Q&A: Spending $8K On Fun, Forming LLC For Rental, & Turning Basement Into Airbnb
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How do Robert and Austin introduce the Q&A format and invite listener questions?
Hey everyone and welcome back to the Rich Habits Podcast question and answer edition. These are our Thursday episodes where every single Thursday we answer your questions as if we were going through whatever you might be going through right now. You can ask us questions on Instagram at Rich Habits Podcast in our DMs, or you can email us your questions at rich habitspodcast at gmail.com. We love these episodes because we get to hear directly from our audience. audience. We have a hundred thousand of you that come back every single week to listen and tune in and interact with us. We're so grateful for that. And so these episodes are a cool opportunity for us to see what's really going on in your own money lives.
Yeah, I definitely love these episodes and they've grown to be so huge over the last few years. And just remember, for all of you that are avid listeners that are here every week, it's in your schedule. Share these episodes with a friend because everyone is going through something financially from the top to the bottom. It doesn't matter what someone's net worth is, everyone has issues and blind spots in their financial journey. So make sure You share with a friend. We'd love that. Show the support because you're here every week and we want to see more people get this education that we provide.
So our first question comes from Arturo C. Arturo says, Hi Austin and Robert, thank you for your continuous guidance and knowledge bombs that you drop on a weekly basis. Recently I heard Austin say something along the lines of, I saw NVIDIA was cheap, so I had to hit pause and go buy $10,000 worth of it, which made me wonder where does this random spare cash come from? High yield savings, checking account through a quick bank transfer. Sell something else in the brokerage account. I'm trying to capitalize on stocks trading at lower valuations. And I want to be ready with my capital and make sure it's in the right place. Thank you all for the help. Good question. Yeah. In this specific instance, what happened was what was it, Robert?
Like, I don't know, maybe like two or three months ago, NVIDIA was at like a buck ninety, a buck eighty, a buck ninety-five, something like that. And you look at its like historical valuation from a Priced earnings perspective. They just had a killer uh earnings results. And I was like, this makes no sense. I gotta own some more NVIDIA here. So yeah, I bought ten thousand dollars worth. What I did in that specific instance was I looked elsewhere in my brokerage account portfolio, and this was in one of my retirement accounts. And I was like, uh, I should probably get rid of that. I could I could see myself trimming this one a little bit, take some profits over here, and in all of that trading, quote unquote, added.
It up to about $10,000. I then took that cash in that retirement account, not a taxable event, and I invested it into NVIDIA in that instance. That's how I played that. If you are someone who's like trying to figure out, you know, how to do this, in my humble opinion, I think the best way to like think about monthly cash flow and investing and things of that nature, right after you've built your base. So after you've got the index funds and ETFs. And you're actively thinking about, oh, do I wanna buy a little bit more Bitcoin and have diversification into that? Do I wanna have this single stock or this thematic ETF in my portfolio? I like to think about it as a monthly calendar. So at the beginning of the month, I say, okay, great.
I'm gonna put $2,000 or, you know, in this instance for you, Arturo, who knows what your number is? Let's call it $2,000 a month. I invest $2000 a month. So I'm gonna put $2000 in this specific brokerage account. It's sitting in cash. I kind of Scan, I'm looking around, okay. The thing, Robert, that people make a mistake on is they get too active. They're looking every day, every moment, every trading hour. They're trying to figure out everything. It's not that deep, right? So I'm scanning, I'm looking, okay, let's dollar cost average.
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Chapters
4 chapters
1
How do Robert and Austin introduce the Q&A format and invite listener questions?
0:00β4:16
2
What is Arturoβs strategy for generating spare cash and allocating it for opportunistic stock purchases?
4:16β17:27
3
Why do the hosts recommend earmarking cash each month instead of letting it sit idle?
17:27β30:08
4
How much should a $400Kβnetβworth couple spend on a milestone splurge and why?
30:08β44:00
Speakers
2 identifiedMore from Rich Habits Podcast
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