The Real Truth About Getting RICH In 2024! 3 Steps To Make Your First Million | Codie Sanchez
In this episode of The School of Greatness, Codie Sanchez delves into the mindset and strategies for building wealth through entrepreneurship and business ownership. She challenges conventional notions about money and encourages a shift from traditional employment to becoming part of the 3% who own businesses and determine profits.
Sanchez explores the importance of embracing calculated risks, learning from failures, and channeling emotions productively towards ambitious goals. She also shares insights on navigating the current economic climate, including recognizing opportunities for disruptive new businesses during potential recessions. Sanchez advocates for a community-focused approach and an "owner" mentality of collective empowerment.
This is a preview of the Shortform summary of the Oct 14, 2024 episode of the The School of Greatness
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1-Page Summary
Mindset and psychology for building wealth
Success requires a particular mindset - one that sees opportunity where others see obstacles and embraces calculated risks, according to Codie Sanchez. She challenges societal notions about money being evil and encourages self-belief in wealth generation. Sanchez advocates even channeling emotions like anger productively towards ambitious goals.
The principles and strategies of entrepreneurship and ownership
Shifting from traditional employment to entrepreneurship is key, per Sanchez. Rather than empowering others' dreams by working for them, she urges joining the 3% who own businesses and determine profits. Sanchez values speed and decisiveness, learning from failures and rejections when pursuing new ventures. She showcases the exponential growth potential of business ownership over incremental income.
Navigating the current economic climate and opportunities
Sanchez views the current economy as rife with opportunity for disruptive new businesses. Amidst potential recession, she recommends a "survival" mindset: prudent risk-taking and operational efficiency. However, she also notes economic contractions can paradoxically create openings for strategic entrepreneurs.
Championing a community-focused approach, Sanchez advocates supporting local businesses and adopting an "owner" mentality of collective empowerment. She rebukes narratives villainizing labor and wealth creation, instead framing it as fulfilling the American dream of shared prosperity.
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Counterarguments
- While embracing risks is important, not all individuals may have the same capacity for risk due to varying personal and financial circumstances.
- The notion that money is not evil does not address the systemic issues that can be associated with wealth accumulation and inequality.
- Channeling emotions like anger towards goals may not be healthy or effective for everyone; some may find more success with other motivational strategies.
- Entrepreneurship is not a viable or desirable path for everyone; some individuals may find more fulfillment and stability in traditional employment.
- The statistic about the 3% who own businesses may oversimplify the complexities and barriers to entry in entrepreneurship.
- Speed and decisiveness are valuable, but so is careful planning and deliberation, which can sometimes lead to better long-term outcomes.
- Learning from failures is important, but it's also crucial to recognize that not everyone has the same ability to recover from setbacks due to differing resources and support systems.
- The potential for exponential growth in business ownership must be balanced with the understanding that most businesses do not achieve such growth and many fail.
- Viewing the economy as full of opportunities can overlook the real challenges and hardships that economic downturns pose for many people.
- A "survival" mindset may not be sustainable or healthy for all individuals or businesses in the long term.
- While economic contractions can create opportunities, they can also lead to significant hardship for many, which should not be overlooked.
- Supporting local businesses is important, but it's also necessary to recognize the role and impact of larger corporations and global market dynamics.
- The concept of fulfilling the American dream through labor and wealth creation may not resonate with everyone and can ignore the diverse values and definitions of success that exist across cultures.
Actionables
- You can start a side hustle by identifying a problem in your daily life and creating a simple solution to sell. For instance, if you notice your community struggles with organizing local events, offer a bulletin board service where you post and update events for a small fee.
- Transform your approach to purchases by investing in items that could generate income. Instead of buying a new TV, consider purchasing a quality camera to start a freelance photography service, capturing events and portraits for people in your area.
- Use social media to support and promote local entrepreneurs, which can foster a network of mutual support. Create a Facebook group or Instagram page dedicated to featuring local businesses, encouraging community members to shop locally and help each other grow.
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Mindset and psychology for building wealth
Wealth building is as much about your mental approach as it is about your practical financial strategies. Codie Sanchez delves into the psychology of wealth, highlighting the importance of mindset in achieving financial success.
Realizing the limitations and biases that can hold you back from achieving financial success
The mental barriers that prevent wealth creation can often be subtle and insidious. Sanchez discusses these damaging mindsets and mental obstacles, such as the fear of failure and the need for approval, which inhibit many from taking the necessary steps toward financial prosperity. She also addresses the common aversion to debt and risk-taking, which are essential for growth but often avoided, especially by those from backgrounds where taking risks was historically discouraged or punished.
Adopting a growth-oriented, opportunity-seeking mindset
Building wealth requires a particular kind of mindset: one that sees opportunities where others see obstacles and that possesses the agility to move swiftly to act on those opportunities. Sanchez illustrates this with the example of billionaire Sam Zell, who often goes against the grain, particularly in times of widespread fear, showcasing the importance of a contrarian and risk-embracing approach to wealth.
She also mentions Zell's eccentric reminder to take risks, such as his association with a motorcycle gang, which underscores that even highly successful individuals need to guard against the fear of standing out and taking risks. Additionally, Sanchez points to Bill Perkins' approach to business that values speed and decisiveness, advocating for the idea that one must act quickly and without hesitation to capitalize on fleeting opportunities.
Reprogramming your mental approach to money and success
One of the core elements of this wealth-building mindset is shaking off negative societal narratives about money and success. Sanchez challenges the notion that money is inherently evil or that the pursuit of wealth is unethical, ...
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Mindset and psychology for building wealth
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Counterarguments
- While a growth-oriented mindset is beneficial, it's important to recognize that not all opportunities lead to success, and the ability to discern which risks are worth taking is crucial.
- The contrarian approach to wealth, like that of Sam Zell, may not be suitable for everyone, as it requires a high tolerance for risk that not all individuals possess.
- Challenging negative societal narratives about money is important, but it's also essential to acknowledge and address the systemic issues and inequalities that can make wealth accumulation more difficult for certain groups.
- Embracing emotions like anger in wealth creation can be productive, but it's also important to man ...
Actionables
- Start a 'Fear-Setting' journal to confront financial fears by writing down worst-case scenarios and devising plans to mitigate them. This helps you understand the real impact of potential failures and reduces the fear associated with financial risks. For example, if you're afraid of investing in the stock market, write down what could realistically happen if your investment doesn't pan out and how you could recover from that loss.
- Create a 'Contrarian Opportunity' ledger where you list down mainstream financial advice you hear and then brainstorm opposite or less popular strategies. This exercise encourages you to think outside the box, similar to successful contrarians, and might reveal unconventional opportunities. For instance, if the common advice is to save money, you might explore ways to invest or spend in areas that could lead to greater long-term gains.
- Develop an ' ...
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The principles and strategies of entrepreneurship and ownership
Codie Sanchez and other experts tackle the pathway to wealth through entrepreneurship and ownership, revealing that the road less traveled by traditional employment may indeed make all the difference.
Prioritizing entrepreneurship and business ownership over traditional employment
Recognizing that working for others ultimately empowers their dreams rather than your own
Codie Sanchez emphasizes the importance of shifting from being a cog in the wheel to owning the machine. She argues for becoming a CEO or business owner to join the 3% that determine profits. Sanchez points out that working for someone else props up their dreams, not yours, and stresses the significance of prioritizing one's own goals. For example, she recalls how staying at a company that wouldn't allow her to grow limited her potential.
Understanding that leaving a job or company, even if it seems ungrateful, can be necessary to pursue your own goals and growth
Sanchez expresses disdain for the mainstream educational system, which encourages people to settle into traditional job roles. She narrates how she started a vocational school as part of a movement against the norm. Despite potential repercussions, Sanchez underscores leaving a job as pivotal for personal growth. After her ideas at Vanguard were taken and executed by another, she realized the necessity of moving on for her advancement. Facing that you might be accused of ingratitude or selfishness for leaving a job, she asserts, is an essential step in pursuing entrepreneurship and success.
Adopting an aggressive, action-oriented mindset to rapidly test, iterate, and scale ideas
Embracing the lessons and opportunities that come from failure, rejection, and being "pushed out" of previous roles or ventures
Sanchez shares her personal experience of being fired and reveals how embracing the lessons from failure fueled her ambition and led to greater financial success than her former peers. Sanchez's mentor, Bill Perkins, probes her risk-taking level, noting that it could be a limiting factor if too cautious. She uses her own journey of being ousted from a company as an example to inspire others to learn from such experiences.
Prioritizing speed and decisiveness over extensive planning or analysis paralysis when pursuing new opportunities
The importance of speed in business is enforced by her story of being pushed out of roles, pushing her to find success elsewhere. Sanchez reflects on Bill Perkins criticizing her prioritization skills and illustrating that a lack of action is the biggest competitor. She encourages people to act quickly and decisively, as waiting could cost them their net worth.
Leveraging the power of compounding wealt ...
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The principles and strategies of entrepreneurship and ownership
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Counterarguments
- Entrepreneurship is not a viable path for everyone due to varying personal circumstances, risk tolerance, and skill sets.
- Traditional employment can offer stability, benefits, and a predictable income that entrepreneurship cannot always guarantee.
- Not all individuals are suited to the risks and uncertainties of business ownership and may thrive better in structured environments.
- The idea that leaving a job is necessary for growth overlooks the potential for career advancement and skill development within traditional employment.
- Emphasizing speed over planning can sometimes lead to hasty decisions and business failures, underscoring the value of due diligence.
- The narrative may underplay the role of privilege, resources, and networking in achieving successful entrepreneurship and ownership.
- Scaling a business is often more complex than presented and can involve significant challenges, including financial risk, market competition, and operational difficulties.
- The focus on high-growth ventures may not acknowle ...
Actionables
- You can start by evaluating your current job role to identify any potential for ownership or equity opportunities. If none exist, consider creating a side project that could evolve into a business. For example, if you're skilled at graphic design, start offering your services freelance and build a client base that could eventually turn into your own design firm.
- Develop a habit of making quick decisions in low-risk situations to train your decisiveness muscle. Start with daily life choices, like picking a meal or a workout routine swiftly, and gradually apply this to bigger decisions, such as committing to a new skill or project. This practice will help you become more comfortable with making fast decisions in higher-stakes business scenarios.
- Crea ...
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Navigating the current economic climate and opportunities
The current economic climate is fraught with challenges, but also filled with unprecedented opportunities for those willing to embrace change, act decisively, and focus on community empowerment. Sanchez imparts that wealth multiplication through business ownership and upending traditional economic models can lead to success in these times.
Recognizing the abundance of wealth-building opportunities in the current environment
According to Sanchez, the present economic landscape is fertile ground for entrepreneurs. With more businesses started since 2020 than ever before in history, there exists massive potential for growth and ownership. She asserts that it has never been easier to start a business, casting the era as one of abundance and opportunity for those willing to take the plunge into business ownership.
Identifying areas of the economy ripe for disruption or transformation
Sanchez recognizes certain sectors of the economy as ripe for disruption, presenting an advantageous moment for new business models to flourish. She points to the numerous start-ups and affirms the idea of transformation as an accessible avenue in the current economic scenario.
Adapting and thriving amidst economic uncertainty and potential recession
Sanchez introduces the concept of a "survival" mindset. Amidst signs of a potential recession, she promotes prudent risk-taking, operational efficiency, and making the most of available resources. She brings attention to her own practices, applying this approach across her portfolio companies and stressing the importance of adapting to survive, noting that companies resilient through downturns often emerge more successful and profitable thereafter.
Recognizing that periods of economic contraction can create significant opportunities
During economic downturns, Sanchez provides a contrarian view – economic contractions can, paradoxically, yield substantial opportunities for those strategic and bold enough to seize them. She recalls the speeches of venture capital firms during difficult periods, which suggest that such times can serve as a launchpad for growth and success.
Championing a community-focused, ownership-oriented approach to business and wealth
Sanchez underlines the importance of a community-focus ...
Here’s what you’ll find in our full summary
Navigating the current economic climate and opportunities
Additional Materials
Counterarguments
- While starting a business may be more accessible, it does not guarantee success; most startups fail within the first few years, often due to lack of experience, insufficient capital, or poor market conditions.
- The idea that wealth multiplication is easily achievable through business ownership may overlook systemic barriers that prevent equal access to entrepreneurship, such as disparities in education, wealth, and social networks.
- The assertion that the economic landscape is fertile for entrepreneurs may not account for the full complexity of economic conditions, including market saturation in certain industries and the competitive disadvantages small businesses face against established corporations.
- Suggesting that economic contractions create significant opportunities might be overly optimistic, as these periods can also lead to increased unemployment, reduced consumer spending, and tighter credit markets, all of which can be detrimental to new and existing businesses.
- The "survival" mindset, while important, might not be sufficient on its own for businesses to thrive; innovation, market demand, and strategic planning are also critical factors.
- The focus on community empowerment and local businesses, while noble, may not always be practical or sufficient for economic growth, especially in areas where local businesses cannot meet the needs or preferences of the community.
- The concept of shared prosperity and collective empowerment, though idealistic, may face challenges in implementation due to individualistic cultural values, competition, and t ...
Actionables
- You can diversify your income by starting a micro-business using existing platforms. For instance, if you have a hobby like crafting, photography, or writing, you could sell products on Etsy, offer stock photos on Shutterstock, or publish e-books on Amazon. This taps into the ease of starting a business and leverages your existing skills without the need for a significant initial investment.
- Engage in barter and trade within your community to strengthen local economic ties. If you're skilled at web design and your neighbor is a plumber, offer to build them a website in exchange for plumbing services. This encourages community empowerment and supports the idea of shared prosperity without requiring monetary exchange.
- Adopt a 'skill-swap' approach to learning and personal developm ...
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