Rich Habits Podcast – Q&A: Making Extra Money, Opening a Bar, & Paying Down Loans
Hosts: Austin Hankwitz & Robert Croak
Date: December 18, 2025
Episode Overview
This special Q&A edition of the Rich Habits Podcast features hosts Austin and Robert diving deeply into listeners’ real-life financial dilemmas and ambitions. Covering topics from crushing student loan debt and windfalls to best practices for side hustles and approaching home ownership, the duo balances personal experience with actionable advice. The tone is encouraging, practical, and at times direct, embodying their mission to demystify money strategies for wealth building at any stage.
Key Discussion Points & Insights
1. Paying Off Student Loans vs. Investing (Kyle, age 29)
[03:23–09:14]
- Situation: $219,000 in student loans at ~8% interest; just graduated grad school, fiancé and child, $2,700/month rent. Concerned about losing years to loan payoff before investing.
- Austin’s Advice: Balance is key—don’t pause investing entirely.
“Bare minimum to be investing and maxing out that Roth IRA and any money above that … use that to pay off these student loans a little bit more aggressively. … 8% interest is no joke.” – Austin [05:37]
- Robert’s Perspective: Renting is smart here; don’t rush to buy a house with high debt-to-income ratio.
“So many people think the American dream is … get the good job, buy a house. But if you never take the time to set yourself up for the future and get the compounding effect working … you just have this high debt-to-income ratio and you don’t have the money to put aside for the future.” – Robert [08:13]
- Highlights:
- Max out Roth IRA each year, encourage fiancé to do the same.
- Every dollar above that goes to high-interest loans.
- Wait on home ownership until loans are meaningfully reduced.
2. Managing Windfalls & Investing for the Long Term (Alex S., 24 & wife, 23)
[09:14–16:22]
- Situation: $700,000 settlement (after tough circumstances), bought a house, $500k left. Unsure whether to prioritize Roth IRAs vs. investing in a taxable brokerage (bridge) account.
- Robert’s Take:
“Definitely max out the Roths every year. Both of your Roths. … If you each max those out every single year, then take the rest, … have the traditional brokerage account … and you’re going to diversify over a basket of ETFs.” – Robert [11:18]
- Austin’s Cautionary Tale: Most people who receive a windfall lose it fast (cites statistics about NFL players and lottery winners).
“The boring strategies are the ones that are going to work the best for you … literally pretend that this money does not exist and you are now going to be able to retire at 45 instead of 65.” – Austin [13:33]
- Key Recommendations:
- Max out both Roth IRAs yearly.
- Put the rest into broad, low-cost index funds (S&P 500, Nasdaq 100).
- Resist risky ventures & lifestyle inflation.
- Keep your windfall quiet to avoid unsolicited pitches.
- Memorable Advice:
“If you can invest this money now and forget it exists, don’t talk about it … the less distractions you’ll get.” – Robert [16:22]
3. What to Do with a Surplus Emergency Fund (Kaden, age 27)
[17:13–22:12]
- Situation: Owns a home, $120k invested, $25k in high-yield savings (feels $10k is extra), roommates cover mortgage, no debt besides mortgage.
- Austin’s POV: The moment you have to decide between maximizing future gains and enjoying your success.
“How can you turn those numbers into smiles for yourself and people you care for?” – Austin [19:55]
- Robert’s Warning:
“This is also where a lot of people fall off the rails. … They end up going backwards financially.” – Robert [20:25]
- Actionable Tips:
- Carefully and strategically diversify new investments.
- Don’t scatter surplus funds into “random” opportunities.
- Pause to define what ‘enjoyment’ means to you—consider experiences, gifts, education, not just spending for its own sake.
4. Guilt-Free Spending Milestones & The Importance of Self-Reward
[23:19–25:45]
- Topic: How and when to allow yourself enjoyable spending in the journey of building wealth.
- Austin Shares His System:
“For every hundred thousand dollars that I get invested in the markets, I have a guilt-free $10,000 that I can spend on anything I want to just feel good about it. … For you listening, … maybe every $10,000 you invest, you guilt-free spend $1,000. Personal finance is personal, figure it out.” – Austin [24:17]
- Robert Agrees: Have a plan, set milestones, and budget enjoyment.
5. Prioritizing Debt Payoff After Home Purchase (P., age 37)
[26:04–29:50]
- Situation: $100k base built, $23k in high-yield savings, $12k car loan (6.5%), $68k student loans (4.5%), $2,000–$2,500/month surplus post-expenses, recently bought a home.
- Austin’s Steps:
“Start with that highest interest rate first, which is that car. … Once you’ve paid that off, take that $410/month payment, add it … to pay off the student loans. … Enjoy your life, congrats, you’re rich. You did it right.” – Austin [27:35]
- Robert’s Nugget: Don’t let temporary illiquidity (like a home down payment) make you feel poor; stick to your plan.
“That is a very critical moment in your investing and financial journey to understand … that is why we always say build your base first.” – Robert [29:50]
6. Direct Indexing for Beginners (L.)
[31:42–33:50]
- Question: How do you set up direct indexing on Public—S&P 50, 100, or 500?
- Austin’s Method:
“I’m tracking the S&P 100, rebalancing quarterly, and the weighting is based on the index.” – Austin [32:03]
- Robert’s Advice: Start simple with the S&P 500 and get more granular as your portfolio grows.
7. Opening a Bar/Grill with Negative Net Worth (Renan, age 34)
[33:50–37:30]
- Situation: Negative $36,000 net worth (auto loan, credit cards), band musician, dreams of opening a bar/grill.
- Austin’s Reality Check:
“I would focus on getting out of this trap of negative net worth and … get $100,000 invested into your base before you begin to … take on a business loan.” – Austin [34:20]
- Robert’s Candid Warning:
“You have to get to ground zero first and work towards getting that $100K base because right now, you’re looking at throwing more irons into the fire while you’re drowning in debt.” – Robert [35:44]
- Strategic Advice:
- Focus on increasing income and cleaning up all consumer debt.
- Delay entrepreneurship until on solid financial ground—risk is too high otherwise.
8. Extra Money, Side Hustles & Timing the Home Purchase (Brittany, age 23)
[37:30–42:02]
- Situation: $40k/year, $15k in high-yield savings (emergency fund), $3k invested in Roth IRA, single with time for extra work.
- Austin’s Playbook: Build up the $100,000 base before targeting a home or car purchase.
“Take it easy. We want to see you build that hundred-thousand-dollar base before you go out and save for a home. And you’re well on your way.” – Austin [38:47]
- Robert Reflects:
“I disappeared for years. … I did nothing for like three years because I wanted to set myself up just like you are.” – Robert [39:51]
- Actionables:
- Use free time for high-ROI side hustles (delivery, service industry, etc.).
- House hack when buying property.
- Remember: This is a season of your life dedicated to building.
9. Why Early Hustling Pays Off
[41:01–42:44]
- Austin & Robert Emphasize: Working hard and saving aggressively in your early 20s leads to disproportionate financial freedom later.
“Having 50, 75, $100,000 working and building for you at 25, 26, 27 years old, that's how you retire as a multimillionaire.” – Austin [41:41]
- Challenge to Listeners: Survey older peers about their financial base to realize the benefits of early discipline.
Notable Quotes & Moments
- “You can’t out-invest high-interest debt.” – Austin [04:25]
- “The boring strategies are the ones that are going to work the best for you.” – Austin [13:33]
- “The less people that know you have the money, the less amount of people that come to you with the best opportunity of your lifetime.” – Robert [16:22]
- “Numbers on a computer screen going up do not … [make you] as fulfilled as you might think.” – Austin [22:12]
- “For every hundred thousand dollars that I get invested in the markets, I have a guilt-free $10,000 that I can spend on anything I want as to just feel good about it.” – Austin [24:17]
- “Don’t go broke to own a home, especially if you buy too much home.” – Robert [30:16]
Timestamps for Key Segments
- [03:23] – Tackling massive student debt vs. investing
- [09:14] – Managing a windfall and long-term growth
- [17:13] – What to do with a surplus emergency fund
- [23:19] – Rewarding yourself for financial wins
- [26:04] – Prioritizing debt payoff post-home purchase
- [31:42] – Direct indexing starter tips
- [33:50] – Opening a bar/grill when financially underwater
- [37:30] – Smart side hustles, early savings & timing a home
- [41:01] – Hustle as a season, not a lifelong grind
Final Takeaway
The persistent message: Build your financial foundation first, stay focused on boring but effective strategies, avoid risky shortcuts, and don’t neglect enjoying the journey—but only as a reward for hitting meaningful milestones. The Rich Habits philosophy prioritizes patience, intentionality, and putting yourself in a position to turn income into lasting wealth, at any age or stage.