Here’s How To Get Richer Than 94% of People in 2025, According to Codie Sanchez
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Gabrielle Olya
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Molly Sullivan
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Codie Sanchez believes that the key to financial freedom is through business ownership, and she practices what she preaches. Sanchez owns Contrarian Capital, a portfolio of businesses that make millions.
In a recent YouTube video, Sanchez shared her strategies for becoming “richer than 94% of people” in the next year through buying businesses. Here are her top tips for building wealth.
Obsess About Money
Sanchez believes that too many people see money as dirty and something to be hated.
“The reason why most people don’t make any money is because it’s really hard to get a thing that you hate,” she said. “They’re wrong. It’s not bad to go after money, and in fact, I think you should relentlessly chase your first million to the point where everybody else is uncomfortable.”
Money is a powerful tool in today’s world, she said.
“Money is a weapon, and either you’re armed or somebody else is,” Sanchez said in the video. “We should actually obsess over money in some way, shape or form. I think we should obsess about money because it is the only thing that allows you to push back if you … don’t like something that’s happening.”
Buy Cash-Flowing Assets
Cash on its own won’t make you rich — the key is buying assets that create more cash flow, Sanchez said.
“Make sure that you’re one of the less than 30% of the population … that owns assets, because while everybody else’s dollars get deflated away or inflated away, depending on your situation, you guys have assets that grow in value,” she said.
Sanchez noted that owning cash-flowing assets, like businesses, is the reason that the rich keep getting richer.
“We are continuing to see those who own assets and those who have money get more more and more and more,” she said. “We are seeing the really rich get richer and the rest get left behind. The way we push back on that is we own assets that they cannot inflate away.”
Focus On ‘The Profit Triad’ When Choosing Which Businesses To Invest In
Sanchez believes that buying a business is the best investment you can make — but you need to choose businesses carefully. She uses two different rubrics for deciding which businesses to invest in, the first of which is what she calls “the profit triad.”
“It’s what I’ve used to acquire a portfolio worth now hundreds of millions of dollars with tens of companies inside of them, and here’s how it works. You basically need three things,” she said. “You need a business that has a high percentage likelihood of success based on prior industry history, you need one that has a high profit margin and then you need one that is less risky. I want to try to spend as little money upfront to have the highest ROI as I can in the future.”
6 Key Metrics To Evaluate Business Opportunities
The next thing Sanchez does to decide if a business is a good investment is to look at the six key factors that are a good indication of future success.
“You need leverage, you need velocity of capital, Lindy Effect, simplicity, cash on cash return and reoccurring revenue,” she said. “Leverage means as often as possible, you can use other people’s money — not yours. Velocity of capital means, how quickly do you get the money back after you have put it in?
“Lindy Effect is, what is the historical likelihood of a business to stay around based on how long it’s been in the past. Has a business succeeded for the last 20 years? It’s actually more likely to succeed for the next 20,” Sanchez continued. “Simplicity means, is it so simple you can explain it to Grandma? If it is, then it’s an interesting business.
“[Cash on cash return] is, if you spend money, how quickly can you get that money back in your pocket in a way that you can actually put back into the business — not just for you to take home as salary,” she continued. “Then we’ve got reccurring revenue, which basically means, do I have to keep working for every single dollar, or if I get the dollar once, can I have that dollar continue to come to me in some form or fashion?”
Sanchez believes that following these strategies is the key to becoming truly rich.
“If you do what is necessary,” she said, “we all will have the wealth and the freedom that we want.”
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