The #1 Money Lesson School Failed To Teach You [Escape The Rat Race] | Codie Sanchez

Added: Sep 27, 2023

Sanchez believes that business, especially small business, is often overcomplicated. While Silicon Valley billionaires and tech companies receive a lot of attention, the real wealth and success often lies in local businesses such as plumbing or landscaping companies. Money is the architect for change in the world, whether it's influencing elections, changing local communities, or driving economic growth. Sanchez sees money as a tool for freedom and power, rather than a means to acquire material possessions.

She recalls her early experiences working at Vanguard, a financial management company, and realizing that there was a whole language and world of finance that she didn't understand. This led her to recognize the importance of financial literacy and taking control of her own financial future. She saw the impact of financial crises on people who didn't understand the stock market and decided she would never let that happen to herself.

Sanchez also discusses the importance of language and communication in business. She shares an anecdote about trying to introduce personal development events for her blue-collar workers, only to find that they didn't understand or relate to the concept. This made her realize that different worlds exist within society, and it's important to understand and adapt to the language and values of different groups.

She criticizes the elitism and bubble mentality that exists on the internet, where people often belittle or dismiss ideas and practices that are unfamiliar to them. Sanchez believes that self-education and personal development are valuable pursuits, and that everyone should have some incentive to improve themselves and leave a legacy beyond their own existence.

Sanchez and the host discuss the concept of life as a game, where problems are seen as levels to overcome. They emphasize the importance of understanding the rules of the game and mastering them in order to achieve success. They also discuss the role of struggle and sacrifice in finding happiness and fulfillment.

The conversation shifts to the topic of fame and money, and the importance of understanding their true value. Sanchez acknowledges the success of figures like Kim Kardashian and the lessons that can be learned from their achievements. However, she also expresses a desire to see more people like the host, who are focused on mission and values rather than just fame and wealth.

Sanchez emphasizes the importance of knowing oneself and understanding one's unique skills and interests. She encourages listeners to identify what they enjoy doing, what they are skilled at, and what they become obsessed with. By narrowing down these interests and passions, individuals can find their own unique path to success.

The podcast continues with a discussion on the importance of time and consistency in achieving success. Sanchez shares a story about a billionaire she met who emphasized the power of time and consistency in his own journey. She believes that time and consistent effort are the key factors that separate billionaires from others, and that anyone can achieve success with enough dedication and hard work.

Sanchez starts by highlighting the common misconception that financial success is solely dependent on earning a high income. She argues that true wealth is built through smart financial decisions and investing, rather than relying on a high salary. She encourages listeners to focus on building assets and generating passive income.

Sanchez shares her personal journey from journalism to finance, explaining how she learned to navigate the world of investing and build wealth. She emphasizes the importance of asking questions and seeking knowledge, even if it means admitting that you don't know something. Sanchez believes that asking questions is a sign of intelligence and a key to learning and growth.

She also discusses the significance of having a clear focus and narrowing down one's priorities. Sanchez shares her own struggle with narrowing her focus and the challenges of having multiple interests and passions. She acknowledges that focusing on one thing can lead to better results and productivity, but also recognizes the difficulty of letting go of other interests.

Sanchez then delves into the process of buying businesses and building wealth. She explains how she developed criteria and systems to evaluate potential deals and investments. She emphasizes the importance of continuous learning and analysis, particularly when deals go wrong. Sanchez believes that documenting and analyzing mistakes is crucial for personal and professional growth.

The conversation shifts to the topic of culture and leadership. Sanchez emphasizes the importance of creating a strong company culture and hiring the right people. She believes that culture is a key factor in employee retention and overall success. Sanchez encourages leaders to be authentic and true to themselves, rather than trying to fit a specific mold.

She also discusses the concept of effective and efficient days, highlighting the importance of prioritization and time management. Sanchez shares her own approach to scheduling, which involves blocking off specific times for focused work and meetings. She emphasizes the need to align one's calendar with their priorities and to be ruthless in prioritizing tasks.

Sanchez emphasizes the importance of continuous learning and staying curious. She encourages individuals to ask questions, seek knowledge, and surround themselves with people who have the skills and knowledge they want to acquire. Sanchez believes that learning from others and seeking different perspectives is crucial for personal and professional growth.

Sanchez starts by explaining that many people struggle with money because they lack the necessary knowledge and skills to manage it effectively. She believes that financial literacy should be a priority and that individuals should take responsibility for their own financial education.

Sanchez argues that the key to financial success is to understand that money is a prediction engine. She suggests that people should update their mental models and recognize that there is always a solution to financial problems, even in difficult economic times. She encourages individuals to own their mistakes, learn from them, and try again.

Sanchez shares her personal approach to learning new things, which involves immersing herself in the environment where the subject is being practiced. She gives an example of how she wanted to learn about finance, so she got a job at Vanguard and asked a lot of questions to learn from her colleagues. She believes that being curious and asking questions is a valuable way to gain knowledge and experience.

Sanchez also emphasizes the importance of surrounding oneself with top performers. She cites scientific research that shows being around high achievers can increase one's own performance by 15%. She advises individuals to seek out companies and communities where they can learn from successful people and be challenged to improve.

The conversation then shifts to the topic of buying businesses as a way to generate wealth. Sanchez explains that there are millions of small businesses for sale in the US, and many owners are willing to offer seller financing. This means that instead of paying the full price upfront, buyers can make payments over time using the business's profits. Sanchez believes that buying existing profitable businesses is a smart alternative to starting a new venture or engaging in risky investments.

She encourages individuals to consider buying local businesses in their communities and building relationships with business owners who may be looking to retire or transition out of their businesses. Sanchez believes that a groundswell movement of people buying small businesses can help prevent large corporations from dominating the market.

Sanchez also shares a valuable lesson she learned from Bill Perkins, who advised her to think bigger and not limit herself to small-scale investments. She realized that she had been thinking like a millionaire and needed to think like a billionaire to achieve generational wealth.

The conversation continues with a discussion about the relationship between money and happiness. Sanchez shares her personal experience and believes that material happiness does not significantly increase beyond a certain income level. However, she acknowledges that money can provide power and opportunities to make a positive impact in the world.

Sanchez explains that people often view money as a zero-sum game, where one person's gain is another person's loss. However, she argues that wealth is different from money. Wealth is created through the manipulation of entropy, where value is added or improved without taking away from others. She uses the example of rebuilding a house, which increases its value without harming anyone or taking money away from others.

She also highlights the importance of understanding the difference between money and wealth in order to achieve financial success. While money is necessary, it is not the only factor. Wealth, which includes assets, resources, and time, is equally important. Sanchez believes that people should focus on creating value and providing solutions that others want, rather than just accumulating money.

Sanchez also discusses the concept of manifesting and the power of belief. She believes that believing in one's ability to achieve something is important, as it motivates action and the acquisition of skills. She shares her personal experience of believing in her ability to become rich from a young age, which motivated her to keep pushing forward despite failures.

She also talks about the importance of having a partner in life and business. Sanchez believes that having a supportive partner who shares your goals and values is a game-changer. She emphasizes the need for a strong partnership and the benefits it brings, such as shared decision-making and support during difficult times.

Sanchez shares her method for convincing business owners to sell to her. She emphasizes the importance of asking the right questions and showing empathy. She starts by showing genuine curiosity about the business and the owner's journey. Then, she empathizes with their challenges and pain points. Finally, she offers a solution by expressing her interest in buying the business and providing a valuation. She ensures that the engagement is a win for the business owner, even if the deal doesn't go through, as it can lead to future referrals.

She also discusses the importance of critical thinking and contrarian thinking. Sanchez believes that critical thinking is essential for making informed decisions and questioning one's own beliefs. She mentions the launch of an Instagram account called "Contrarian Thinking," where she shares the ideas of contrarian thinkers who have paid a price for their ideas. She believes that contrarian thinking is necessary to challenge the status quo and avoid conformity.

Sanchez emphasizes the importance of sovereignty, which she defines as the ability to be self-sufficient and make independent decisions. She believes that money is a key factor in achieving sovereignty, as it provides resources, power, and time. She argues that without financial freedom, people are at the mercy of others and lack the ability to make critical decisions.

Towards the end of the podcast, Sanchez shares her thoughts on the importance of taking risks and embracing failure. She believes that failure is an essential part of the learning process and encourages listeners to embrace failure as a stepping stone to success.