stop buying those liabilities which look like success on the surface, and you start instead buying assets that actually create wealth.” — Austin (04:33)

[05:03] Green Flag #2: Pay Yourself First—Invest Before Any Other Bills

• Insight: The wealthy invest before spending, treating investing as a non-negotiable "bill." Most people do the reverse and invest what's left over.
  • “The wealthy invest first and spend second. Everyone else does it backwards.” — Robert (05:11)
• Host Challenge: Automate a percentage (start with 5%, aim for 15%) of your paycheck to be invested immediately after you get paid.
  • “Your future self gets paid before your landlord, Netflix, and anyone else.” — Austin (05:56)

[07:06] Green Flag #3: Commit to Continuous Financial Learning

• Insight: Building systems is good, but continual growth and learning about money multiplies wealth further.
  • “If you don't understand something enough to teach it to someone else, you don't actually understand it.” — Austin (07:49)
• Host Challenge: Find two finance/investing concepts you can’t clearly explain. Learn them deeply enough to teach them, using podcasts, AI, or other resources.

[10:30] Financial Red Flags That Sabotage Wealth

[10:30] Red Flag #1: Buying Because It’s ‘On Sale’

• Insight: People often “save money” by spending on unneeded things during sales—this isn’t truly saving.
  • “Broke people have closets full of deals and bank accounts full of nothing.” — Robert (11:27)
• Host Fix: Before any impulse purchase, ask: “Would I buy this at full price?” If not, pass—even if it’s on sale.

[12:35] Red Flag #2: Perpetual ‘Emergencies’

• Insight: If “emergencies” happen every month (car repair, medical, home fixes), it’s not bad luck—it’s bad planning.
  • “Emergencies are defined as unforeseen and necessary. Most aren’t unforeseen, just poorly planned for.” — Austin (12:53)
  • Supporting data: 37% of Americans can’t cover a $400 emergency (Federal Reserve study).
• Host Fix: Examine 3–12 months of your spending. Identify what could have been anticipated, then begin forecasting expenses and building sinking funds.
  • “Broke people react; wealthy people forecast.” — Austin (15:10)

[16:32] Red Flag #3: Waiting for the ‘Perfect Moment’

• Insight: Waiting for a raise, perfect market conditions, or zero debt means you’ll likely never start investing.
  • “Motion beats meditation. Imperfect action beats perfect procrastination every single time.” — Robert (17:57)
• Host Fix: Start investing, no matter how small the amount. Compound interest rewards time, not perfection.
  • Example: "$500/mo invested from age 25 to 65 can become $2.3 million. Wait 10 years to start and it’s $740,000—a $1.5M difference." — Austin (17:27)

[18:52] The “Flag Scorecard” System

• Instructions: Every green flag = +1; red flag = –1. If you’re negative, you’re heading for trouble; zero means treading water; positive means likely to build wealth.
  • “If you hit all three of those green flags with no red flags, you are virtually guaranteed to grow wealth in 2026 and beyond.” — Austin (18:44)
• Key Lesson: Fix red flags before piling on more green ones (“Don’t row harder in a leaky boat—plug the holes first!”)

[19:11] Mindset and Motivation

• Emphasis on the power of “imperfect action” and giving yourself grace if progress is slow.
• “The wealthy aren’t doing anything you can’t do. They’re just doing the boring, simple things that work, over and over.” — Austin (20:22)
• “Those small changes constantly applied create extraordinary results.” — Austin (19:49)

[21:11] Q&A HIGHLIGHTS

[26:46] 1. Small Business Guidance (Kiko)

• Question: Who should guide us as we grow a profitable nursery business—CPA, financial advisor, or industry veteran?
• Robert: Start with industry veterans—pay a consulting fee if needed. They’ll understand your niche best.
• Austin: Master basic business math first; then focus on scalable processes and don’t neglect retirement accounts as a business owner.

[31:21] 2. Am I Behind at 18? (Christian)

• Situation: Working retail, side gig with DoorDash, saving/investing early, still feels behind.
• Robert: “You are absolutely crushing it... I know 40-year-olds with negative net worths.”
• Austin: Don’t fall into the trap of comparison, especially via social media. Run your own race and stay focused.

[33:49] 3. ETF Fees Explained (Amanda)

• Question: Why do some ETFs (like QQQ or SPYI) have higher fees, and are they worth it?
• Austin: Expense ratios matter, but performance is more important. Actively managed ETFs cost more but might deliver higher yields or special strategies. Compare total returns, not just costs.
• Robert: “Expense ratio is important but shouldn’t be the only thing unless you’re investing millions.”
• Austin: Most ultra-low fee ETFs passively track indexes (e.g., VOO at 0.03%). Actively managed funds cost more due to ongoing work and research.

NOTABLE QUOTES & MEMORABLE MOMENTS

• “Income is vanity. Net worth is sanity.” — Robert (03:31)
• “You stop buying liabilities that look like success and start buying assets that actually create it. I think we need to get that in a tattoo or a sticker.” — Robert (05:03)
• “A deal is only a deal if you were going to buy it anyway.” — Austin (11:41)
• “Broke people react, wealthy people forecast.” — Austin (15:10)
• “Motion beats meditation. Imperfect action beats perfect procrastination every single time.” — Robert (17:57)
• “Plug the leaks first. Then you can accelerate.” — Robert (18:52)
• “The wealthy aren’t doing anything you can’t do. They’re just doing the boring, simple things that work over and over while everyone else is looking for shortcuts that don’t exist.” — Austin (20:22)
• “Comparison is the thief of joy. You are running your own race, you’re in your own lane.” — Austin (32:28)
• “Take notes and take action.” — Both, recurring throughout episode

DIRECT ACTIONABLE CHALLENGES

• Track your net worth every month.
• Set up automated investing—“pay yourself first.”
• Choose and master two new finance topics, then teach them to someone.
• Score yourself on green and red flags, and work on plugging “financial leaks” first.
• Start investing NOW, no matter how small.

This episode offers a practical, mindset-focused blueprint for identifying and fixing the sneaky habits that hold most people back financially. Through clear flag systems, relatable anecdotes, and direct challenges, Robert and Austin make the path to wealth both actionable and approachable.