186: What Do Rich People Buy LAST?

September 7, 2026

AI Summary

5 min read

For a multi-millionaire, Austin Hankwitz still drives a 2021 Toyota 4Runner. That fact lands differently once you hear the central argument of this episode: the difference between broke people and rich people is not what they buy, but when they buy it. Broke people buy status items first, hoping wealth will catch up later. Rich people buy them last, after the wealth is already real and the purchase is funded by money that was never needed for anything else.

The car: the most visible mistake

The first category is the car, because it is the most visible status signal most people own. Broke spending on a car means financing or leasing something well above what your income supports, using the vehicle to signal success you have not yet achieved. The numbers are stark: the average new car payment in 2026 is $770 a month, total auto loan debt in the U.S. just passed $1.7 trillion (more than student loan debt), and 25% of new car buyers are using 84-month loans — seven years of payments on an asset that loses 20% of its value in the first year and roughly 42% in the first five. As Hankwitz puts it, you are "financing a depreciating asset with debt, which is the worst combination in personal finance."

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What you'll learn

1 (00:52) **Episode Framework: Broke People Buy Status First, Rich People Buy Status Last** - The hosts introduce the core thesis: wealthy people don't buy more, they buy in a different sequence. Broke people signal status hoping wealth will follow, while rich people buy status items last, using money that is already surplus.
2 (02:17) **Category 1: Cars - The Depreciating Status Signal** - Robert argues that financing or leasing a car beyond your income to signal success is the classic broke move, while wealthy people buy reliable cars and only upgrade as a reward for existing wealth.
3 (09:14) **Robert's Aston Martin Story: Buying Used to Beat Depreciation** - Robert recounts buying his dream car, a used Aston Martin D V9, at the height of Silly Bands in 2010, saving $85,000 in depreciation by not buying new.
4 (10:28) **Category 2: Houses - Avoiding the "House Poor" Trap** - The hosts explain that broke spending means stretching to the maximum bank approval for a bigger house in a better zip code, while rich spending means keeping housing costs a manageable slice of income.
5 (15:10) **Robert's Four-Plex Strategy & The Danger of Lifestyle Creep** - Robert explains his first property was a four-unit apartment where he lived in the largest unit and rented out the other three, building wealth instead of buying a single-family home.
6 (17:17) **Category 3: Luxury Goods - The Purest Form of Status Spending** - Robert and Austin argue that buying designer bags, luxury watches, and high-end jewelry specifically for their signaling value is the "purest form of spending to look rich."
7 (19:04) **Austin's Personal Examples: No Rolex, Quiet Wealth** - Austin reveals he is worth millions but does not own a Rolex; his most expensive watch is a $300 Tissot.