Why You Can't Spell Rich Without Risk - The Millionaire Path Revealed | Codie Sanchez

0:00I have a brand new book called Make Money Easy. and if you're looking to create more financial freedom in your life, you want abundance in your life and you want to stop making money hard in your life, but you wanna make it easier, you wanna make it flow, you wanna feel abundant, then make sure to go to makemoneyeasybook.com right now and get yourself a copy. I really think this is gonna help you transform your relationship with money this moment moving forward. We have some big guests and content coming up. Make sure you're following and stay tuned to this episode of The Daily Motivation Show.

0:38Hi, my name is Lewis Howes and welcome to The Daily Motivation Show.

0:50What is the personality type do you think that is for starting or buying a business versus a personality type that is not for owning a business? Yeah. Well, I don't think you can spell rich without risk. And so if you really want richness in your life, like if you want to be very, very rich, you are not going to get there if you take no risk. Unfortunately, I've never seen it done that way. Maybe you guys could tell me if I'm wrong. So, and if you want to get rich, here's the stats. One thing that's cool stat, 79 % of all millionaires in the US are self-made. That number shocked me. Because if you heard in the news, you'd think, no, no, no, it's all handed down.

1:29But 60 % of all millionaires own a business. So you immediately know, well, I have a 60 % higher likelihood of becoming a millionaire if I own a business. And if I want to make crazy levels of money, like$30 million plus, 88 % of people who are worth$30 million plus own a business. So first, you've got to be honest with yourself. What do I really want? If I want to be a millionaire, and if I want to be worth$10 million plus, hard to get there without having some version of ownership or equity. And taking risk and working your butt off nonstop. 100%. Like, I giggled because another YouTube video did a video of me, and it was like, make millions.

2:06It's easy. No work. Who's the title? Passive. I was like, I'm pretty sure I've never said that in my life. How many hours do you think you work a week? Oh, a lot. I mean, when I was in finance, I was working 70, 80 hours a week. I remember one of my colleagues, Eduardo, we were walking back from a, we were in New York at the time, and we were walking back from work one day, super late at night, and he just passed out in the middle of the road. And I was like, holy hell, Eduardo, are you okay? You know, what's going on? And he just, he was exhausted. It was like passing out from exhaustion. Working 80-hour weeks for years, probably.

2:43Yeah, and he was young. So analyst program, I was only there for like two years. He would have been about the same. But just that compounding plus, you know, it's a work hard, play hard environment. And that was an employee job. You were an employee. But you were making a lot of money as an employee. But that was what it took to put in the time, to have a skill set at the right business, to be able to deliver results, to get that type of income. It took you 78 hours a week. Yeah, for sure. So you can't do it with like 40 hours a week, just kind of casually showing up and expect like multiple six figures.

3:12I don't think so. Do you know any business that's paying someone to just do the bare minimum? No, unless you are the capital. That's where you start. Unless you have the money. Unless you got the money. Then I have many businesses that I do no work for now. Right, right, right. But that's because I did rent. I put money down. And you can lose it all. And I could lose it all. And the only way you get around that is you work really hard as an employee for somebody else and you get a percentage of the company. which is something that we do for our employees and I think really important. But you got to become valuable enough to do it.

3:43How valuable do you need to be? How much do you need to be earning for that business, like bringing in for that business? Well, there's two ways that you can actually get equity in businesses that we learned in private equity that I think are useful for people. The first way is you can ask to buy in. So you can say, hey, I don't have a lot of cash, but we're going to do this deal over here. Could I put$10 ,000 into this business deal? You know, hey, you're going to do this partnership. Could I like buy into the partnership for 10K? And we're not taught how to do that as normal people. And we should think that way.

4:15Because what is that telling me? That's like, hey, you're willing to put a little risk on the table. And also you're not trying to sell me that you should get XYZ entitlement. You're saying, let me put some skin in the game. That's the worst. Right. So that's, and that's how most private equity guys make their first dollars, is they are just allowed to put some skin in the game, which is great. And then the second way is you become so valuable that the business can't see itself operating without you. And this is typically how startups do. So it's like, hey, you know, you're so valuable. You're going to do the first stage of XYZ of the company.

4:47Because of that, we're going to give you a percentage. And every single year, you'll get a little bit more of that percentage over like three to five years. So two ways to get a percentage of a deal. And we teach one in the book called partial acquisitions. And so basically if right now you're working, like let's say somebody's working for you or me, right? And if you're working for a company right now today and you love what you do and you want to stay there, but you want to get some income on the side. You have a skill set. You're a photographer. I don't know. You're a videographer. Then what could you do?

5:18You could go to other companies that need your skill set and you could say, hey, if I can increase the revenue of your business, If I could decrease the costs of your business or I could decrease your pain of the business, could I get a percentage of the business? And you could do that both for distributing equity. That's where you cash flow or regular equity. This is what I'm teaching a lot more people to do because there's a stair step way to buy a business. Maybe you're not ready to go all in. We'll learn how to get a small percentage instead. Yeah. Yeah. So if you're not a personality type that doesn't like risk.

5:53Yeah. You shouldn't be a business owner. Not outright. Not outright. I don't think you're going to want the call on a Friday night when you're going to run out of cash.

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