Making Money Work for You

The most valuable skill in life:

Learning how to make money work for you.

• I've bought 25+ boring businesses
• Managed $100M+ funds
• Invested in 50+ startups

Here's the framework that drives it all:

— Codie Sanchez (@Codie_Sanchez) June 15, 2023

I call it the LEIDDR framework:

Learn
Earn
Invest
Diversify
Divest
Repeat

Here's a visual breaking down the framework ↓ pic.twitter.com/fujvJ78YXz

— Codie Sanchez (@Codie_Sanchez) June 15, 2023

Step 1: Learn

People overcomplicate financial basics.

Learn:

• How to utilize debt
• How to leverage taxes (esp. as a SMB)
• How to read income + cashfow statements

— Codie Sanchez (@Codie_Sanchez) June 15, 2023

Then, establish the correct money principles:

• Never discount. Compete on value, not price.

• Your price isn't too high. Your perceived value is too low.

• Don't conform blindly to the norm

— Codie Sanchez (@Codie_Sanchez) June 15, 2023

Step 2: Earn

Negotiating your salary will be your greatest driver toward wealth at first.

Here's how my path to $100k looked:

• Vanguard
Offer: $35k
Starting: $37.5k
Ending: $60k

• Goldman
Offer: $60k
Starting: $75k
Ending: $150k

— Codie Sanchez (@Codie_Sanchez) June 15, 2023

Understand the main skills that will 3x your income:

• Negotiation
• Delegation and operations
• Decision-making on deals

— Codie Sanchez (@Codie_Sanchez) June 15, 2023

Step 3: Invest

There's no better teacher than being in the arena.

I remember I was burnt on a few early deals.

For each mistake I made, I've never made it again.

Early scars are valuable.

— Codie Sanchez (@Codie_Sanchez) June 15, 2023

My biggest early investing lessons:

• Apply the Pareto principle to deal searching
• Understand good v. bad debt
• Focus on high ownership on 1-2 deals v. low ownership on 8-10.

— Codie Sanchez (@Codie_Sanchez) June 15, 2023

Step 4: Diversify

The people buying biz's are the same ones:

• Earning with a W2
• Doing side projects
• Keeping some $ in stocks
• Owning & renting real estate

Continue to search for different opportunities to create leverage.

— Codie Sanchez (@Codie_Sanchez) June 15, 2023

I practice diversification in everything:

• My LP contributions to managers
• My SMBs across a variety of industries
• My content on different platforms

— Codie Sanchez (@Codie_Sanchez) June 15, 2023

Step 5: Divest

You can't perpetually add to your plate.

So you have one job as CEO:

Fire yourself from as many roles as you can.

— Codie Sanchez (@Codie_Sanchez) June 15, 2023

The ultimate goal:

Grow your investments, then exit at a higher multiple.

A few thoughts here on operations with an exit in mind:https://t.co/q1TBDQKRXV

— Codie Sanchez (@Codie_Sanchez) June 15, 2023

Step 6: Repeat

The most important part.

The best investors leverage feedback loops.

They can clearly map what inputs lead to what outputs.

— Codie Sanchez (@Codie_Sanchez) June 15, 2023

After every investment:

• Track key metrics
• Schedule 1:1s with operators + founders

Look to be tapped into what makes every decision click.

— Codie Sanchez (@Codie_Sanchez) June 15, 2023

That's LEIDDR.

A framework to make wealth accessible. Not easy, but very possible.

Think of it like your ladder to wealth.

(LEIDDR / "ladder" ...just play along.)

— Codie Sanchez (@Codie_Sanchez) June 15, 2023