The Money Expert: How Wealth Is ACTUALLY Built (Money Secrets Nobody Talks About) | Codie Sanchez

Added: Dec 3, 2024

The Reality of Wealth Creation

Sanchez begins by addressing a common misconception about wealth: that it is primarily inherited or the result of sheer luck. She emphasizes that 70% of millionaires are self-made, which highlights the importance of understanding the mechanics of wealth creation. Sanchez argues that many people are misled by the advice to "follow your passion," which can often lead to financial instability. Instead, she advocates for a data-driven approach to wealth, encouraging individuals to look at where the majority of wealthy people derive their income.

The conversation shifts to the concept of ownership as a critical factor in financial freedom. Sanchez explains that without ownership—whether through businesses, real estate, or investments—individuals are unlikely to achieve true financial independence. She stresses that ownership is not just about being an entrepreneur; it can also mean having equity in a business or investing in ventures that align with one’s skills and interests.

The Importance of Financial Literacy

Sanchez highlights the significance of financial literacy in today’s world. She points out that many people are intimidated by money and finance, often feeling that they lack the skills to navigate these areas effectively. This fear can lead to a cycle of financial dependency, where individuals rely on others to manage their money. Sanchez encourages listeners to learn the language of money, stating that understanding financial concepts is essential for making informed decisions.

She shares her own journey of overcoming her fears around finance. Sanchez recalls her early experiences in journalism, where she realized that her lack of financial knowledge limited her opportunities. By actively seeking to educate herself about money, she was able to break free from the constraints of her previous mindset. Sanchez believes that anyone can develop financial literacy with dedication and the right resources.

The Role of Grit and Endurance

In discussing the qualities necessary for success, Sanchez emphasizes the importance of grit and endurance. She explains that building wealth is often a long and challenging process, requiring individuals to push through obstacles and setbacks. Sanchez cites research by Angela Duckworth, which shows that grit is a key predictor of success. She encourages listeners to embrace the discomfort that comes with pursuing financial goals, as it is often a sign of growth.

Sanchez also addresses the misconception that success comes easily to those who are wealthy. She shares her own experiences of facing challenges and failures along her journey. By cultivating a mindset that values perseverance, individuals can better navigate the ups and downs of their financial pursuits. Sanchez believes that the ability to endure hardship is what ultimately separates successful individuals from those who give up.

The Power of Curiosity

Another key theme in the conversation is the power of curiosity in wealth-building. Sanchez asserts that money is attracted to those who ask questions and seek knowledge. She encourages listeners to adopt a curious mindset, exploring various avenues for financial growth. By being open to learning and discovering new opportunities, individuals can position themselves for success.

Sanchez shares her own experiences of networking and building relationships with mentors. She emphasizes the importance of seeking out individuals who can provide guidance and support. By asking questions and engaging with others, Sanchez was able to gain valuable insights that helped her navigate her financial journey. She believes that curiosity is a vital trait for anyone looking to build wealth.

The Value of Ordinary Businesses

Sanchez introduces the concept of investing in ordinary businesses as a viable path to wealth. She explains that many successful entrepreneurs have built their fortunes through seemingly mundane ventures, such as plumbing or landscaping. Sanchez argues that these businesses often have lower competition and can provide steady income streams. By focusing on Main Street businesses, individuals can tap into a wealth of opportunities that are often overlooked.

She shares her own experiences in acquiring and managing small businesses, highlighting the potential for growth in these sectors. Sanchez believes that anyone can succeed in this space with the right mindset and approach. By recognizing the value in everyday businesses, individuals can create wealth without needing to chase after the latest trends or fads.

The Importance of Negotiation Skills

Negotiation is another critical skill that Sanchez emphasizes throughout the episode. She explains that successful wealth-building often involves negotiating deals that benefit all parties involved. Sanchez encourages listeners to view negotiation as a collaborative process rather than a competitive one. By focusing on win-win scenarios, individuals can create lasting partnerships that lead to mutual success.

Sanchez shares practical tips for improving negotiation skills, such as understanding the needs and motivations of the other party. She believes that effective negotiators are those who can empathize with others and find common ground. By honing these skills, individuals can increase their chances of securing favorable deals and building wealth over time.

Overcoming the Fear of Money

Sanchez addresses the fear that many people have surrounding money and finance. She explains that this fear often stems from societal beliefs that money is inherently bad or that discussing it is taboo. Sanchez encourages listeners to challenge these beliefs and recognize that money is simply a tool that can be used for good. By reframing their relationship with money, individuals can reduce anxiety and take control of their financial futures.

She shares her own journey of overcoming her fears about money, emphasizing the importance of education and self-awareness. Sanchez believes that by understanding the true nature of money, individuals can empower themselves to make informed decisions. This shift in mindset can lead to greater financial confidence and success.

The Great Wealth Transfer

The conversation also touches on the concept of the Great Wealth Transfer, which refers to the impending transfer of wealth from the Baby Boomer generation to younger generations. Sanchez explains that this transfer presents a unique opportunity for young people to acquire businesses and assets that have been built over decades. She encourages listeners to be proactive in seeking out these opportunities, as many Baby Boomers may be looking to sell their businesses as they retire.

Sanchez highlights the importance of understanding the value of these businesses and the potential for growth. By positioning themselves as capable buyers, young people can take advantage of this wealth transfer and build their own financial futures. Sanchez believes that this moment in history is a pivotal time for aspiring entrepreneurs to step up and seize the opportunity.

The Dangers of Speculation

Sanchez warns against the dangers of speculative investments, such as day trading or investing in trendy assets like cryptocurrencies. She explains that these types of investments often lead to losses and can create a false sense of security. Sanchez encourages listeners to focus on building wealth through stable, income-generating assets rather than chasing after quick profits.

She shares her own experiences with speculative investments, emphasizing the importance of due diligence and research. Sanchez believes that by taking a more measured approach to investing, individuals can reduce their risk and increase their chances of long-term success. She advocates for a focus on fundamentals and a commitment to understanding the businesses in which one invests.

The Importance of Building Relationships

Throughout the episode, Sanchez emphasizes the importance of building relationships in the world of finance and business. She explains that networking and connecting with others can open doors to new opportunities and partnerships. Sanchez encourages listeners to actively seek out mentors and collaborators who can provide guidance and support on their financial journeys.

Sanchez shares her own experiences of cultivating relationships with successful individuals in her field. She believes that these connections have been instrumental in her growth and success. By prioritizing relationship-building, individuals can create a strong support network that can help them navigate the challenges of wealth-building.

The Mindset of Ownership

Finally, Sanchez discusses the mindset of ownership as a crucial element of financial success. She explains that individuals must adopt an owner’s mentality, taking responsibility for their financial futures and actively seeking out opportunities for growth. Sanchez believes that this mindset shift is essential for anyone looking to build wealth and achieve financial independence.

She encourages listeners to embrace the idea of ownership in all aspects of their lives, from their careers to their investments. By taking ownership of their financial decisions, individuals can empower themselves to create the lives they desire. Sanchez believes that this shift in mindset is the key to unlocking true financial freedom.