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The #1 Financial Freedom SECRET Rich People WON’T Tell You! | Codie Sanchez

Today’s guest, Codie Sanchez, will be speaking at SUMMIT OF GREATNESS in 25 days!

Codie SanchezguestLewis Howeshost

Aug 19, 20241h 49mWatch on YouTube

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Transcript

120 min read · 23,762 words

0:00 – 4:45
Intro
1. CSCodie Sanchez
  I don't ever want somebody telling me again that I can't do what I wanna do. I don't wanna feel the control of another human on top of me. Money is freedom. The more money you have, the more you get to exert your will on the world.
2. LHLewis Howes
  What are the things that broke people think they're supposed to do to get wealthy that will never work?
3. CSCodie Sanchez
  Save.
4. LHLewis Howes
  Save.
5. CSCodie Sanchez
  It's never gonna get you to rich. It's way easier to earn more than it is to save everything. Once you learn how to earn, you're unstoppable. Codie Sanchez is an award-winning journalist.
6. LHLewis Howes
  She's the founder of Contrarian Thinking and Unconventional Acquisitions.
7. CSCodie Sanchez
  Amassed millions of followers, and now educates people on the basics of finance.
8. LHLewis Howes
  The wonderful Codie Sanchez.
9. CSCodie Sanchez
  You need to learn to love the game.
10. LHLewis Howes
  Mm.
11. CSCodie Sanchez
  If you wanna make money, you have to learn to love making money, and see it just like you do a scoreboard. You can get to a million working for somebody else, working really hard, but if you wanna go to that $10 million mark, you gotta do something different. Every human in their life has an energy vampire.
12. LHLewis Howes
  Mm-hmm.
13. CSCodie Sanchez
  If you wanna be successful, you have to realize that you are going to leave behind most people.
14. LHLewis Howes
  What would the kinda five, six, or seven-step formula be on going from zero, from broke to millionaire?
15. CSCodie Sanchez
  The very first thing is we say at our company... [upbeat music] [audience cheering] It's been so amazing.
16. SPSpeaker
  Last year was just a transformative, life-changing event.
17. LHLewis Howes
  Team Greatness is great. My name is Lewis Howes. Thanks so much for being here. And before we dive into this special video today, I wanna remind you about the SUMMIT OF GREATNESS, our annual conference happening this September in Los Angeles. With David Goggins, Dr. Joe Dispenza, and many more incredible speakers and performers, there will be so many live attendees there that you can meet with, you can network with, and you can help transform your life. Make sure to click the link in the description to get your tickets, and I can't wait to see you at the SUMMIT OF GREATNESS here in Los Angeles. Before we jump into this video, I wanted to let you know a big announcement. Codie Sanchez is speaking live here in Los Angeles at our annual SUMMIT OF GREATNESS event. If you're looking for the next level of breakthroughs in your life, and specifically in your money and business, make sure to click the link in the description and come live to hear Codie Sanchez, along with David Goggins, Joe Dispenza, and more at the SUMMIT OF GREATNESS. And now, let's jump into this episode with Codie Sanchez. Welcome back, everyone, at The School of Greatness. Very excited about our guest. We have the inspiring Codie Sanchez in the house. Good to see you. Thanks for being here.
18. CSCodie Sanchez
  Thanks for having me.
19. LHLewis Howes
  Yeah.
20. CSCodie Sanchez
  My pleasure.
21. LHLewis Howes
  Very excited about this. You've taken off in the last few years, really about teaching and educating individuals about what I think is financial freedom, and new ways of looking at money and how to earn more in your life. But I'm curious, when was the moment that you believed you were deserving of earning more than what everyone else thinks they, they should be making? Was there a moment or moments where you were like, "I actually believe it's possible to earn more"?
22. CSCodie Sanchez
  Yeah. Well, first it actually started from a moment where I felt the most unlikely, like I would never be able to make enough money. And it wasn't that tragic, but it was, um, I was in college, and I didn't have any money, like all college students don't. And I remember, um, my mom would, like, track my bank account to see how close it was to, to going under, and then she would sort of get on me about anything I bought, would be like, "What are you doing with that? What are you doing here?" And I felt this intense control.
23. LHLewis Howes
  Mm.
24. CSCodie Sanchez
  And I didn't like it. And, um, you know, I was like, "It's my money. I'll do what I want. If I overdraft, it's on me." And that moment, for some reason, was like the little trigger of my little inner rebel. And at that point, I was like, I don't ever want somebody telling me again-
25. LHLewis Howes
  Mm
26. CSCodie Sanchez
  ... that I can't do what I wanna do, and I don't wanna feel the control of another human on top of me. And so for me, money is freedom.
27. LHLewis Howes
  Mm-hmm.
28. CSCodie Sanchez
  And I think it is really your ability to push back on the universe. Like, the more money you have, the more you get to exert your will on the world. And the less money you have, the more you get exerted upon.
29. LHLewis Howes
  Right.
30. CSCodie Sanchez
  And so I didn't like that.
4:45 – 9:25
Overcoming the belief of being "broke"
1. CSCodie Sanchez
  and he had no idea what he was talking about. And I was like, "Oh, that's fascinating, so you're a millionaire," which to me felt like a billion dollars, "and yet you don't understand this thing."
2. LHLewis Howes
  Wow.
3. CSCodie Sanchez
  And if he doesn't-
4. LHLewis Howes
  But what did he understand?
5. CSCodie Sanchez
  Yeah. Well, I don't think I was smart enough then to know that.
6. LHLewis Howes
  [laughs] Right.
7. CSCodie Sanchez
  You know what I mean? I was like, this guy's dumb. And sometimes I think that is a benefit, you know?
8. LHLewis Howes
  I think it is.
9. CSCodie Sanchez
  Almost not realizing that he probably had these other superpowers, and instead being like, well, if he doesn't know that, that means he's not flawless, which means I could probably do it, too.
10. LHLewis Howes
  How old were you then?
11. CSCodie Sanchez
  I would've been 21.
12. LHLewis Howes
  21.
13. CSCodie Sanchez
  Yeah. Before then, I was broke. I was, like, broke. I was always falling in and out of having cash. I was always overdrawing. I was always worried when I would go to swipe the card there wouldn't be enough cash there.
14. LHLewis Howes
  You were stressed out about it.
15. CSCodie Sanchez
  Yeah.
16. LHLewis Howes
  What are the things that broke people think they're supposed to do to get wealthy that will never work?
17. CSCodie Sanchez
  Save.
18. LHLewis Howes
  Save.
19. CSCodie Sanchez
  It's never gonna get you to rich.
20. LHLewis Howes
  Saving money.
21. CSCodie Sanchez
  Mm-mm.
22. LHLewis Howes
  Only saving money.
23. CSCodie Sanchez
  Yeah, you can only save your way to zero, right? You could save your way to, like, not spending anything, I guess, if you don't need to eat or live or have fun. But it's way easier to earn more than it is to save everything.
24. LHLewis Howes
  Mm.
25. CSCodie Sanchez
  And I do think that there is a benefit to the things like the FIRE community and whatever. Spend less, sure, but actually, once you learn how to earn- You're, you're unstoppable. Um, and I don't think anybody becomes unstoppable by saving. In fact, you get very scarcity mindset. It's really hard, I think, to earn like crazy if you're obsessed with saving. Um, and so I actually think those two ideas might be in conflict. It'd be interesting to have a debate with Dave about it because I think, uh, really, really rich people do not think about saving at a 10 to one ratio of earning.
26. LHLewis Howes
  Really?
27. CSCodie Sanchez
  Yeah.
28. LHLewis Howes
  But they're... Are they saving something?
29. CSCodie Sanchez
  Um, yeah, I just don't think they, they think about how can every one of my dollars be more productive?
30. LHLewis Howes
  Uh-huh.
9:25 – 13:58
The Value of Learning and Taking Opportunities
1. CSCodie Sanchez
  It's true. I think the part that people don't realize though is that even if you don't win by hitting your goal, you still win because you're getting paid to learn.
2. LHLewis Howes
  Mm-hmm.
3. CSCodie Sanchez
  And so-
4. LHLewis Howes
  So much
5. CSCodie Sanchez
  ... and so, you know, it's such a huge opportunity to say like, "Hey, are you gonna fire somebody because they didn't hit an extra goal they put on top of them?"
6. LHLewis Howes
  No.
7. CSCodie Sanchez
  Of course not.
8. LHLewis Howes
  But if they're saying, "I wanna try to go for these goals," and if you fail at half of them-
9. CSCodie Sanchez
  Yeah
10. LHLewis Howes
  ... you get some of them, it's like, "Hey, you're ambitious. You're showing you're trying."
11. CSCodie Sanchez
  100%.
12. LHLewis Howes
  It's great. Yeah.
13. CSCodie Sanchez
  Yeah. And, and you're, you're doing the thing that people actually need to do to progress in their career-
14. LHLewis Howes
  Yes
15. CSCodie Sanchez
  ... which is like take the next job before you do the next job.
16. LHLewis Howes
  Mm-hmm.
17. CSCodie Sanchez
  And I don't think enough people do that.
18. LHLewis Howes
  Right.
19. CSCodie Sanchez
  Um, you know, when I was at Sta-
20. LHLewis Howes
  Say that one more time
21. CSCodie Sanchez
  ... not enough people take the next job or do the next job before they get the next job.
22. LHLewis Howes
  What do they try to do instead?
23. CSCodie Sanchez
  Uh, they try to get the next job and get the pay [laughs] before they're actually capable of it.
24. LHLewis Howes
  Uh-huh.
25. CSCodie Sanchez
  Which, which, to be fair, is a terrible thing for you to do often.
26. LHLewis Howes
  Why?
27. CSCodie Sanchez
  Perfect example, I had a guy who came from operations and wanted to t- have a bigger job in marketing, and I gave him that opportunity, but I said, "Hey"-
28. LHLewis Howes
  From a different company?
29. CSCodie Sanchez
  From a same company-
30. LHLewis Howes
  Uh-huh
13:58 – 18:45
Rich vs. Broke Mentality
1. LHLewis Howes
  say are other things that rich people do that broke people don't do?
2. CSCodie Sanchez
  Oof. I mean, rich people do not try to look rich-
3. LHLewis Howes
  Mm
4. CSCodie Sanchez
  ... typically. Really wealthy people do not care about looking rich. Broke people care about looking rich.
5. LHLewis Howes
  Why?
6. CSCodie Sanchez
  It's a signal, right? At a certain point, you know, when you don't have money, you probably don't have a lot of confidence.
7. LHLewis Howes
  Mm.
8. CSCodie Sanchez
  You, uh, probably have a little bit more imposter syndrome. Once you start making a lot of money, you know, there's actually a lot of downside to being rich, [laughs] you know, which is people want it. People want handouts. Pe- the IRS is coming out of your pocket. And so I think at, at a certain point, you start changing your game, and it becomes a lot more important your competence level, how you execute, than just what you wear or show. So care a lot more about being rich than looking rich is a, is a big difference. And the other thing is, you know, rich people trade in knowledge. You know, they typically do not ask for favors. They give favors-
9. LHLewis Howes
  Mm
10. CSCodie Sanchez
  ... because they know that there is a price to asking for things.
11. LHLewis Howes
  Yeah.
12. CSCodie Sanchez
  And broke people do the opposite.
13. LHLewis Howes
  Oh, yeah.
14. CSCodie Sanchez
  They try to take, take, take-
15. LHLewis Howes
  Constantly
16. CSCodie Sanchez
  ... ask too many favors.
17. LHLewis Howes
  Yeah.
18. CSCodie Sanchez
  And I did this wrong, too. You know, when you're young, you're like, "Hey, can I work for you?"
19. LHLewis Howes
  Yeah.
20. CSCodie Sanchez
  "And, and, you know, you could just pay me a little bit."
21. LHLewis Howes
  And teach me everything you know.
22. CSCodie Sanchez
  [laughs] I know. Exactly.
23. LHLewis Howes
  Yeah, yeah. [laughs] It's just like-
24. CSCodie Sanchez
  And you're like-
25. LHLewis Howes
  Can I just be by you all day long and watch you and just, like, I just wanna shadow you for months-
26. CSCodie Sanchez
  Right
27. LHLewis Howes
  ... and take up all your time and resources.
28. CSCodie Sanchez
  Exactly.
29. LHLewis Howes
  Please.
30. CSCodie Sanchez
  And that's what I'd ask.
18:45 – 23:21
The Path to $10 Million Earnings
1. CSCodie Sanchez
  So that, that first 100K, you can do all of that working for somebody else, working really hard. You can get to a million working for somebody else, working really hard on the same things. But if you wanna go to that $10 million mark, you gotta do something different.
2. LHLewis Howes
  What do you need to do differently?
3. CSCodie Sanchez
  Typically, I think you have to get some skin in the game. This is when you have to start earning, not just with your time and brain, but also with your money. So you've gotta invest in something, you've gotta understand deal structuring, you've gotta get a little equity in something, you've gotta become an owner in some way, shape, or form. It could be an owner inside of a business. But you've gotta get some sort of, of upside potential, and I think that is where the, the public school system kind of stops teaching us.
4. LHLewis Howes
  Yeah. They don't teach that at all.
5. CSCodie Sanchez
  No, no.
6. LHLewis Howes
  So what would be the best strategy for someone to get equity in something, whether they're at a career currently or they're looking to start or join something where they could have equity that has big enough earning potential-
7. CSCodie Sanchez
  Yeah
8. LHLewis Howes
  ... to create more?
9. CSCodie Sanchez
  Let me tell you what not to do these days-
10. LHLewis Howes
  Yes
11. CSCodie Sanchez
  ... I think. You know, if you go back and you look at startup employees over the last 10 years, and you look at what their equity options were worth. So you're like fancy, you went to Silicon Valley, you started off with an app, you know, you worked really hard, you took a low salary because you have equity options. Most of those equity options are worthless today.
12. LHLewis Howes
  Wow.
13. CSCodie Sanchez
  They're not worth anything. They're underwater, and maybe one day they eventually will be.
14. LHLewis Howes
  Right.
15. CSCodie Sanchez
  But I think people were sold a dream that they could eat equity, and you can't. You need earnings. And so one what I would say do is, yes, you could maybe be part of the next Facebook, but the likelihood is you're not. And so 90% of the startups fail. So I think we were sold a bag of lies there, and we have to be really careful that we don't bet only on equity. And you know, Chris, my husband, would tell you this. He was at a couple of, of companies where he got equity, but that's not where we made our money. Um, and so realizing that. The second thing I think that people should do, if you wanna get some skin in the game, is the best way to do it is actually get your earnings going and ask to invest alongside. So, you know, this is what private equity and, uh, and private investing firms do. So we basically allow for what's called a club deal. So if you work at a private equity company, you typically can take some of your mon- money that you make from the private equity fund, and you can put it into deals.
16. LHLewis Howes
  Wow.
17. CSCodie Sanchez
  And so I think if you're listening to this, and you're with a company today, try to think about how could you get a piece of maybe not even the company that you work for, of a deal that you bring to the company. And so, like nobody really does this outside of private equity, but you know, if somebody brought you a new ad, uh, sponsor for School of Greatness, and it was a company that's gonna pay you cash, but also is maybe small, right? And so they're up and coming. And they said, "Let's get some equity in this deal, plus, you know, a little revenue share or something from them. If I bring you this deal, if I structure it for you, and maybe even I put in a little money for it, could I have a percentage of the company?" And so this is the great unlock, I think.
18. LHLewis Howes
  Mm.
19. CSCodie Sanchez
  That once normal everyday people start understanding this, they can get equity while being employed, which is, I think, the best thing to do because it's hard to get enough money being an entrepreneur, uh, to invest in other things.
20. LHLewis Howes
  Yeah.
21. CSCodie Sanchez
  Most entrepreneurs have all our money tied up in our business.
22. LHLewis Howes
  What is the mindset that people need to start thinking about in order to choosing the right opportunities?
23. CSCodie Sanchez
  Yeah.
24. LHLewis Howes
  Because 10, 12 years ago, you know, I, I read Four Hour Work Week, maybe it was 15 years ago. I don't know. And it was all about like investing in startups.
25. CSCodie Sanchez
  Mm.
26. LHLewis Howes
  And I think I invested in like seven or eight startups, right? I didn't make money on any of those, and they were all come from credible resources. Other people were investing in them also that I trusted. It wasn't like it was just some random pitch deck.
27. CSCodie Sanchez
  Yep.
28. LHLewis Howes
  It was like, "Okay, there's, there's opportunities out there." None of them paid me anything, and it took so much of my time and energy to like get on calls with people and help them and promote stuff. Now, as an education that I gained from it, but I didn't-
29. CSCodie Sanchez
  Yeah
30. LHLewis Howes
  ... create wealth.
23:21 – 27:47
Investing in Cash Flowing Businesses
1. CSCodie Sanchez
  -
2. LHLewis Howes
  Yeah
3. CSCodie Sanchez
  ... in this environment. So that is for people who already have so much money that they can throw some chips on the table, just like at the casino, with the knowledge that 90% won't work. If I was young Codie again, what would I do? I would be investing in cash flowing businesses and deals.
4. LHLewis Howes
  Right.
5. CSCodie Sanchez
  And so instead of going and doing the crazy startup app, say, "Hey, why don't we own this vertical that we do business with right now? Hey, you know, let's go in on an Airbnb for when our employees are traveling back and forth, and I could help manage the Airbnb for when our employees are traveling back and forth. We get rid of some of the costs that we have from flying people and putting them up in hotels, but simultaneously we own a cash flowing asset that has real value today."
6. LHLewis Howes
  Mm.
7. CSCodie Sanchez
  "So we own a little equity in it, but we also own the cash flow, and we can get a portion of it."
8. LHLewis Howes
  Right
9. CSCodie Sanchez
  And it's, it's so technical and sometimes I think people get overwhelmed with these ideas. But if you just start thinking this one sentence, which is, "Cash flow is king-
10. LHLewis Howes
  Mm-hmm
11. CSCodie Sanchez
  ... and I don't invest in hopes and dreams, I invest in realities and revenue."
12. LHLewis Howes
  [laughs] Right.
13. CSCodie Sanchez
  Right?
14. LHLewis Howes
  Yeah.
15. CSCodie Sanchez
  That's what I do until I've made so much money that I'm like, "No, now I need... I can't do the same thing that got me to that first million."
16. LHLewis Howes
  Right, right, right.
17. CSCodie Sanchez
  Now I gotta do something else to get-
18. LHLewis Howes
  Yeah
19. CSCodie Sanchez
  ... to 10 and 100. And it's not gonna be-
20. LHLewis Howes
  Wow
21. CSCodie Sanchez
  ... Airbnbs probably.
22. LHLewis Howes
  I mean, you've mastered the researching aspect and investing aspect in these kind of boring businesses. What would you say are three to five best cash flowing businesses if someone wanted to get into it today?
23. CSCodie Sanchez
  Yeah. Um, well, there's lots of ways to look at this. I think the first thing that I like to look at is what are the businesses that have the lowest failure rate with the highest potential for you to make money? So let's start there. And if we look at the numbers, that's why I started with laundromats, it's like a 90% success rate-
24. LHLewis Howes
  Mm
25. CSCodie Sanchez
  ... with laundromats. They don't fail as often, they've been around a long time, they don't cost a ton of money. They don't make you a ton of money.
26. LHLewis Howes
  They don't make a lot either, right?
27. CSCodie Sanchez
  No.
28. LHLewis Howes
  You're not getting-
29. CSCodie Sanchez
  But they're simple
30. LHLewis Howes
  ... you're not making millions.
27:47 – 32:44
Maximizing Earnings through Business Investments
1. CSCodie Sanchez
  me? I'll put up the cash, I'll find the deal, but you run this thing."
2. LHLewis Howes
  Right.
3. CSCodie Sanchez
  No different really than you buying an Airbnb-
4. LHLewis Howes
  And having a property manager
5. CSCodie Sanchez
  ... and putting a property manager in there.
6. LHLewis Howes
  But you make less money in that, that-
7. CSCodie Sanchez
  Exactly
8. LHLewis Howes
  ... cash flow. So you're, you're not managing the ti- you're not doing the time, but you make less money as well.
9. CSCodie Sanchez
  Yeah, that's true. Theoretically, you make less money on that one deal. But the idea is how can you become good at doing deals so you can do more of them?
10. LHLewis Howes
  Right.
11. CSCodie Sanchez
  You know, typically people who are in real estate don't just own one house. Same thing with business. You could own multiple laundromat locations.
12. LHLewis Howes
  Mm-hmm.
13. CSCodie Sanchez
  You could own the laundromat. I mean, we have one business that we just [censored] and giggles said, "Okay, how can we turn one business into 11 income streams?" And I was like, "All right."
14. LHLewis Howes
  How, how'd you do that?
15. CSCodie Sanchez
  Laundromat starts. Secondary line of revenue, really passive. What would that be? Okay, vending machines. Let's put those on location. Third, uh, why don't we add wash and fold so we can have a different revenue-
16. LHLewis Howes
  Upsell, charge for that
17. CSCodie Sanchez
  ... little inside of it. Exactly. Fourth, what if we add vending inside that's like soaps and, um, you know, uh-
18. LHLewis Howes
  Detergents and-
19. CSCodie Sanchez
  ... detergents, softeners, et cetera. Next one, why don't we do pick-up and delivery? Okay, additional. Next one, why don't we do commercial? Can't we do, you know, when everything else is closed, can't we also go to some of the local hotels, clean their stuff? Okay, maybe. Next, why don't we buy another laundromat? And so now we have two locations on side of them, and then let's also put vending and all these other things on theirs. So you kinda can stack up your income streams in one business, and that's how you go from a laundromat that makes $67,000 a year to one that makes 3 million, which our biggest one at the time did about $3 million in revenue.
20. LHLewis Howes
  Wow.
21. CSCodie Sanchez
  Lot more work, but a bigger business.
22. LHLewis Howes
  If you have, let's say you have between 250 and $500,000 that you can invest in something.
23. CSCodie Sanchez
  Mm-hmm.
24. LHLewis Howes
  And someone is thinking about real estate, any type of real estate investment versus the stock market-
25. CSCodie Sanchez
  Yeah
26. LHLewis Howes
  ... versus starting or buying a business, what would you do with that 200 to $500,000 today to try to maximize earnings, cash flow-
27. CSCodie Sanchez
  Mm-hmm
28. LHLewis Howes
  ... long-term equity, but also you're gonna work hard, but not spending all your time on that thing?
29. CSCodie Sanchez
  Yeah, yeah. It's a great question.
30. LHLewis Howes
  What, what would be, you know, r- some type of real estate investment, some type of stock investment, or some type of buying a business investment?
32:44 – 37:16
When to Buy a Franchise
1. CSCodie Sanchez
  a business before, ever.
2. LHLewis Howes
  But buying a franchise has systems, marketing, operations-
3. CSCodie Sanchez
  Exactly
4. LHLewis Howes
  ... a, a blueprint-
5. CSCodie Sanchez
  Yep
6. LHLewis Howes
  ... that is successful already.
7. CSCodie Sanchez
  That's right. And so in my mind, here's where you don't wanna buy franchises. You don't wanna buy franchises if they're like a flash in the pan. Like no offense, Crumbl Cookie, right? It's, like, really expensive, like a million dollar build-out, plus, like, cookies. I don't know, here today, gone tomorrow, right?
8. LHLewis Howes
  Right.
9. CSCodie Sanchez
  Um-
10. LHLewis Howes
  Which is, you gotta sell a ton of them.
11. CSCodie Sanchez
  Yeah. Orangetheory, like really hot. Now who goes there, right? I don't wanna play that game. I wanna play a game where I have a boring business with recurring monthly revenue that people are gonna need forever. And so when we started thinking about it, we were like, okay, there are three types of people. There are people who have never done a business before, and they need some hand-holding, and they have cash, but they have less than, like, a million bucks, right? For those people, probably a trade services franchise makes sense. Systems and processes, boring business, more resistant to recessions. Cool. You should do something like window cleaning, pressure washing, painting, and you can layer on top of a infrastructure and system. That's the first type of person. Second type of person is maybe like, "Hey, I've managed some teams before. I think I know how to run a P&L. I like the risk associated with running my own business, so I'm gonna buy a business. I'm gonna do it outright. I'm gonna do it my way, 'cause I'm kind of unemployable. I don't wanna do anything with a franchise."
12. LHLewis Howes
  Right, right, right.
13. CSCodie Sanchez
  Right? And then the third to me is the person who's like, "I really am open to risk, and because I'm open to risk, I'm gonna do a startup. I know I'm gonna make no money. I know that, like, for three to five years I'm gonna have to pay-
14. LHLewis Howes
  Mm
15. CSCodie Sanchez
  ... to make money-
16. LHLewis Howes
  Yeah
17. CSCodie Sanchez
  ... until eventually maybe someday I'll make money." And all three of those types are totally fine. You just need to know which one you're at.
18. LHLewis Howes
  Wow.
19. CSCodie Sanchez
  You know?
20. LHLewis Howes
  And so if someone wanted to launch a business, is it all based on their own skillsets then, what they already have? Or is it better to go buy something and apply your skills towards that business that's already making money?
21. CSCodie Sanchez
  I'm very biased, but to me, you know, the average startup in the US doesn't make money ever. The average-
22. LHLewis Howes
  [laughs] Right
23. CSCodie Sanchez
  ... [laughs] they really don't.
24. LHLewis Howes
  It's true. Yeah.
25. CSCodie Sanchez
  Uh-
26. LHLewis Howes
  They fail.
27. CSCodie Sanchez
  Yeah, I mean, 90% of startups fail. Um, the most businesses, only 10% of businesses make it to a million dollars a year in revenue. 0.4% of businesses ever make it to, to $10 million in revenue. The, the odds are not stacked in your favor. So I'm kind of a math junkie from my days on, on Wall Street and in finance, and so I look at those numbers and I'm like, "Ugh, I don't like that." I don't like a 10% chance of making a million dollars. Why? A million dollars is a lot. 'Cause the average small business has margins of 15 to 30%. So if you're making a million dollars-
28. LHLewis Howes
  You're really not making much at the end of the day
29. CSCodie Sanchez
  ... no, you're making 150 to $300,000 a year.
30. LHLewis Howes
  Then you got taxes on that.
37:16 – 41:48
The Risks of Startups and Buying Businesses
1. CSCodie Sanchez
  when you buy a business... And why? Why is that? Why do banks not loan to startups? Because they're-
2. LHLewis Howes
  'Cause they're risky
3. CSCodie Sanchez
  ... because they're gonna fail 90% of the time. They don't loan to 'em. Why do banks loan for buying businesses? Because they have models that show them that they have a higher likelihood of success.
4. LHLewis Howes
  Yeah. And they have a track record.
5. CSCodie Sanchez
  And so-
6. LHLewis Howes
  Yeah
7. CSCodie Sanchez
  ... right. So I say, you know, buying a small business, I think your likelihood of failure is somewhere between 10 and 30%, as opposed to if you start a small business, your likelihood of failure is the opposite of that.
8. LHLewis Howes
  Yeah
9. CSCodie Sanchez
  Let's call it 60 to 90%.
10. LHLewis Howes
  Right
11. CSCodie Sanchez
  And either way is fine, but you just need to know the odds of the game you're playing, right? You don't go to the slot machine and go, "I can't eat today, I better play slots," you know?
12. LHLewis Howes
  [laughs]
13. CSCodie Sanchez
  Right? Same with startups.
14. LHLewis Howes
  Sure, sure. So if you got 100, let's say 100 to 200 grand right now, um, and you wanted to go buy a business, I don't know if you... what you'd get for a franchise for that, but you wanted to buy some of those small business in your town-
15. CSCodie Sanchez
  Yeah
16. LHLewis Howes
  ... what would you be looking at?
17. CSCodie Sanchez
  Well, the cool part about, let's say you have even 50 to $200,000, the cool part is that, in my opinion, is you don't wanna use just your own cash. What we like to do is use seller financing or creative financing methods.
18. LHLewis Howes
  How does that work?
19. CSCodie Sanchez
  Yeah. Well, 60% of all businesses are sold using seller financing, which basically means that, you know, if you wanted to sell School of Greatness, you'd probably have a hard time selling it without saying, "Hey, uh, Codie, you could take over this business. Look at this podcast, this big huge YouTube channel. I want X for it. Um, but because you probably can't get a loan on this business, um, how about I let you buy the business for," I'm gonna make up the numbers, so we'll just be fake here. "But you buy the business for a million dollars, and since the business makes, I don't know, $500,000 a year profit, then that means why don't I pay you, uh, why don't you pay me over three years for that million dollars? So that's 500, 500, 500 a year, and that allows us to get to the million bucks. Plus you get to buy the business using the profits of the business." And that's seller financing.
20. LHLewis Howes
  Yeah
21. CSCodie Sanchez
  And it's very normal. And my mission is kinda like, I think we have so many middlemen in the world that eat away our profits.
22. LHLewis Howes
  Mm.
23. CSCodie Sanchez
  The middleman is a bank. The middleman is the pers- is the, is the person telling you that you need them in order to do a transaction. You don't. We can be our own banks-
24. LHLewis Howes
  Wow
25. CSCodie Sanchez
  ... in many instances
26. LHLewis Howes
  Wow. How does someone have the knowledge or the courage to do that?
27. CSCodie Sanchez
  Well, that's why we started Contrarian Thinking, because I realized in private equity, I was like, "Wait a second, I can just buy a business like myself. I don't have to be at the firm. Like I could just go out here and do this deal." That was foreign to me after being in, in, you know, investing for 10 years. So when I started doing it, I was like, "Wait a second, there is no difference really between like $100 million deal I'm doing with a private equity firm and a million dollar deal I'm doing by myself. The difference is just size." And so I started buying businesses myself and thinking, "God, more people should know how to do this. It's just like real estate."
28. LHLewis Howes
  What would be, if someone's like, "Okay, there's a laundromat down the street from me that I love-
29. CSCodie Sanchez
  Uh-huh. Uh-huh
30. LHLewis Howes
  ... that I go to or whatever, that I see that everyone's always there."
41:48 – 46:29
The 10 Steps to Buying a Business
1. CSCodie Sanchez
  a business with seller financing. First step is you gotta understand the opportunity's there, so we've already done that. We call that the foundation. Second step is deal clarity. What's a good business for Lewis? What's a good business for Codie? We have all these worksheets we run people through.
2. LHLewis Howes
  Mm-hmm.
3. CSCodie Sanchez
  Third step is selling you. How do you convince a seller that you're worthy to be their buyer? Fourth step is called origination, which is finding the business. How do we find somebody that wants to sell? Fifth step is financing.
4. LHLewis Howes
  Mm.
5. CSCodie Sanchez
  What are all the ways that we can get loans, et cetera? Sixth step is negotiation. How do we negotiate a good deal, a bad deal?
6. LHLewis Howes
  Mm-hmm.
7. CSCodie Sanchez
  Seventh step is structuring So how do we learn the terms that define money, like warrants, options, you know, payback period? Eight, we are gonna talk about your deal docs. So how do we close these underlying deal docs? Nine, we're gonna talk about due diligence. How do we make sure they're not lying to us?
8. LHLewis Howes
  Yeah.
9. CSCodie Sanchez
  How do we make sure we're really looking at the right thing here? And then 10, how do we close the business, make sure it's done correctly and properly with all the right transferring of information and money, et cetera. And then your first 90 days. You bought a business, congrats.
10. LHLewis Howes
  Now what? [laughs]
11. CSCodie Sanchez
  Now you got work to do. [laughs] Yeah.
12. LHLewis Howes
  Now you're all excited and, oh, there's problems, more problems than you thought.
13. CSCodie Sanchez
  Exactly, yeah. And so, um, those are the 10 steps that we teach and that you need to know if you wanna buy a business.
14. LHLewis Howes
  Was there ever a business you bought after you went through all these and you did your due diligence that actually was better than you thought it would be after buying it?
15. CSCodie Sanchez
  Oh, yeah.
16. LHLewis Howes
  Really?
17. CSCodie Sanchez
  More, happens more often than not.
18. LHLewis Howes
  Really?
19. CSCodie Sanchez
  Yeah, at least for us. I mean, a good example is, or the... I have recency bias 'cause we just did this deal, but we bought the company ResiBrands, and, um, we did a really big transaction. We-
20. LHLewis Howes
  A lot of cash
21. CSCodie Sanchez
  ... a lot of cash.
22. LHLewis Howes
  A lot of money.
23. CSCodie Sanchez
  Lots of time under the hood kind of looking at it.
24. LHLewis Howes
  Due diligence, a lot of, like, back and forth.
25. CSCodie Sanchez
  Yeah, and I'm putting my brand behind it, so I'm like, "God," you know, "Lord, help me if these guys end up being bad-
26. LHLewis Howes
  Ooh
27. CSCodie Sanchez
  ... and then my audience uses them, and what if, what if they're not good? What if they don't execute well?" And we got under the hood, and we were like, "Not only are these brands incredible, but the operator who's running them is just a very high integrity human, you know, family guy, extremely hardworking, and works harder than we do." And so we got under the hood and we're like, "Oh, man, we're gonna make way more money than we thought we were, and this business is going to be really great on fulfillment," which is what I care about 'cause it's my reputation.
28. LHLewis Howes
  Wow.
29. CSCodie Sanchez
  So that happens a lot.
30. LHLewis Howes
  But was that before you bought it or after you bought it?
46:29 – 51:07
The Worst Business Deal
1. CSCodie Sanchez
  the, the worst deal I ever did was a deal that not only ruined a friendship, um, but, you know, was really hard on my marriage with, with Chris and I, because it was somebody we both knew.
2. LHLewis Howes
  Oh.
3. CSCodie Sanchez
  And it wasn't that much money we lost, but it was enough to be annoying, and then we had, we had to clean up a bit of a mess.
4. LHLewis Howes
  Mm.
5. CSCodie Sanchez
  And so w-
6. LHLewis Howes
  Relationship mess. Yeah.
7. CSCodie Sanchez
  Relationship mess. It's-
8. LHLewis Howes
  And it was a business deal?
9. CSCodie Sanchez
  It was a business deal, but here's the difference. A lot of people say, "Don't do business with family and friends." Chris and I have a line, which is, um, "You don't want business from friends. You want friends from business." And so a great red flag indicator is does this person seem to want something from me right away, or do they wanna be friends with me because we're in business together?
10. LHLewis Howes
  Yes, yes.
11. CSCodie Sanchez
  And so if, if, you know, if you're starting to get close to a deal, and they're like, "Hey, how am I gonna get paid? What's gonna ha-" That's like, oh, okay. You just, you want into my business.
12. LHLewis Howes
  Mm-hmm.
13. CSCodie Sanchez
  You don't wanna be friends in business together. And, um, so I'm very cough- cautious on that yet. And, and also the more successful you get, the more insulated I think you need to be.
14. LHLewis Howes
  Yes.
15. CSCodie Sanchez
  Like, you know this well.
16. LHLewis Howes
  Smaller circle.
17. CSCodie Sanchez
  Smaller circle, you know, no new friends.
18. LHLewis Howes
  Mm-hmm.
19. CSCodie Sanchez
  And people have to prove themselves to you first.
20. LHLewis Howes
  Yeah. Can't just open up everything to everyone.
21. CSCodie Sanchez
  No. A- And, and I think, you know, we have a time constraint now. Like, we don't even consider doing business with people that we haven't known for more than a year-
22. LHLewis Howes
  Yeah
23. CSCodie Sanchez
  ... well.
24. LHLewis Howes
  Yeah.
25. CSCodie Sanchez
  Because it's hard to hide who you are for a year.
26. LHLewis Howes
  Right. [laughs]
27. CSCodie Sanchez
  You know?
28. LHLewis Howes
  Yeah, yeah.
29. CSCodie Sanchez
  Um-
30. LHLewis Howes
  And it's hard to hang out... It's hard to invest time with someone for a year too.
51:07 – 55:49
Aligning Personal Growth in a Relationship
1. CSCodie Sanchez
  a game where it's like, what role are we playing, you know? And so my role in a lot of instances right now is I'm like the big, let's go after it, let's look at these big huge things, and then he kinda looks at the downside of them. And then in our venture fund, he brings me a lot of different ideas, and I, he calls me Captain No, because I don't like any startup. [laughs]
2. LHLewis Howes
  [laughs]
3. CSCodie Sanchez
  And so it, it, you know, we...
4. LHLewis Howes
  Yeah, yeah.
5. CSCodie Sanchez
  And then we don't fight 'cause we know we're both p- playing a role.
6. LHLewis Howes
  Uh-huh.
7. CSCodie Sanchez
  It's preordained.
8. LHLewis Howes
  Wow. What are the questions you guys talked about before getting married around money, or conversations you wish you would've had before getting married around money?
9. CSCodie Sanchez
  Yeah. Um, well he... I, I was married previously, um, and then, you know, got divorced. And so when [laughs] when we first got together, people are gonna be like, "She's a psychopath." But, uh, I remember we did a whiteboarding session, and it was actually more about what do you want out of life?
10. LHLewis Howes
  Uh-huh.
11. CSCodie Sanchez
  It wasn't so much money, because money's a byproduct of action, and money's a byproduct of vision, I think. And so I, in my last marriage, he wasn't a bad guy or anything. Like, I wish him well. We are different. We want different things from life. Um, and but what I realized is like, I want this big, huge, abundant, crazy life that's stressful and, um, requires a ton of work.
12. LHLewis Howes
  And chaotic in moments, yeah.
13. CSCodie Sanchez
  Exactly. And, um, I wanted to see if Chris wanted that same thing. And so we basically sat down and I said, "I want you to tell me, like what does our life look like in one, three, five, 10 years? Like, kind of play it out." So I think we eventually went for like three years and 10 years, and we wrote that out. And I said, "What does our life look like with kids? What does our life look like with money? How much are we worth? You know, what do we, what does our day-to-day look like? Where do we live?" And we did it from a place of fun, so we were kinda like... And then we came and saw, like where do we overlap? And we do this every year. We do goal-setting every year together on New Year's. Um, and we go to a cool destination and we think about what does the next year look like? Because one of the things that he taught me too is don't tell me what you want, tell me what you're willing to sacrifice to get it.
14. LHLewis Howes
  Mm.
15. CSCodie Sanchez
  And so if we had this big vision, you can't go, "Hey, I wanna make $100 million this year, and travel all year, and take a bunch of vacation-
16. LHLewis Howes
  Yeah, and learn a new language
17. CSCodie Sanchez
  ... and relax."
18. LHLewis Howes
  And yeah, yeah.
19. CSCodie Sanchez
  No, it's not, it's not gonna work. And so we have to agree on the sacrifices.
20. LHLewis Howes
  Yeah.
21. CSCodie Sanchez
  And that was really, really important, and I didn't do that in my first marriage. In fact, when we were getting divorced, I did it. I was like-
22. LHLewis Howes
  Really?
23. CSCodie Sanchez
  ... "I think we're moving in different directions. Let's write down what we want." And you know, he was like, "Well, I want what you want." And I was like, "I don't think you do."
24. LHLewis Howes
  Mm.
25. CSCodie Sanchez
  And so we, we sat and wrote them down and they were different. And, and they were materially different. And neither was wrong, we just didn't go into the marriage with our eyes wide open.
26. LHLewis Howes
  Yeah. And it doesn't mean it can't work in some ways if you have, want different things, but you have to be aligned and accepting of the other person's vision-
27. CSCodie Sanchez
  Right
28. LHLewis Howes
  ... in the relationship as well.
29. CSCodie Sanchez
  That's exact- that's exactly right.
30. LHLewis Howes
  Yeah.
55:49 – 1:01:02
Red flags for women in relationships
1. CSCodie Sanchez
  What emasculates a man is your attitude and your actions and are you big-timing him? Are you making him feel less than? Are you defining him only by his monetary worth?
2. LHLewis Howes
  Mm.
3. CSCodie Sanchez
  Men are not meant to just be providers monetarily. What about protectors?
4. LHLewis Howes
  Mm-hmm.
5. CSCodie Sanchez
  You know? What about your, uh, you know, you're human, you travel through time together. What about somebody that you really respect their opinions on? What about-
6. LHLewis Howes
  Of a high integrity and, yeah.
7. CSCodie Sanchez
  Oh, yeah. What about the future, you know, father of your children and what that means? And I think the reason why we're having problems with women who say, "Hey, I make all this money," and men aren't interested, it's like are you just playing the victim? And is that the easiest thing for you to say? What if your story was different? What if your story was instead, "I make a ton of money and it's incredible because I get to be a partner to somebody. I don't get to be a cost center. Now I'm a profit center, and we get to do all the other fun things."
8. LHLewis Howes
  Right.
9. CSCodie Sanchez
  But I think a lot of women, because we define men by how much money they make, of course they don't wanna be with somebody who makes more than them because they go, "Oh, now you're worth more than I am as a human?"
10. LHLewis Howes
  Interesting.
11. CSCodie Sanchez
  And so I push back really hard on that. I don't think that's true and I think men have just been with women who are kinda jerks about making too much money.
12. LHLewis Howes
  Mm.
13. CSCodie Sanchez
  You know? And who only wanted that definition. If you met Chris back in the day, I mean, Navy SEALs aren't millionaires.
14. LHLewis Howes
  No.
15. CSCodie Sanchez
  They don't pay well at the government, but he never defined himself by how much money he made. He was like, "Are you kidding me? I'm a top 1% protector in the world."
16. LHLewis Howes
  Wow.
17. CSCodie Sanchez
  You know?
18. LHLewis Howes
  That's a pretty big turn-on.
19. CSCodie Sanchez
  Yeah, 100%. Same with you.
20. LHLewis Howes
  But not every, not everyone's a Navy SEAL like Chris, right?
21. CSCodie Sanchez
  Yeah.
22. LHLewis Howes
  And so not everyone has that level of mastery, skill set-
23. CSCodie Sanchez
  Yeah
24. LHLewis Howes
  ... you know, athletic and sexual prowess that he just walks around and oozes, right? So [laughs]
25. CSCodie Sanchez
  Oh, my gosh. That's gonna be this big. [laughs]
26. LHLewis Howes
  But there's a lot of men that don't have that value-
27. CSCodie Sanchez
  Yeah
28. LHLewis Howes
  ... that skill set, you know? What, what maybe he didn't earn from the government financially-
29. CSCodie Sanchez
  Yeah
30. LHLewis Howes
  ... he, you know, multiplied in other ways and skills that are, that take decades to learn.
1:01:02 – 1:05:26
Tradwife and Cat Patio Builders
1. CSCodie Sanchez
  red flag turn-off is- I, you know, Chris and I have, we believe in strength-based relationship, which is basically Chris is incredible chef. He's like s- and he really, when I cook, is like, "I wish you wouldn't, you know, a little bit less [laughs] of that would be awesome."
2. LHLewis Howes
  What's the definition of strength-based relationships?
3. CSCodie Sanchez
  You do the things that you are uniquely skilled at and great at in the relationship, and you don't expect to be defined by traditional gender roles-
4. LHLewis Howes
  Mm
5. CSCodie Sanchez
  ... in any way, shape, or form.
6. LHLewis Howes
  Mm-hmm.
7. CSCodie Sanchez
  And so we're really honest, like I am-
8. LHLewis Howes
  But whatever your best role is-
9. CSCodie Sanchez
  Right
10. LHLewis Howes
  ... you do that role.
11. CSCodie Sanchez
  Right. And so, um, for instance, you know, I like to clean and take care of the house and everything. That's, that's my role. I'm really aggressive on it. He really likes cooking and buying all the food and the groceries, and I think we're kinda getting to this weird period now where, um, you know, there's like this trad wife movement. There's this man being a man thing, and at least for the two of us-
12. LHLewis Howes
  What is a Chad wife? What is that?
13. CSCodie Sanchez
  Trad wife. Have you-
14. LHLewis Howes
  Trad wife, what is this?
15. CSCodie Sanchez
  You haven't been on the Internet lately?
16. LHLewis Howes
  I don't know.
17. CSCodie Sanchez
  Oh my gosh.
18. LHLewis Howes
  I only, I only consume positive content.
19. CSCodie Sanchez
  That's probably too... So well trad wife is-
20. LHLewis Howes
  Trad wife?
21. CSCodie Sanchez
  ... traditional wife. So it's like-
22. LHLewis Howes
  Oh, okay. Trad wife
23. CSCodie Sanchez
  ... you've probably seen this, like they're the women and they like speak really softly, and then they're like baking a bread in like an outfit. You haven't seen this-
24. LHLewis Howes
  Okay
25. CSCodie Sanchez
  ... on the Internet, in the kitchen? [laughs]
26. LHLewis Howes
  [laughs] I mean, I've seen like-
27. CSCodie Sanchez
  You have a different algorithm?
28. LHLewis Howes
  I've seen like-
29. CSCodie Sanchez
  I'll send you some
30. LHLewis Howes
  ... I've seen like cooking content, but not like-
1:05:26 – 1:10:12
Creating Impactful Offline Businesses
1. LHLewis Howes
  that are like window washing, painting, or whatever it might be. You know, a carpenter building cat patios is an offline thing, but if you can document, record, and showcase your trade skill-
2. CSCodie Sanchez
  Yep
3. LHLewis Howes
  ... I don't care if you're a trad wife making bread-
4. CSCodie Sanchez
  Yeah
5. LHLewis Howes
  ... or if you're a catio guy building patios, if you can do it in a specific creative way that's engaging, you can earn a lot of money.
6. CSCodie Sanchez
  Oh, totally. I mean, I think what we do with a lot of our businesses, that's the future. If you right now have a business that's a service business, so a catio guy would be a great example, it's just called productizing your service. And so a catio business by itself doing one-off builds-
7. LHLewis Howes
  Yes
8. CSCodie Sanchez
  ... not a great business.
9. LHLewis Howes
  No. It takes time, energy.
10. CSCodie Sanchez
  Takes too much time, custom RFP, different every time, non-repeatable, non-scalable. What is scalable about it, though? Maybe you do those custom builds. You document it all on Instagram and TikTok with the cool individual customization, but then you productize it. So then you have-
11. LHLewis Howes
  How do you productize it? You're selling cat toys. You're selling cat food.
12. CSCodie Sanchez
  Exactly.
13. LHLewis Howes
  You're selling cat insurance, whatever.
14. CSCodie Sanchez
  You create a little, you know, cat climbing thing-
15. LHLewis Howes
  Toy. That's your custom thing
16. CSCodie Sanchez
  ... that's yours that you drop ship to other people-
17. LHLewis Howes
  Oh, interesting
18. CSCodie Sanchez
  ... or that you do e-commerce with.
19. LHLewis Howes
  Right.
20. CSCodie Sanchez
  You know, you sell merch, and so I think it's, you know, in, in our businesses, we consider a business that's one-time revenue transactional, like a catio business, to be not a great business. So immediately what we would do-
21. LHLewis Howes
  Like window washing.
22. CSCodie Sanchez
  Yeah. We wouldn't do that business unless we added a, uh, monthly recurring. So-
23. LHLewis Howes
  Mm. Subscription.
24. CSCodie Sanchez
  Exactly. So whether that's in window washing land, uh, you're not gonna be able to do that very easily on residential, but commercial you can. Every single commercial building-
25. LHLewis Howes
  Subscription
26. CSCodie Sanchez
  ... has a monthly process where people come and they clean their windows, sometimes even biweekly.
27. LHLewis Howes
  Right.
28. CSCodie Sanchez
  So you automatically create a productized service that is the same and repeatable every single time, and that just gives you a higher multiple so you could sell your business for more later.
29. LHLewis Howes
  Right. But why would people do that business when- You could do a digital business-
30. CSCodie Sanchez
  Yeah
1:10:12 – 1:15:00
The Importance of Genuine Friendships
1. CSCodie Sanchez
  feels like they do not have real friends.
2. LHLewis Howes
  I was with a buddy of mine last night, a guy that I recently have hung out with through the gym actually, and, uh, he wanted to go to, to dinner with me and Matt, my COO, who's my best friend for the last 20 years. This guy's worth over $100 million, exited a massive company. You know the company. Um, and at the end of the conversation, I go, "Do you have one guy friend that you can open up to like you've opened up to us? 'Cause, 'cause I'm gonna have dinner with someone. I'm gonna really go deep with them."
3. CSCodie Sanchez
  Yeah.
4. LHLewis Howes
  I go, "Do you have one male friend that you can speak like this to who's like in your corner?" 'Cause he has tons of acquaintances.
5. CSCodie Sanchez
  Of course.
6. LHLewis Howes
  Tons of people he knows.
7. CSCodie Sanchez
  Yep.
8. LHLewis Howes
  Like, "Do you have one person?" And he goes, "No." And this is a guy who's got over $100 million, who's exited a massive company, who's knows everyone-
9. CSCodie Sanchez
  Yep
10. LHLewis Howes
  ... but doesn't have one close friend he can truly open up to.
11. CSCodie Sanchez
  Yep.
12. LHLewis Howes
  And he's in his... He's our age, right? He's not, you know, in his 20s. And I think a lot of people struggle with that. Why do you think... What'd you say? It was one in three?
13. CSCodie Sanchez
  Yeah.
14. LHLewis Howes
  Why do you think one in three, you know, Gen Zs don't feel like they have a friend they can truly be open and honest with?
15. CSCodie Sanchez
  Gen- I, I think that generation hasn't gone through something really hard with another person yet. I, I think the, the statement of iron sharpens iron is real, and so when I see my husband's friends from being in war together-
16. LHLewis Howes
  Oh, yeah
17. CSCodie Sanchez
  ... and going through the military together, there is no topic off limits. And if I ever needed something, I get the residual effects of their difficulty, their chosen difficulty. I think these days everybody wants to talk about, you know, the trauma that they've gone through in life, but what's even more powerful is like what trauma did you choose?
18. LHLewis Howes
  Mm.
19. CSCodie Sanchez
  When did you choose hard, you know, and choose the hard thing regardless of whether it would benefit you or not? And so, um, I think Gen Z, if you're... You know, if I was going back to young Codie, I'd say choose something really hard.
20. LHLewis Howes
  Mm.
21. CSCodie Sanchez
  Choose something really hard with a few other humans, and you will never, you'll never let go of those people-
22. LHLewis Howes
  Yeah
23. CSCodie Sanchez
  ... because you've chosen hard together. So that's one. For the people who are really successful, I think what happens is you get insulated by success, and so I'm sure we've all seen this. You, you... You know, how did Rome fall? It was surrounded by yes-men, you know? Caesar was surrounded by yes-men and sycophants who would want something more than the betterment of that human.
24. LHLewis Howes
  Mm.
25. CSCodie Sanchez
  And so I think one of the things we try to be really careful on is do we surround ourselves with people who will constantly disagree with us, and where there's no... It's friends from business, not business from friends.
26. LHLewis Howes
  Yeah.
27. CSCodie Sanchez
  And, um, and those relationships are deep. Arthur Brooks is incredible. Have you had him on yet?
28. LHLewis Howes
  I haven't had him on yet, but-
29. CSCodie Sanchez
  Oh, God, he's s-
30. LHLewis Howes
  The happiness guy, right? The Harvard happiness guy.
1:15:00 – 1:19:40
Keeping Receipts for True Friends
1. LHLewis Howes
  "Okay, I've got a book. If you're open to sharing a tweet, you know, that's cool." You know, whatever it might be.
2. CSCodie Sanchez
  Yep, yep.
3. LHLewis Howes
  It's like how can I give? And I remember thinking, "Man, I gave to so many people that didn't even just check in on me."
4. CSCodie Sanchez
  Yeah.
5. LHLewis Howes
  And I remember being very hurt by that. This was like, I don't know, five, six years ago. And I remember thinking after kind of the dust settled and I was like, you know, less sad, I remember thinking, thinking to myself, [clicks tongue] "Gosh, in like three to four years, I bet a lot of these people are gonna come back and ask for something from me. And I'm gonna keep receipts."
6. CSCodie Sanchez
  [laughs] I was-
7. LHLewis Howes
  You know? I'm gonna keep receipts.
8. CSCodie Sanchez
  Yeah.
9. LHLewis Howes
  And it was so funny 'cause I remember like four years later, all these people started texting me, and I remember kept seeing like the last message was four or five years prior-
10. CSCodie Sanchez
  Oof
11. LHLewis Howes
  ... right, of any contact.
12. CSCodie Sanchez
  Oof.
13. LHLewis Howes
  And they started texting me, "Hey, hope, how you doing? Hope you're doing well." And I remember thinking, "When's the ask?"
14. CSCodie Sanchez
  Who's coming next? Yeah.
15. LHLewis Howes
  When's the ask? And I swear to God, it was like dozens of people all around the same time. And I just kept being like, "Hey, hope you're doing well." You know, really neutral. And then a few texts later, a few days later, "By the way, can I get a, a quote for my book? Can you promote me? Can you have me on your show?"
16. CSCodie Sanchez
  Yep.
17. LHLewis Howes
  They saw me continue to grow and explode, and they were like, "Oh, this'll be a great opportunity to leverage something from him."
18. CSCodie Sanchez
  Yep.
19. LHLewis Howes
  I tell you what, the best thing that can happen in your life is going through controversy or some type of like confusion where friends question you-
20. CSCodie Sanchez
  Yep
21. LHLewis Howes
  ... 'cause then you really figure out who your friends are.
22. CSCodie Sanchez
  Yeah.
23. LHLewis Howes
  And it made me, I was very naive before then-
24. CSCodie Sanchez
  Yeah
25. LHLewis Howes
  ... thinking like, "Oh, of course people are just gonna understand me," or, "It's all good." But it made me get really clear to like tighten my circle to people that are only in my corner-
26. CSCodie Sanchez
  Yep
27. LHLewis Howes
  ... and not expanding my circle and just giving to everyone.
28. CSCodie Sanchez
  Ah, it's, it's-
29. LHLewis Howes
  And it's been a game-changer.
30. CSCodie Sanchez
  It's so true. We, Chris and I always talk about we believe in choosing sides.
1:19:40 – 1:24:11
The Suckiness of Hate on the Internet
1. LHLewis Howes
  'Cause then they'll lose engagement, views, likes, followers, all these things.
2. CSCodie Sanchez
  Yeah, and, and-
3. LHLewis Howes
  Money
4. CSCodie Sanchez
  ... and hate on the Internet does suck.
5. LHLewis Howes
  It does suck.
6. CSCodie Sanchez
  It sucks. But, um- At least for Chris and I, it's like I wanna know kinda where I stand. He's actually really good at this. He immediately catches on and I go, "We're all friends. I'm like the golden retriever."
7. LHLewis Howes
  I wanna be friends with everyone.
8. CSCodie Sanchez
  Yeah, yeah. He's the opposite.
9. LHLewis Howes
  But you can't be that way.
10. CSCodie Sanchez
  No, you can't.
11. LHLewis Howes
  You can be friendly.
12. CSCodie Sanchez
  Yeah.
13. LHLewis Howes
  But you can't let everyone into your life.
14. CSCodie Sanchez
  Yeah. And then I think I've helped him realize, you know, he a lot used to think that you have to... He would give, uh, he's like you. He gives and gives and gives and gives, and then he'd get sad if he didn't get it back.
15. LHLewis Howes
  'Cause you think everyone's gonna act like you.
16. CSCodie Sanchez
  Right.
17. LHLewis Howes
  But most people wanna take.
18. CSCodie Sanchez
  That's right, and I don't actually expect anybody to give it back. I sort of, I don't do anything that I, that I think I wouldn't do if they weren't gonna do X for me.
19. LHLewis Howes
  Uh-huh. Yeah.
20. CSCodie Sanchez
  Um, I just go, "Do I wanna do this for this person? Yes or no?" And then it, it's done.
21. LHLewis Howes
  Uh-huh.
22. CSCodie Sanchez
  I have no emotional weight on it from it.
23. LHLewis Howes
  For me, it's when I'm, I wanna give, but then someone, all they wanna do is keep asking.
24. CSCodie Sanchez
  Oh, then you... Those are the worst. Those are-
25. LHLewis Howes
  As opposed to even just saying, "Hey, is, is there anything I can support you with?" Like, you don't even, you know, I don't even need the support.
26. CSCodie Sanchez
  Yeah.
27. LHLewis Howes
  But just offering it-
28. CSCodie Sanchez
  Oh, yeah
29. LHLewis Howes
  ... at some point down the line. It doesn't have to be right now, like favor for favor. I don't need that, but just being like generous with your wanting to see me win too.
30. CSCodie Sanchez
  Oh.
1:24:11 – 1:29:13
Fear of Failure and Regrets
1. LHLewis Howes
  Yes.
2. CSCodie Sanchez
  [laughs]
3. LHLewis Howes
  I mean, the things that you and Chris wrote down this l- you know, six months ago during-
4. CSCodie Sanchez
  Yeah
5. LHLewis Howes
  ... New Year's Eve. I wanna have this type of business, this type of wealth, this type of lifestyle, this type of success-
6. CSCodie Sanchez
  Yeah
7. LHLewis Howes
  ... this type of following, of actually hitting those things, which I believe you will.
8. CSCodie Sanchez
  Yeah.
9. LHLewis Howes
  What is your insecurity or fear of being that successful?
10. CSCodie Sanchez
  I don't have a security, insecurity or fear about being that successful. I have an insecurity and fear about failing. What if I can't do the things that I wanna do, and what if I s- talk all this big game and then I can't actually follow through? My fear is the thing we talked about in the beginning. Sometimes I don't say the quiet part out loud because I'm like, "If people know how bad I want this, when I don't get it, they'll know that I'm not good enough."
11. LHLewis Howes
  Mm.
12. CSCodie Sanchez
  You know? And like I wanted it and I couldn't do it, and that's scary. It's actually why when I did sports, I had a really hard time mentally getting over being, like, the, the, the one person that everybody had to rely on. So, like, you know, at the end of the game, you know, match breaking point in a volleyball game, that was really hard for me. I think athletes have incredible mental resilience because they have that, you know, you win or you lose. That's it. There's no gray, and that was hard for me to get over for a long time.
13. LHLewis Howes
  Really?
14. CSCodie Sanchez
  Yeah. And so that's, that's my biggest fear is, like, what if I don't accomplish everything that we wanna accomplish?
15. LHLewis Howes
  What if you don't?
16. CSCodie Sanchez
  Yeah.
17. LHLewis Howes
  Then what?
18. CSCodie Sanchez
  I haven't thought it through. [laughs]
19. LHLewis Howes
  What's the, what's the worst thing that could happen if you don't accomplish your biggest dreams?
20. CSCodie Sanchez
  Um, yeah, pr- I mean, I immediately go to the irrational, which is like, we'll probably be homeless, we'll lose all our money, everybody'll hate us. Uh, they'll realize I was never good enough anyway. Those are, like, the dark-
21. LHLewis Howes
  Mm.
22. CSCodie Sanchez
  You know, the dark thoughts.
23. LHLewis Howes
  But who cares about those people?
24. CSCodie Sanchez
  Yeah, that seems rational. I'm just not that rational [laughs] about it. It's like, uh, one of the things that's driven me for most of my life, and so it's- it's a fuel, I think, in a way.
25. LHLewis Howes
  Let's- let's do it the other way.
26. CSCodie Sanchez
  Okay.
27. LHLewis Howes
  You achieve all those goals.
28. CSCodie Sanchez
  Yeah.
29. LHLewis Howes
  100 million, billions, whatever it is.
30. CSCodie Sanchez
  Yeah.
1:29:13 – 1:34:11
Regrets and Goals for the Future
1. LHLewis Howes
  Whether you accomplish everything or not, what will be your three biggest regrets?
2. CSCodie Sanchez
  Hmm. Um, well, I really wanna have kids, so we're working towards that. I think we're both share- shared in that. Um, I would regret if I didn't get a chance to have the full human experience-
3. LHLewis Howes
  Yeah
4. CSCodie Sanchez
  ... of having kids.
5. LHLewis Howes
  Of being a mother and having kids.
6. CSCodie Sanchez
  Yeah.
7. LHLewis Howes
  Yeah, yeah.
8. CSCodie Sanchez
  Um-
9. LHLewis Howes
  But you're working on that, so-
10. CSCodie Sanchez
  Yeah
11. LHLewis Howes
  ... God willing that-
12. CSCodie Sanchez
  God willing
13. LHLewis Howes
  ... that happens soon. Yeah.
14. CSCodie Sanchez
  Um, so that, for sure.
15. LHLewis Howes
  Okay, that's one.
16. CSCodie Sanchez
  And then I think the second part of that would be, like, how do we do with them, you know? Are they capable? Can they handle themselves in the world? I would regret if we didn't try to be the best parents we could-
17. LHLewis Howes
  Mm-hmm
18. CSCodie Sanchez
  ... in some way. And then, you know, three, my biggest regret would be, I do- I want to make sure at some point, um, both Chris and I write, like, for fun too. We write a lot of stuff that I think is highly valuable at this stage. Like, I want to give instructions for young Codie to financial freedom. But at some point, I wanna write ridiculous things just 'cause I want to. So that's something I wanna do in the next five or so years.
19. LHLewis Howes
  What would it look like to do it sooner?
20. CSCodie Sanchez
  More work right now. [laughs]
21. LHLewis Howes
  [laughs] But writing something fun and silly doesn't seem like work. It seems like fun and silly.
22. CSCodie Sanchez
  One book at a time, Lewis.
23. LHLewis Howes
  It doesn't have to be a book.
24. CSCodie Sanchez
  That's true. That's true.
25. LHLewis Howes
  Why can't it just be a, a page, a, a post-
26. CSCodie Sanchez
  Yeah
27. LHLewis Howes
  ... uh, you know?
28. CSCodie Sanchez
  No, that's, that's very true.
29. LHLewis Howes
  A little kid, 10-page book. It doesn't have to be some massive-
30. CSCodie Sanchez
  I've thought about a children's book
1:34:11 – 1:39:01
Knowing When You've Mattered Enough
1. LHLewis Howes
  have done enough. I have enough. I am enough." And listen, he's in a different season, a different stage of life. We're, you know, not at that season yet. We're in this building growth phase. But that's why I was kind of asking you when would you feel like you've mattered enough?
2. CSCodie Sanchez
  Yeah.
3. LHLewis Howes
  And would you feel like if you died today that you didn't matter?
4. CSCodie Sanchez
  Yeah. No. And I'd be, like, pretty happy if I died today. Like, I feel-
5. LHLewis Howes
  Yeah
6. CSCodie Sanchez
  ... before I met Chris, maybe not. I think finding a partner in love was-
7. LHLewis Howes
  Yeah
8. CSCodie Sanchez
  ... more important to me than I realized. Um, but I wouldn't have a lot of regrets with the time that I've had thus far, thank- thankfully. Um, surely there are many mistakes I've made, but not exactly that. You know, it makes me think, uh... I've always been a big Bill Murray fan. Maybe he would be one of the podcast guests that I would love to have. And we got to go to this unique experience. My friend Gavin did this little town, like a Bill Murray town, and they basically, he reached out to Bill and asked Bill to come to this event, and it would be about Bill's whole life.
9. LHLewis Howes
  Wow.
10. CSCodie Sanchez
  And, um, each of the little houses had different stories that have been told about Bill, and then Bill wrote on these stories, like, his truth, like what he actually saw happened. And so you walked around this town, and there were all these Bill Murray stories and images and paraphernalia from him. And then Bill showed up, which was weird. And as Bill does, 'cause he's such an enigma, you know, just showed up by himself, kinda walking around, checking everything out. And people were pretty respectful. They, like, hung back from him. There was only a couple hundred people there. And, um, and as I was watching all of his stories, what I so loved was that he, to your point, I think embodies that I am enough and I've done enough. You know, no cell phone, uh, that people can reach him on, a landline with, uh, a me- voicemail that he sometimes listens to, uh, sometimes doesn't. No handler, no assistant. Shows up or doesn't show up when he wants to or doesn't want to. And I do think, um, there's something really beautiful about a human who knows whatever the limit is for them.
11. LHLewis Howes
  Right. Right. He doesn't have to keep chasing more fame or movies or money or whatever it might be, right?
12. CSCodie Sanchez
  Yeah. And, uh, yeah.
13. LHLewis Howes
  Not saying that you're chasing something. You're trying to build and be of service and add value.
14. CSCodie Sanchez
  Yeah. Well, and you know when to go.
15. LHLewis Howes
  Yeah.
16. CSCodie Sanchez
  I think that's also a beautiful portion.
17. LHLewis Howes
  Uh-huh.
18. CSCodie Sanchez
  I mean, in this world today, there's a lot of people who hold onto power and they don't wanna let go.
19. LHLewis Howes
  Yeah.
20. CSCodie Sanchez
  And, and we can tell. You know? There's a few really prominent examples [laughs] right now-
21. LHLewis Howes
  [laughs]
22. CSCodie Sanchez
  ... of when it's time to go.
23. LHLewis Howes
  Yeah.
24. CSCodie Sanchez
  And, um, how can you go off into the sunset with a little grace?
25. LHLewis Howes
  Yeah.
26. CSCodie Sanchez
  Um, but I think it's really hard to understand until you're a little bit older. Like, when you're in your 20s, you're listening to us right now, you're like, "What are they talking about? I just need more money."
27. LHLewis Howes
  Yeah.
28. CSCodie Sanchez
  "A little bit more sex."
29. LHLewis Howes
  More girls.
30. CSCodie Sanchez
  "Some love."
1:39:01 – 1:43:54
The Importance of Chasing Money
1. LHLewis Howes
  your content, and I think it's hard to do that well on social media in an authentic way, and you do a great job of it. So you and your team are all doing a great job.
2. CSCodie Sanchez
  Thanks.
3. LHLewis Howes
  And so people need to follow you there.
4. CSCodie Sanchez
  Yeah, I to- I've only danced in one TikTok video ever, and I regret it.
5. LHLewis Howes
  Oh, shoot.
6. CSCodie Sanchez
  I'm sure you can find it on the Internet somewhere.
7. LHLewis Howes
  I've danced in a couple.
8. CSCodie Sanchez
  [laughs]
9. LHLewis Howes
  But I don't, I don't regret it. I'm, I don't know if I'll do many more.
10. CSCodie Sanchez
  You're good at dancing.
11. LHLewis Howes
  But I'm like, "Eh, what am I doing?" You know?
12. CSCodie Sanchez
  No more of the-
13. LHLewis Howes
  It's kinda fun
14. CSCodie Sanchez
  ... pointing, you know-
15. LHLewis Howes
  Exactly
16. CSCodie Sanchez
  ... arrows.
17. LHLewis Howes
  Exactly.
18. CSCodie Sanchez
  Yeah, no, I don't play that game.
19. LHLewis Howes
  Um, couple final questions for you, Codie.
20. CSCodie Sanchez
  Yeah, tell me.
21. LHLewis Howes
  What do you wish more people asked you that they don't ask you?
22. CSCodie Sanchez
  Hmm. Um, I wish more people wanted to know specifically about, um... This is a little bit of a, a tougher area for people to talk about, but I think we should talk a little bit more about the fact that chasing money is good, and I wish people would say like, "Why do you think it's so good to go after money?" And we don't talk about that enough 'cause I think people think that money is bad in many instances, it'll lead you to bad things. But, uh, in my opinion, you should chase your first $500,000 relentlessly. I do think that life gets easier and you are statistically happier after $500,000, we now know, and it's okay to chase that at first. I think it's important that you don't get addicted to that forever, but I wish more people were like, "Why is it okay for people to obsess on money for a period?" And I think, you know, there's been no better system of pulling people out of poverty and thus unhappiness than capitalism across the globe. It is an imperfect system, but the only one that functions, and I think we've got to tell this next generation that it is there for their benefit.
23. LHLewis Howes
  Hmm.
24. CSCodie Sanchez
  It is flawed, but it is the best system we have, and I think we have to push back on, on, uh, on socialism and on communism. They are failed systems that have never worked.
25. LHLewis Howes
  Mm-hmm.
26. CSCodie Sanchez
  And it's not that fun to talk about that because kids are sold a lot of ideas these days.
27. LHLewis Howes
  Yes, yes.
28. CSCodie Sanchez
  But money is okay. It is a tool for freedom, and I, I think we should push back on the idea that communism is actually good for you. It's not.
29. LHLewis Howes
  Right. Why should people chase making money versus chase adding value?
30. CSCodie Sanchez
  Ooh, that's a, that's a great, uh, differentiator. Only... Here's the only caveat I have. You can add a lot of value in charity work. The problem is, I think, as Jeff Bezos said, you're probably better off going and becoming rich and independent first because then you have a much bigger opportunity to do more charity. It's the Jordan Peter-ism, which is, uh, is, you know, clean your room before you clean up the world, and I think a lot of times because we have these idealistic big ideas in a world that's full of abundance at the time, the peak time to be an American of all time, we think, "Well, let's go save the world-"
1:43:54 – 1:48:49
Leaving Behind Three Truths
1. LHLewis Howes
  but for whatever reason, you have to take all of your content with you.
2. CSCodie Sanchez
  Hmm.
3. LHLewis Howes
  So all the books you create, all the businesses you create, all the... This interview, anything you've ever posted online or in the digital verse in the future, it's gone after your last day. So no one has access to your content anymore that you've shared, your wisdom. But on this final day, you get to leave behind three lessons.
4. CSCodie Sanchez
  Hmm.
5. LHLewis Howes
  And that's all we have to r- to remember your content by. I call it the three truths. What would those three truths be for you?
6. CSCodie Sanchez
  I think the very first one is- You can't teach desire. And so if nothing else, go find the people who have it and serve them, and go be the person who has it.
7. LHLewis Howes
  Mm.
8. CSCodie Sanchez
  You can't teach desire. My dad taught me that. Um, the second is that, uh, tell the truth even when it's inconvenient. It's easier to remember.
9. LHLewis Howes
  Mm-hmm.
10. CSCodie Sanchez
  Um, my dad also taught me that. And the third, uh, is write your own bible. So what are the words you want to live by? Nobody else has to write it for you, and, uh, Chris and I do that. We have the rules that we live by.
11. LHLewis Howes
  Mm.
12. CSCodie Sanchez
  And, uh, and it helps when you have a hard question. You just go, "Well, what are the rules?"
13. LHLewis Howes
  Yeah.
14. CSCodie Sanchez
  And can I go back to that?
15. LHLewis Howes
  That's interesting.
16. CSCodie Sanchez
  You know what Chris and I did once, that I don't know if you've ever done? We wrote... It was like, this is so mushy, I can't believe I'm about to say this on the Internet. But, um, we both sat down and we wrote, I think it was before he went on depl- his last deployment. We wrote out, um, if we were, we knew we were gonna die, we had one day left, what would our final day look like? And we took a book right about that size, so not very big, and each of us got a page, and we wrote down every single thing we would do on that page. And first of all, you know, by the end of it I'm, like, crying, he's crying, everybody's has, has allergies. And it was so simple, like, the things that that day was comprised of. You know, it was like wake up early in the morning, you know, go get a coffee and a donut together and go, like, on a walk with our dog. Like, surf the perfect set together, blah, blah, blah. And it was a really good reminder of your point of if you had very limited time left, what would that day look like?
17. LHLewis Howes
  Yeah, what's a perfect day look like?
18. CSCodie Sanchez
  Yeah. And it, that was it. That was all we wrote, and then we went and lived that day, and it was beautiful. And we try to go back to that list so often and live that day every so often, and, um, and I thought it was a really cool practice to do, you know, with a loved one.
19. LHLewis Howes
  That's beautiful.
20. CSCodie Sanchez
  Have you and Martha ever done anything like that?
21. LHLewis Howes
  In my first book I wrote, I have an exercise called the perfect day exercise.
22. CSCodie Sanchez
  [laughs] Shut up.
23. LHLewis Howes
  That is essentially-
24. CSCodie Sanchez
  That's hysterical.
25. LHLewis Howes
  Yeah, yeah. 20- what was it? 2015 this book came out, and I have a whole chapter on the perfect day exercise that is kind of two parts, because some people can vision their perfect day, but then it's like on the backside of the page of writing it out, of expressing it and emoting how it would feel, taste, senses-
26. CSCodie Sanchez
  Yeah
27. LHLewis Howes
  ... the experience, the backside you actually make a calendar. Like, from the moment you wake up, every 30 minutes what happens, and then fill that in, and try to repeat that every day.
28. CSCodie Sanchez
  Yeah.
29. LHLewis Howes
  And you're not gonna be waking up in, you know, the coast of Italy or something every day-
30. CSCodie Sanchez
  Yeah
1:48:49 – 1:49:04
Unlocking Success in Business
1. SPSpeaker
  and you gotta learn, learn how to lead. So you gotta learn how to get people to give you money for stuff, gotta have the stuff to sell them, and then you gotta have people that work on your side to help deliver on those other two. If you can do those three things, you're unstoppable. And if you do one of those three things, you can make as much... Like, you can still make a ton-

Episode duration: 1:49:04

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Intro

Overcoming the belief of being "broke"

The Value of Learning and Taking Opportunities

Rich vs. Broke Mentality

The Path to $10 Million Earnings

Investing in Cash Flowing Businesses

Maximizing Earnings through Business Investments

When to Buy a Franchise

The Risks of Startups and Buying Businesses

The 10 Steps to Buying a Business

The Worst Business Deal

Aligning Personal Growth in a Relationship

Red flags for women in relationships

Tradwife and Cat Patio Builders

Creating Impactful Offline Businesses

The Importance of Genuine Friendships

Keeping Receipts for True Friends

The Suckiness of Hate on the Internet

Fear of Failure and Regrets

Regrets and Goals for the Future

Knowing When You've Mattered Enough

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