Podcast Summary: BigDeal Episode - "The Harsh Truth: Why You’ll NEVER Make Money!"
Host: Codie Sanchez
Release Date: October 22, 2024
Introduction: Challenging Conventional Financial Wisdom
In this compelling episode of BigDeal, Codie Sanchez dives deep into the often overlooked and harsh realities of making money. She critiques the current economic system, emphasizing that despite increasing productivity, wages have stagnated, leaving many financial institutions like the Fed and major banks ineffective in genuinely helping individuals grow their wealth. Codie sets the stage by urging listeners to distrust these big institutions and instead, place their trust in themselves.
1. The Relationship with Money
Codie begins by exploring the fundamental relationship individuals have with money. She highlights a startling statistic: 46% of all Americans die with less than $10,000 to their name. This underscores a systemic issue where despite efforts to earn, many never truly "touch" money.
Notable Quote:
"Our relationship with money and the way we think about it is fundamentally flawed." [02:15]
2. Trust Yourself Over Institutions
Challenging the reliance on financial institutions, Codie emphasizes the importance of self-trust in financial success. She argues that trusting oneself is paramount because institutions often fail to deliver promised financial growth.
Notable Quote:
"Don't trust the big institutions, don't trust Wall Street, don't trust the banks. It comes down to trusting yourself." [03:45]
3. The Power of "Why"
A central theme in Codie's discussion is the significance of having a strong personal "why". She explains that a compelling "why" can drive individuals to overcome the challenges associated with making money.
Notable Quote:
"The hardest thing about getting money is that we don't have a why strong enough to overcome the how." [06:30]
She shares a personal anecdote about a business associate who pressured her by equating financial failure with personal loss, illustrating how a powerful "why" can heighten the likelihood of success.
4. Speaking the Language of Money
Codie introduces the concept of "the language of money", comparing it to learning a new language. She asserts that to become financially fluent, one must engage in practical money-related activities, such as deal-making and negotiations.
Notable Quote:
"Learning the language of money is akin to becoming fluent in a new language through practice and real-world application." [12:10]
She encourages listeners to actively participate in financial transactions to build their monetary fluency, differentiating between theoretical knowledge and practical engagement.
5. Compounding and Skill Stack
Highlighting the often-underestimated power of compounding, Codie explains how small, consistent improvements can lead to significant financial growth over time.
Notable Quote:
"Compounding isn't just about money growing; it's about how every bit of growth stacks upon itself to create exponential wealth." [18:45]
Additionally, she discusses the importance of valuing and growing one's skill stack. Codie posits that increasing the value of one's skills is directly correlated with financial success, using her mother's experience in real estate as an example.
6. The Five-Step Process to Making Money
Codie outlines a five-step process essential for financial success, especially for those starting with limited resources:
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Work Harder Than Expected
- Quote: "Harder means longer hours, harder means more intense application." [25:20]
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Work Longer Than Expected
- Enduring beyond typical work hours to achieve exceptional results.
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Value and Grow Your Skill Stack
- Continuously enhancing skills to increase personal value in the marketplace.
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Take More Risks Than Reasonable
- Embracing risk is crucial; without it, significant financial gains are unlikely.
- Quote: "Most people don't succeed because they never take risks." [31:10]
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Build and Leverage a Network
- Developing meaningful connections can open doors to opportunities that propel financial growth.
7. Inversion Thinking
Codie introduces inversion thinking as a strategy to avoid financial pitfalls. By focusing on what one does not want (e.g., poverty, excessive work hours), individuals can better navigate their path to wealth.
Notable Quote:
"Inversion thinking allows you to clarify your desires by first understanding what you absolutely do not want." [35:50]
She advises listeners to create a list of undesirable outcomes and use it to prioritize their financial goals effectively.
8. The Pareto Principle (80/20 Rule)
Exploring the Pareto Principle, Codie explains that 20% of actions drive 80% of results. She urges listeners to identify and focus on the most impactful activities that contribute significantly to their financial goals.
Notable Quote:
"Identify the 20% of your efforts that yield 80% of your results and focus intensely on those." [40:30]
Codie provides practical examples, such as prioritizing high-value tasks over trivial ones to maximize productivity and financial gain.
9. Overcoming Obstacles and Changing Surroundings
Addressing common barriers to financial success, Codie emphasizes the necessity of changing one's environment. She argues that evolving beyond familiar settings and relationships is crucial for personal and financial growth.
Notable Quote:
"To achieve high-level success, you must surround yourself with others who have already achieved what you aspire to." [45:00]
She shares her own experiences of leaving her hometown to expand her horizons, reinforcing the idea that new environments foster new opportunities.
10. Compounding Personal Growth
Codie ties back the concept of compounding to personal development, advocating for continuous self-improvement. By striving to get 1% better each day, individuals can experience significant growth over time.
Notable Quote:
"Applying the magic word of 1% better every day can lead to remarkable transformations through compounding." [50:15]
She illustrates this with her personal goals for the year, demonstrating how focused, incremental improvements contribute to overarching financial and personal achievements.
Conclusion: Embracing Hard Truths for Financial Freedom
Codie wraps up the episode by reiterating the importance of embracing harsh truths about making money. She encourages listeners to accept discomfort, take decisive actions, and cultivate a strong personal "why" to achieve true financial freedom.
Final Quote:
"If you want financial freedom, stop making excuses and start taking control with the skills and strategies that truly matter." [56:40]
Key Takeaways
- Self-Reliance: Trusting oneself is more crucial than depending on financial institutions.
- Strong Motivation: A compelling "why" drives financial success.
- Financial Literacy: Actively engaging in financial activities builds monetary fluency.
- Skill Enhancement: Continuously improving skills increases value and earning potential.
- Focused Efforts: Prioritizing high-impact actions leads to greater financial results.
- Risk and Networking: Embracing risks and building a robust network are essential for wealth accumulation.
- Continuous Improvement: Incremental personal growth compounds into significant financial gains.
This episode of BigDeal serves as a wake-up call, challenging listeners to rethink their approach to money and adopt actionable strategies for genuine financial success. Codie Sanchez delivers her insights with honesty and practicality, making this episode a valuable resource for anyone serious about transforming their financial future.