5 Money Beliefs To Rewire Your Mind For Wealth

Get my New York Times Bestselling book, Make Money Easy! Money may seem complicated, but financial freedom comes down to mindset first, then strategy. In this powerful episode, I sit down with three leading financial experts - Jaspreet Singh, Codie Sanchez, and Glennda Baker - who each share their transformative journeys from financial struggle to abundance. Jaspreet reveals how our subconscious beliefs about money shape our financial reality, while Codie challenges conventional wisdom about entrepreneurship with her counterintuitive approach to "boring businesses." Most movingly, Glennda opens up about selling her Rolex at a pawn shop after making impulsive purchases, a painful lesson that later helped her build generational wealth through real estate. Whether you're struggling with debt, considering starting a business, or looking to invest wisely, these conversations offer practical strategies to make wealth-building accessible for everyone. Jaspreet on InstagramCodie on InstagramCodie’s book Main Street Millionaire: How to Make Extraordinary Wealth Buying Ordinary BusinessesGlennda on InstagramIn this episode you will learn:How to identify and transform your subconscious money beliefs that may be sabotaging your financial successWhy buying existing "boring businesses" can be less risky and more profitable than launching exciting startupsThe critical differences between employee and entrepreneur mindsets, and which might be better for your personality typeFive strategic criteria for identifying undervalued real estate investments with significant growth potentialHow to avoid the common trap of making financial decisions based on ego rather than long-term wealth creationFor more information go to https://www.lewishowes.com/1757For more Greatness text PODCAST to +1 (614) 350-3960More SOG episodes we think you’ll love:Jaspreet Singh – greatness.lnk.to/1644SCCodie Sanchez – greatness.lnk.to/1701SCGlennda Baker – greatness.lnk.to/1651SC Get more from Lewis! Get my New York Times Bestselling book, Make Money Easy! Get The Greatness Mindset audiobook on SpotifyText Lewis AIYouTubeInstagramWebsiteTiktokFacebookX

Speaker names marked ? are inferred from speaking time and the show’s known hosts — they are not voice-verified.

• 0:00Lewis Howes?

  I 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 want to make it easier, you want to make it flow, you want to feel abundant, then make sure to go to makemoneymeasibook.com right now and get yourself a copy. I really think this is going to 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 on the School of Greatness.

• 0:44Lewis Howes?

  In a moment of time, when it seems like inflation is rising higher than ever, it seems like people are more in debt than ever, and it seems like we don't know who to trust. The government seems like some of them could be lying to us potentially about the economy. There are so many wars that are causing transfers of money that we're not sure where the money is going. Student loans, debt is at an all time high, and it's harder and harder for people to make money these days. We brought on one of the leading experts on the internet today, Jaspreet Singh, who is a trusted individual and advisor to millions around the world about money, managing money, making money, understanding money in their lives.

• 1:28Lewis Howes?

  I'm confused and I feel like a lot of people are confused around money. Can you give us any insights on how we should first emotionally navigate the money troubles that millions of people are dealing with today?

• 1:43Jaspreet Singh?

  There's a lot to unpack there. So I think the first thing is understanding now how money plays a part in your life. And I know we've talked about this before. But I really think the key here is understanding that number one, money is important, and understanding your personal relationship with money. And what I like to to define that is there's a few things that you have to understand. Is number one is that it is my duty to become wealthy. Number two, money is a tool. Number three, money is abundant. And number four is I will become wealthy.

• 2:16Lewis Howes?

  Can you say those one more time?

• 2:18Jaspreet Singh?

  Sure. Number one is it is my duty to become wealthy.

• 2:22Lewis Howes?

  Yes.

• 2:23Jaspreet Singh?

  Number two is that money is abundant. Number three is that money is a tool. And number four is that I will become wealthy. And the reason why I say this is because you really have to understand that you can do it. Now, there's there's a difference between now what I'm talking right now and thinking and growing rich. Because if if we kind of now dissect this, everybody wants this outcome. And the outcome is I want financial freedom. I want to be rich. I want to be wealthy. I want cash flow. You can use whatever term you want for that outcome, or we want some sort of financial freedom. In order to receive this outcome, you have to go back a little bit, which means I have to take certain actions, right? I have to do things about money. You have to do things to achieve this outcome.

• 3:09Jaspreet Singh?

  But let's go back even more. How do you get that action to happen? I have to have a thought to go out and do something with money, right? I have to think I need to invest, have to think that I can become wealthy. And this is where most people think that you have to start, right? Think and grow rich. If I think rich, I can take the right actions and have the right outcome. But that's a lie. Because what you'll realize, many of us have this is in the back of our minds, you might have this little voice saying, I know this is not true. So you can sit there and say, I'm gonna grow rich and try to manifest this wealth. I'm gonna grow rich. I'm gonna become wealthy. Money is gonna fall into my laps. But it won't happen if that voice in the back of your mind is saying, I know I'm just doing this so I can have this outcome.

• 3:54Jaspreet Singh?

  I don't know if it's true, somebody like me can't become wealthy, somebody that looks like me can't actually do it, somebody from my background, somebody with my upbringing, somebody with whatever circumstances I have can't do it. And when you have that back of that mind thought, it doesn't matter what you're thinking, you're trying to just, you're trying to out speak your mind.

• 4:14Lewis Howes?

  Hmm.

• 4:15Jaspreet Singh?

  It doesn't work like that.

• 4:16Lewis Howes?

  So your mind and your words and your actions need to be in congruency and alignment.

• 4:21Jaspreet Singh?

  Right, and that's where we need to go one step back. Where we talked about, we want this outcome. You need to take an action to have that outcome. You need to have a thought to have that action. But what's before the thought? I call this your subconscious or your pre-thought.

• 4:34Lewis Howes?

  Hmm.

• 4:35Jaspreet Singh?

  Where this is now really getting into your, your, your true beliefs, not just your thought, your true subconscious beliefs. And that's what you have to work on first. That way you can actually think the right things, so you can have the right outcomes. Because what ends up happening if you're, if you're just thinking this with the frontal part of your mind, and I don't know which part of your brain does this, I'm just saying this. If you're just thinking this, but you really know deep down that money is evil, money is bad, I can't become wealthy, you're never gonna actually achieve the outcome that you want, which is why you have to start with really that deep understanding of your relationship with money. And why you have that? Because the real reason why generation or poverty is generational isn't because of the circumstances that you're dealt with externally.

• 5:20Jaspreet Singh?

  It's because you grew up being told, we can't have this, we can't afford nice things, we don't have money for this, we're not rich like them, rich people are evil. When you grow up hearing this, you grow up living life thinking this is true.

• 5:35Lewis Howes?

  Believing it.

• 5:36Jaspreet Singh?

  You believe it. And why wouldn't you? That's what you were told, everybody around you said that. People in your school probably said the same thing. You live this life thinking that, you know, money is limited, it is taboo, it is bad, and we can't have nice things because we're not rich. Okay, no big deal, that's what's normal. Now you grow older, you get a job, you be making some decent money. But you're gonna have the same money beliefs. And then, maybe you start having kids. I know your kids wanna have the nice PS4, 5, 6, whatever we're on. And what do you say? Oh, we can't afford that. We can't afford the nice things. We don't have money for that. That's for rich people. We're not rich. It's now this starts to get passed down.

• 6:20Jaspreet Singh?

  And this is where now the first step, but we've talked about this many times, the first step to building wealth is to start with the money mindset, the beliefs that you have around money and understand, number one, that you can become wealthy, not just that you can become wealthy, you will become wealthy. And that money is abundant. There's a lot of money in the world, right? When people start to enter this financial education space, we start to assume that if you're rich, I can't be rich. If you have money, I can't have money. So it starts to create that jealousy or just this negative association with, oh my God, I don't wanna tell you my business idea because what if you steal it and take my money? Well, both of us can have money. Cause there's a lot of money in the world. If you look at it from a financial perspective,

• 7:05Jaspreet Singh?

  the Federal Reserve Bank is printing trillions and trillions of dollars. There's a lot of money out there. You just need a small sliver of it and you can have millions and live a life of true financial freedom. And not just that, understanding that money is a tool. Because the reason why we put these smokescreens around money, that money's bad, it's taboo, it's evil, is because many times, people are insecure about their own money. And so when I can't go out and buy the nice vacation for my kids, I can't buy my husband that thing that he wants, I can't buy my wife that YSL or Gucci purse that she wants, I can't go on the nice vacations. Well, you know, money's bad. We shouldn't stress about money. It's these stupid vacations.

• 7:47Jaspreet Singh?

  We don't need those. We can enjoy our time here. Such a scam to go out there and sit on an all-inclusive beach and have food delivered to you, right? I mean, we start to create these smokescreens where, oh, why would why would anybody wanna have an expensive car like that? Why would anybody wanna have these nice and expensive things? Judging people who have money, yeah. And so now it's, you know what? If you don't want it, that's completely fine, but make sure you can afford it. And understanding now, money is not gonna make you a good person. It's also not gonna make you a bad person. It's just a piece of paper. It's fuel. It amplifies who you are. When you have more of that money, you can do more of the things that money can buy. One of those things is have freedom. Have options. Options to choose what you wanna buy. Options to choose where you wanna eat.

• 8:33Jaspreet Singh?

  Options to choose when you wanna go on vacation. Not just can you go on vacation? And options to choose how you wanna live your life. And not just that unfortunately or fortunately, depending on how you look at it. It also can influence what type of healthcare you can get. What type of healthcare your parents can get? What type of healthcare your kids can get? What type of college your kids can go to? What type of education your kids can go to? It matters. And so now, at the end of the day, you can hate it or you can understand it. And so we create these smokescreens without really understanding how money plays a part in our life. Because at the end of the day, money talks. And the people who have money will get to be able to live their freedom. And the people who don't, you become subservient to the people who have money. And I don't say that to be mean.

• 9:18Jaspreet Singh?

  I say this to be factual. They're facts, yeah. Right? The rich get richer, the poor get poorer, and the middle class has been shrinking. Because most people don't understand money. They don't know how to do, use their money. They don't understand what inflation is. They don't understand how the system works. The system is designed to produce inflation. And you can say, well, how do you know that? The Federal Reserve Bank says this. They publish this all the time. They say that we want a 2% inflation target. Why? Why not 1%? But why not 0%? Why do we want inflation in the first place? Because that's the way our economic system works. Our economic system runs on spending. And inflation increases the monetary supply, right? It increases the amount of dollars out there. That means the government has more money to spend.

• 10:01Jaspreet Singh?

  If the government has more money to spend, they can continue spending money and giving people jobs, right? If they, if they go out and give a contract to greatness, so you can produce some content, where you can go out and hire some people to go out and do things. But the question is, how are they paying for that? Because if I'm paying you to do that, I have to make a profit or I have to generate revenue from my business, right? To go out and write you this check. The government can just levy a tax or they can just get the money printed, which is a whole lot easier. And so then, one of these things can create more inflation in that sense. And that's why, again, our system Is this way, we talk about why is financial education so important? Because it is designed to benefit the financially educated. It's designed to benefit investors.

• 10:46Jaspreet Singh?

  And anybody can be an investor, but we're never taught to be investors. We're taught to go to school to get a job and spend our money. We're never taught what to do with that money. We're never taught to start a business and we're never taught how to take this money that we're earning and convert it into wealth. We're taught to turn this money into cars and clothes.

• 11:05Lewis Howes?

  Flashy things. So you say then that the government is designed to keep people poor unless they're willing to invest in financial literacy and education and make the right choices to get them into creating more wealth?

• 11:24Jaspreet Singh?

  Our economic system is designed to keep people poor. The government continues to spend money which creates inflation which keeps people poor. And this is where now in order for you to break out of that system, you have to, number one, learn the system. Number two, believe you can do it. Number three, do something about it.

• 11:44Lewis Howes?

  Yes.

• 11:44Jaspreet Singh?

  And do something about it means you gotta stop spending all of your money, which is uncomfortable, right? Because we wanna have the nice things. But I'm not saying don't ever have a nice thing again. Don't ever go to Starbucks or go to Gucci. No, what I'm saying is go through the decade of sacrifice, of spending less, earning more. It's tough financially, but that's gonna give you some more money. Now, when you take this money, you're gonna start investing it. You're gonna be very disappointed in the first couple of years because you see no returns. You don't see anything happening, but you gotta stick with it.

• 12:16Lewis Howes?

  Yes.

• 12:16Jaspreet Singh?

  And you keep doing it. You built your financial education, you learn more about how to invest. You start studying the financial trend, you keep building the financial preparedness. Maybe you see a market downturn, it creates more opportunities for you to invest. But you just stick with it. Then what's gonna end up happening? You go through the decade of sacrifice. Because now you turn around and you don't recognize the person that you were 10 years ago. You won't even recognize yourself 3 years ago. But this is where now you will start to build this real wealth fund for yourself. And now you can start spending more money, but it's not necessarily coming out of your paycheck. You can start having nice things. You don't have to worry about the price because the money is being funded by your investments. And that's why now understanding the system is designed to keep the majority of people broke. And the reason was because they want you to spend all of your money.

• 13:01Jaspreet Singh?

  And they want you to spend money you don't have because that means you get to spend more money, right? If I make fifty grand a year, I only have fifty thousand dollars worth of buying power, you would think. But no, you have more because of credit. We live in a credit-based economy. So if I can only spend fifty thousand dollars, I mean, I can only stimulate the economy by fifty thousand dollars. And that's where this clever financial strategizing came in and said, well, how do we get somebody making fifty thousand dollars a year to stimulate the economy by eighty thousand dollars a year? Credit cards, lines of credit, other forms of debt. That way now, what is debt? You're taking next year's income, spending it today, and then you pay it back next year, plus interest. So now you constantly, you're working just to make everybody else rich.

• 13:46Jaspreet Singh?

  You're working to make your bank rich, you're working to make Gucci rich, you're working to make everybody else rich except yourself. And this is where, that's what the system is designed to do. But if you want to build wealth, you got to number one, learn and stop spending all of your money.

• 14:00Lewis Howes?

  Who should be most afraid? People that are making under a hundred thousand dollars? People that are making it from a hundred to five hundred thousand dollars a year? Or people that are making five hundred to a million dollars a year? Over the next few years, with the elections, the economy, wars, inflation, who is at the biggest risk financially?

• 14:23Jaspreet Singh?

  Well, I think it's everybody. I wouldn't say one or the other. It depends on the percentage of money you're keeping for yourself versus spending. Because if you're making a million dollars a year and you're spending a hundred and ten percent of your money a year, but you're making fifty versus somebody else is making fifty grand, I'm living off of seventy-five thousand, I'm more worried about the million-dollar-a-year person because you are one bad step away from bankruptcy. Versus if you're making fifty grand a year, but you're smart with your money, which I've met a lot of people doing that. You are, you're ready for whatever happens. And you said, bring it on, because I'm going to find the opportunity. It's a very different mindset.

• 14:59Lewis Howes?

  And you're not living in, you know, you're not living out of your means. So you're, you've figured out how to have a comfortable lifestyle, a lifestyle that suits you, that aligns with your, your financial income. And you're not choosing to overspend.

• 15:13Jaspreet Singh?

  Right.

• 15:14Lewis Howes?

  And I've met a lot of people. Who have, you know, who rent, who have great relationships, who have good family ties and community that are able to use their time without having to spend money to have fun.

• 15:31Jaspreet Singh?

  Yeah.

• 15:32Lewis Howes?

  To enjoy their life.

• 15:33Jaspreet Singh?

  Yeah.

• 15:33Lewis Howes?

  Beyond, obviously you gotta buy food and you gotta pay rent and bills and expenses, but they don't need to overspend. They can go in nature. They can go on walks. They can be with their dog or their friends or family and do things and activities that stimulate more fulfillment and joy than spending on watches and clothes.

• 15:52Jaspreet Singh?

  You know, the first, my wife grew up with a very tough financial upbringing. And when we got married, she, you know, I was expressed that she would wanna, she'd always wanted, you know, a designer purse or some other things like that. And so she went out and I wanted to make sure she had whatever she wanted. So she got, you know, the designer purses and all that nice stuff. And then pretty quickly, she realizes, okay, this doesn't really give me much fulfillment.

• 16:24Lewis Howes?

  Now what?

• 16:24Jaspreet Singh?

  Now what? I can buy my purses, but it doesn't, the, the attraction to these things are the highest when you can't afford them.

• 16:34Lewis Howes?

  Hmm.

• 16:35Jaspreet Singh?

  When you can comfortably afford it, you no longer really crave that stuff. Now you realize, well, what's something bigger? What's gonna really give me that fulfillment? What is gonna give me those memories? And it really goes back to what you were just saying, which is a mindset shift, because everyone says, oh, it's gonna suck living smaller. It's gonna suck doing this. Well, it doesn't have to. When, I'm sure when you were starting your business, you were working hard, but you were probably having the time of your life.

• 17:01Lewis Howes?

  It was, yeah, it was a thrill.

• 17:03Jaspreet Singh?

  It's, it's.

• 17:03Lewis Howes?

  I mean, there's ups and downs.

• 17:04Jaspreet Singh?

  There's ups and downs, but it's, it's, when I was first getting started, when I started my party promotion business, I knew nothing about anything. I was a naive seventeen year old kid. I, I mean, I was really, I mean, financially dumb, but I knew I wanted to start building some income and start doing more things in my money. And I had two other guy friends that were doing this with me. They were kind of like partners that we worked hard with. And we were working around the clock, but we were having the time of our lives. It was tough. I mean, we were working hard, but we were having so much fun. We were laughing so much because we were just having fun. And it's really like.

• 17:43Lewis Howes?

  Can be exciting too. Oh, this new adventure. Yeah.

• 17:45Jaspreet Singh?

  And it's really that mind. Again.

• 17:47Lewis Howes?

  People also need, people also need perspective. I think you gain a mindset when you experience a perspective that wakes you up. We're just talking about, you know, Indian culture. I've been to India. I've been to Guatemala five times. I go to Mexico all the time. Even in, you know, wealthy areas of Mexico. You know, the thing that breaks my heart the most and gives me a lot of perspective and a lot of appreciation for my life. Is when I see seven year old girls walking in the street, nine year old boys, four year old girls, walking by themselves. With little candies.

• 18:28Lewis Howes?

  Working all day and all night to survive that day. Because their parents don't have money and their parents are out working as well, selling whatever they can sell. And you see a girl trying to get 20 pesos for a little piece of gum or something or a little candy. And that is her life every day. She's walking the streets in Mexico or Guatemala or India or whatever it might be. To survive that day. And it puts your mindset in perspective.

• 19:00Jaspreet Singh?

  Yeah.

• 19:00Lewis Howes?

  When you're eating at a nice restaurant, you're getting your cup of coffee and you're spending $18 for coffee and you see a child. Working 12 hours a day. Because she needs to support the parents to live that day. It puts your life in perspective. It makes you realize, oh, okay. Maybe I can be more fulfilled with what I have. Maybe I can make some different choices. Maybe I can appreciate where I'm working right now. Or I can appreciate, you know, what I've created for myself far. Maybe I don't have to be so jealous of everyone else around me of what they're buying and consuming or where they're going on their trips. I can value my life in a different way.

• 19:44Lewis Howes?

  And I think perspective like that wakes you up in a big way.

• 19:48Jaspreet Singh?

  It's a cultural shift too. I mean, it's, it's, when you grow up in a country like America where resources are plentiful, it's hard to sometimes see them because in other countries, they're not always there. And people, you know, unfortunately, a lot of people don't realize that when you're in a country like America, like if you can understand the words that I'm saying, you have the opportunities to build wealth, you have the opportunities to, to do whatever you want, where you might not get those opportunities in other parts of the world. And when you have so much, we'll call it privilege of being able to speak English, of being able to be in a first world country, you start to then create victimizations of yourself and you start to create these like, it's difficult for me because of X, Y, and Z.

• 20:33Jaspreet Singh?

  Versus where other parts of the world, you might not have that privilege. Again, I make a lot of mistakes, so I would definitely not want to put myself as, you know, a perfect person or anything even close. I make a lot of mistakes in every which way, but I think the goal is always just to try to be a little bit better every day. You can improve no matter where you are. I think all of us, myself included, especially have a lot to improve. There is opportunity and availability for you to go out and live a life financially of more freedom, but that requires you to number one, breathe, understand as possible, take action, and even when things get tough, you keep going.

• 21:18Jaspreet Singh?

  And, you know, beyond that, right, you gotta make those financial sacrifices. That way you can do more of the financial things, travel, spend money, and not have to worry about the price because now you have the money, right? The goal is not to ever enjoy the nice things, it's to be able to afford the nice things, but not have to worry about the price because you've put in the work and now you earned it.

• 21:43Lewis Howes?

  What 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?

• 21:50Codie Sanchez?

  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, it's all handed down, you know? But 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.

• 22:33Codie Sanchez?

  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 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.

• 22:50Lewis Howes?

  And taking risk and working your butt off non-stop.

• 22:54Codie Sanchez?

  100%. Like I giggled because another YouTube video did a video of me and it was like, make millions, it's easy, no work. Who's the title?

• 23:02Lewis Howes?

  Passive.

• 23:03Codie Sanchez?

  I was like, I'm pretty sure I've never said that in my life.

• 23:06Lewis Howes?

  How many hours do you think you work a week?

• 23:07Codie Sanchez?

  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, 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? What's, you know, what's going on? And he just, he was exhausted. It was like passing out from exhaustion. So

• 23:33Lewis Howes?

  Working 80 hour weeks for years, probably.

• 23:35Codie Sanchez?

  Yeah, 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.

• 23:45Lewis Howes?

  And that was as an employee job.

• 23:47Codie Sanchez?

  That was an employee.

• 23:48Lewis Howes?

  You're an employee. But you're 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.

• 23:57Codie Sanchez?

  Yeah.

• 23:57Lewis Howes?

  It took you 78 hours a week.

• 23:58Codie Sanchez?

  Yeah, for sure.

• 24:00Lewis Howes?

  So you can't do it with like 40 hours a week, just kind of casually showing up and expect like multiple six figures.

• 24:05Codie Sanchez?

  I don't think so.

• 24:06Lewis Howes?

  Do you know any business that's paying someone to just do the bare minimum?

• 24:10Codie Sanchez?

  No, unless you are the capital. That's where you start.

• 24:13Lewis Howes?

  Unless you have the money.

• 24:13Codie Sanchez?

  Unless you got the money. Then I have many businesses that I do no work for now.

• 24:17Lewis Howes?

  Right, right, right.

• 24:18Codie Sanchez?

  But that's because I did risk.

• 24:20Lewis Howes?

  You invested.

• 24:20Codie Sanchez?

  I put money down.

• 24:21Lewis Howes?

  And you could lose it all.

• 24:22Codie Sanchez?

  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.

• 24:35Lewis Howes?

  How valuable do you need to be? How much do you need to be earning for that business, like bringing in for that business?

• 24:42Codie Sanchez?

  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 like 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 don't, we're not taught how to do that as normal people and we should think that way. Because 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.

• 25:17Lewis Howes?

  That's the worst.

• 25:17Codie Sanchez?

  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. Because 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.

• 25:49Lewis Howes?

  Yeah.

• 25:49Codie Sanchez?

  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? You could go to other companies that have, 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.

• 26:32Codie Sanchez?

  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. Well, learn how to get a small percentage instead.

• 26:41Lewis Howes?

  Yeah.

• 26:42Codie Sanchez?

  Yeah.

• 26:44Lewis Howes?

  So if you're not a personality type that doesn't like risk,

• 26:47Codie Sanchez?

  Yeah.

• 26:47Lewis Howes?

  you shouldn't be a business owner.

• 26:49Codie Sanchez?

  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.

• 26:54Lewis Howes?

  How many hours do you put in a week on average as a business owner versus when you're an employee?

• 27:00Codie Sanchez?

  Well, I like work, so I just worked a lot both times. I think, you know, I was probably working from seven until seven or eight or nine.

• 27:09Lewis Howes?

  As an employee.

• 27:10Codie Sanchez?

  As an employee.

• 27:10Lewis Howes?

  And now as an owner.

• 27:11Codie Sanchez?

  I'm probably working from seven until six as an owner, but a little bit on the weekends. And maybe when I was an employee, I wasn't working on the weekends.

• 27:19Lewis Howes?

  Right.

• 27:20Codie Sanchez?

  And, you know, I think when you're an owner, your schedule kind of looks more, I think, you know, when your name's on the door, it's easier to work more hours. Like, let's be honest. It's just easier.

• 27:29Lewis Howes?

  Yeah, it's yours.

• 27:30Codie Sanchez?

  It's yours.

• 27:31Lewis Howes?

  Yeah.

• 27:31Codie Sanchez?

  And so, but when you're the owner, it's also easier when you set the hours to work more of them. And so, you know, for me, I got no problem taking, you know, four weeks off and going to Europe. And I'm checking on stuff every day a little bit, but they're mainly running the business. When I was an employee, that wasn't an option.

• 27:50Lewis Howes?

  Mm-hmm.

• 27:51Codie Sanchez?

  But when I did go on vacation as an employee, wasn't checking. You know? I was like, good luck. Fine.

• 27:57Lewis Howes?

  Yeah, yeah, yeah.

• 27:58Codie Sanchez?

  So it really depends on how you want to run your life. You know, too. But I think the one thing that I do want to impress upon people is like, there is nothing wrong with being an employee. Being an employee is amazing. It means that you do not carry all the risk. And you can actually become massively wealthy as an employee if you understand how to become so valuable that you get a piece of multiple gains. So for instance, right now, we're, we're hiring a president for one of our companies, and he's from a huge company. So do we have a right, like, it's not really reasonable that he would come and do this for one of my companies, given what he's done in the past.

• 28:33Lewis Howes?

  And you couldn't pay him the salary where he's making in a big company.

• 28:37Codie Sanchez?

  Maybe one-fifth of that. And so why would he come work for me? Because I'm like, listen, you could go work for this one company and have one shot at goal. If that company wins, you're going to win big. But the founders got to sell at the right time, you guys got to hit these huge milestones, the investors got to get paid. You've got one bet. Or with me, you can come into this company and you can take an equity bet on this company, but also a bunch of these other little bites. And so that's why I think private equity is so interesting and why people stay as private equity employees for decades. I mean, I have a friend, let's call him Frank, who's probably one of the richest guys I know, and he has been an employee in a private equity firm for like 30 years. He's like dating celebrities, has a plane, he's an employee, but he gets little bites at the apple.

• 29:22Codie Sanchez?

  And so I'm trying to really explain this to my employees.

• 29:25Lewis Howes?

  And less risk.

• 29:26Codie Sanchez?

  No risk. The only risk is getting fired.

• 29:28Lewis Howes?

  Right, right.

• 29:29Codie Sanchez?

  You know, and that you have to work a lot.

• 29:31Lewis Howes?

  But he's not managing payroll, he's not having to hire and fire people necessarily, or maybe that's his job, but he's not dealing with having to bring in all the money constantly to keep the business running.

• 29:41Codie Sanchez?

  Right, well, and let's talk about the truth of the matter here, is that 90% of startups fail in a 10-year period. Most startups fail in the first three to four years, and in those first three to four years, you make zero dollars. In fact, you spend on average $30,000 to $50,000 a year attempting to make money.

• 29:58Lewis Howes?

  Oh, man.

• 29:59Codie Sanchez?

  And then, when you eventually do make money in year three or four, the average entrepreneur pays themselves anywhere from $40,000 to $60,000 a year in salary.

• 30:07Lewis Howes?

  So you go five years making no money, essentially.

• 30:09Codie Sanchez?

  Exactly.

• 30:10Lewis Howes?

  Working more hours than as an employee.

• 30:11Codie Sanchez?

  Right.

• 30:12Lewis Howes?

  What's the benefit then if you spend a half a decade of your life, where most likely you're going to fail?

• 30:17Codie Sanchez?

  I think that is the question we have to ask ourselves.

• 30:20Lewis Howes?

  It doesn't seem exciting next.

• 30:21Codie Sanchez?

  No, that's why I get excited about boring businesses. Because what are the two reasons that most businesses fail? Well, 60% of businesses fail because they don't have product market fit. Which means like, I had an idea. I wanted to sell these graphic mugs. These graphic mugs are amazing. I asked all my buddies, "You gonna buy one, Louis?" They're like, "Yeah, of course. Great idea. You should go be your own CEO of a company."

• 30:39Lewis Howes?

  Everyone thinks it's the best idea ever. You're gonna sell millions.

• 30:42Codie Sanchez?

  Right. Then you go and create the company. And all of a sudden, Louis is a little cheap. "Nobody's buying my mugs," right? So the market didn't actually want what you were selling. And then the second reason most businesses fail, which is about 20% of the reason, is lack of cash flow. So you have this big idea, nobody wants it, you run out of cash before you get to figure it out. And so I think we've been sold a total lie about business creation and startups. Which is that employment sucks, and also, we should go start a business instead. And what often happens, and I hire a lot of these people, is they go start their business, they're like, "Oh my God, this is worse than employment, and I'm not making any money." And so, if you're gonna play the odds, if you're gonna go gamble,

• 31:25Codie Sanchez?

  you can play the slots and know that you have the worst odds out there playing the slots. And if you're gonna gamble, you at least are probably gonna play blackjack if you're good at it. Because you know that's where you have the best odds. Business is very similar. The best odds is somewhere where the business already has product market fit, and the business is already cash flowing.

• 31:42Lewis Howes?

  It's already making money.

• 31:43Codie Sanchez?

  It's already profitable. And it's been doing it for years. And so that's why I'm obsessed with this idea of boring businesses and buying them, because statistically, it has less risk, and it has more ability for you to earn over time. It's not no risk, but it is less risk than a startup. And nobody talks about that.

• 32:01Lewis Howes?

  What are the main reasons people are selling their profitable businesses then? If a business has been profitable for five or 10 years, and it's so hard to be successful, why sell the business?

• 32:11Codie Sanchez?

  There is a huge gap in education between asset value in business owners and ability to sell your assets. Think about it this way. If you owned a house anywhere in the country and that house was too small for you and it was still livable, it's still a house, maybe it's not the nicest house, it's not really what you want, you would never just go, let's just light that fire and like walk away, right? It would be, that would be crazy. You'd be like, okay, well, let's sell it for whatever it's worth, or let's put a renter in there, or let's do something with that asset. We think about a house like an asset. In the US, we do not think about our businesses as assets. We do not think about our business lines and divisions as assets. And so what do we do instead? We just walk away from the house that somebody else could live in. And so, you

• 32:55Codie Sanchez?

  know, there was a, who was I talking to? It was, oh, it was Sean Rad, founder of Tinder. So him and I were chatting the other day.

• 33:02Lewis Howes?

  Yeah, he's a buddy.

• 33:02Codie Sanchez?

  Uh, love him.

• 33:04Lewis Howes?

  I got him connected to, he's lost a lot of weight in last year because I got him set up with my trainers.

• 33:07Codie Sanchez?

  No way.

• 33:08Lewis Howes?

  Yeah, so he's been, you know, just transforming his health. He's been doing great.

• 33:12Codie Sanchez?

  Oh, good. I got, I didn't tell, I'll have to tell him that we're buddies. So he was funny because I was explaining this to him and he's like, you know what's interesting? Because I went into a, um, oh God, I might mess this up slightly, but let's say that he went into like an old um, bookbinding shop. And in this bookbinding shop in LA, uh, he looked over to the left and there were like these racks and racks and racks of books. And he was like, these are some cool vintage books. Um, and so he was going through them and he was like, hey, I want to buy a couple of these from you. And she's like, no, I don't buy them. You can just take them. And he's like, no, no, I'm gonna, I want to pay you for them. What's the deal with these? Why do you have thousands of books here? And she's like, oh, well, my husband had a bookstore and he died or they got divorced. And so we shut down the bookstore. So what are all of those books?

• 33:55Codie Sanchez?

  Those are assets. And if they had been thinking about their business as a house, what would she have done? She would have, she would have done appraisal, had somebody come out, look at what the books are worth. She might have had somebody come and look at what the lease was worth for the business. She might have sold the whole business or done an asset sale. And so Sean ended up buying a bunch of one-off books. And then he was laughing. He's like, God, I felt bad because I went and checked them later. And I'm like, totally underpaid for these things.

• 34:18Lewis Howes?

  Wow.

• 34:19Codie Sanchez?

  Because they were worth something. And so people sell their business because they don't understand the value of the business and they don't think it's sellable. Then like an example that I would probably give you is like, you've done it. Like, you've had a business line before, right? Let's say your education business. And you're like, this isn't serving the current business right now. I'm going to shut it down. Reasonable, you're like, I'm the face, you know, it's not set up to sell. You haven't prepped a business that you created to be a business you could sell.

• 34:48Lewis Howes?

  Right.

• 34:48Codie Sanchez?

  Because most business owners do not know how to do that. And so you shut it down because you're like, well, reputational risk, all of these things. But let's say that you went through our program that we teach and we talk about like prepping a business for a sale like a cake. You would have done all these tasks, which meant that you would have removed yourself as key man and you would have had a business that somebody else could take over. And the benefit there is somebody else gets to steal your 10,000 hours and you don't have to close a 10-year asset build.

• 35:19Lewis Howes?

  Sure.

• 35:20Codie Sanchez?

  That you have.

• 35:20Lewis Howes?

  I did that with my first business and the person that took it over is kind of like all my online courses before I launched School of Greatness. And the person that took it over ran it to the ground.

• 35:30Codie Sanchez?

  Did you sell it?

• 35:31Lewis Howes?

  I sold it to him, but then it was also a sale over like three years. So he ran it to the ground after like four months.

• 35:38Codie Sanchez?

  Did you get your cash out of it?

• 35:39Lewis Howes?

  First few months and that was it.

• 35:41Codie Sanchez?

  Okay.

• 35:41Lewis Howes?

  They sold me a lot. So that was a challenging thing, but it was a lesson, you know.

• 35:44Codie Sanchez?

  Yeah, but I think this is a perfect example. So I bet if third-party people looked at that, they'd be like, why would Lewis sell this business? He's making, I'm going to make up numbers, making a hundred thousand dollars a year from the business. That's a great business. Nobody would sell a hundred thousand dollar a year business. But why would you sell it? Because you had a million dollar opportunity over here and so you have opportunity cost.

• 36:03Lewis Howes?

  Exactly.

• 36:04Codie Sanchez?

  So there's nine hundred thousand dollars that's waiting on Lewis to make a sale, right?

• 36:08Lewis Howes?

  Well, the big lesson is kind of what your biggest mistake was, it sounds like was, you know, it was a partnership that wasn't working out. And we weren't seeing eye to eye for like many months, probably six to nine months. And it was exhausting trying to be in partnership with someone where we just didn't have the same vision.

• 36:24Codie Sanchez?

  Right.

• 36:24Lewis Howes?

  I'm not blaming him or myself. We just weren't aligned and we didn't ask those questions early on. I didn't ask those questions. He didn't ask those questions. And so we didn't, we had clarity over like, let's go make some money over the next year, but we weren't thinking years in the future. We were assuming

• 36:38Codie Sanchez?

  Yeah.

• 36:39Lewis Howes?

  the other person wanted the same things.

• 36:41Codie Sanchez?

  Yeah.

• 36:41Lewis Howes?

  And that created a lot of stress.

• 36:43Codie Sanchez?

  Yeah. Well, there's a whole chapter in there about partnerships and how to not fuck them up. It's not perfect, but there's, I have like 12 key lessons about partnerships that are really important in selling it. But I bet, did you do that sale with seller financing? Was that like largely hey, a percentage of future profits?

• 36:59Lewis Howes?

  Yeah.

• 37:00Codie Sanchez?

  So he, he sounds like he actually got a pretty good deal out of you.

• 37:03Lewis Howes?

  He got a great deal.

• 37:04Codie Sanchez?

  Yeah, because he was able to talk you into his vision of future.

• 37:07Lewis Howes?

  Cause I knew he couldn't pay me upfront.

• 37:09Codie Sanchez?

  Right.

• 37:09Lewis Howes?

  He wasn't able to do it. And he was like, I'm gonna use this money to do the marketing and the ad spend and then he just ran it to the ground.

• 37:14Codie Sanchez?

  And you probably didn't do a real deal process to have multiple people come in and potentially vet your business.

• 37:18Lewis Howes?

  Yeah, exactly.

• 37:19Codie Sanchez?

  But why?

• 37:20Lewis Howes?

  And I was also just like exhausted, you know, it's like, a lot of people are exhausted running their business for years, where they might sell it on the cheap.

• 37:27Codie Sanchez?

  Yep.

• 37:28Lewis Howes?

  Cause they just wanna get out.

• 37:29Codie Sanchez?

  That's exactly right. That's the seven D's, which is, you know, death, divorce, distress. I always forget this. You move, uh, god, it's, uh, death, divorce, distress. You move locations. You have disagreement. So that would be like a business partnership. You have.

• 37:53Lewis Howes?

  Debt.

• 37:55Codie Sanchez?

  Yeah, that's not the exact one, but we could use that one. We fill it in since I'm forgetting it. And somebody on the internet will tell me what the seven is. But for most small business owners, they, they're in the pain cave when they're looking to sell, you know? In this case, largely retirees.

• 38:12Lewis Howes?

  Yes.

• 38:13Codie Sanchez?

  Cause 60% of all small businesses are owned by people 65 plus in the US, which is wild. So a lot of them just wanna retire.

• 38:20Lewis Howes?

  And they've been running it for 10, 20, 30 years, maybe, some of these businesses.

• 38:23Codie Sanchez?

  Right. But a lot of these business owners too, just have the same thing you have, which is opportunity costs. Like, ah, I'm running this landscaping business, but this roofing business is really taking off.

• 38:33Lewis Howes?

  Exactly.

• 38:34Codie Sanchez?

  So I think that's, I think that's a beautiful story to share, because a lot of people don't think it happens.

• 38:40Lewis Howes?

  Yeah.

• 38:40Codie Sanchez?

  It happens all around us.

• 38:41Lewis Howes?

  It's exhausting. And that's, I mean, not to be opportunistic, but that could be the time where you could swoop in and find a business that is distressed.

• 38:48Codie Sanchez?

  Yeah.

• 38:48Lewis Howes?

  That's struggling, or a partnership is falling apart, and they need to sell.

• 38:51Codie Sanchez?

  Yeah. It's one of the seven slash three and a half D's.

• 38:54Lewis Howes?

  Here's a question that I thought would be perfect for you. I was actually getting a coffee last week, and I went in this coffee shop. There was a couple of people sitting there, but no one was in line. It was like at 3 o'clock, right? So after the, kind of the rush of the afternoon.

• 39:10Lewis Howes?

  And for whatever reason, I like to talk to a lot of people when I meet them. You know, I like to say hi to people at stores. I'm from the Midwest, so I'm just kind of like welcoming most of the time. Not every day, but most of the time I just say, hey, what are you grateful for? I just kind of have these questions.

• 39:22Codie Sanchez?

  Uh huh.

• 39:23Lewis Howes?

  And I could tell this woman who was behind the desk making coffee was not having a good day. The energy was low. She's probably in her mid twenties, maybe late twenties, I'm not sure. Uh, her name was Phoenix. I don't know her last name and I won't say where she was working. But um, I was just asking her a few questions. I was like, what's going on? And she goes, I'm just tired, not, you know, I'm not enjoying the job. The pay isn't that good. You know, things aren't going in my favor in life. Like, there's a lot of stress and it feels hard to, to get out of it. For someone like Phoenix who's listening or watching right now, who is just had a job they're not enjoying. They're not making the money they want and they don't feel like things are going their way.

• 40:09Lewis Howes?

  What's one thing they could do to start shifting their energy? And start seeing the world differently so they can have more of a positive experience rather than a soul sucking experience?

• 40:19Codie Sanchez?

  So good. Go make something a little bit better at the job you have right now. Like step number one, if that coffee shop isn't giving you what you want out of it. You're not making enough money, you don't love what you're doing. How can you actually give more to the business, which sounds counterintuitive? But I would come up with every single day, what's a little bit more that you can be doing? Can you be going around and seeing if anybody wants some additional orders? Try to take note how much the business is making each time that you're on shift? And then how much it makes after you start making these changes? Create a little list of the things you did to affect your will on the world. Show that, hey, you actually know how a business works and you want it to grow. Small little changes. Maybe you go outside, you're starting to say hi, you hand out a little coffee sample to people.

• 41:03Codie Sanchez?

  Think like an owner, have an ownership mindset. Because when you have an ownership mindset, that transfers to ownership eventually. Then the second that you do that, I want you to go to the owner of the business. And I want you to tell them, just a little brief, hey, here's the stuff I've been doing at the business. No ask. This little list of things, it seems to be working. Here's some of the experiments I've been trying. First of all, they're gonna be [bleep] shocked. Nobody's gonna ever have done something like that to them. You are already now the 1%. Second step, you do it for a few more weeks. At the end of a few weeks, you go, hey, I've been doing these extra things. I'd love to make some additional money here. Is that possible? Can you show me like what a career progression looks like here? For me to move to the next step, for me to make additional money?

• 41:45Codie Sanchez?

  Here's the thing, if they say, nothing, this is Starbucks. We don't hire this way, you're stuck here. Then that's a bad company and you need to start looking elsewhere. And you need to, as you're looking for your next thing, not just have a resume, but have some case studies. Here's what I did in my last business that they didn't ask me to do. Here's how I realized that I could provide positive value. I can promise you one thing only. The capability is so rare and desire is even more rare. And so if you can show those two things in the world, you will go from having an owner's mindset to an owner one day.

• 42:21Lewis Howes?

  I think it's 80% of businesses fail within the first five years. And the other 20% barely are holding on or struggling. It's really rare to succeed in business. And it takes a lot of kind of luck and timing, all these different things. But a lot of people, you hear horror stories in the stock market as well as in real estate for people. They went out and bought their first home and they lost all their money. Or it took so much time and energy, it just exhausted them that they gave up. Maybe they tried to start a business, it failed. And they just feel like, God, every angle I go to try to earn money, I struggle, I spend so much time and I get defeated. What wisdom can you share to someone today? On whichever route they want to take,

• 43:02Lewis Howes?

  on how to emotionally and mentally overcome the obstacles that may come their way?

• 43:08Speaker 03

  Don't ever put yourself in a position to have to sell. If you never put yourself in a position to have to sell, you're never losing money on real estate. I haven't sold a house in the last 30 years that hasn't sold for more if the person was able to wait and sell it when they wanted to. When you put yourself in a position, you over-leverage. You buy in an area that is transitioning or that is high crime.

• 43:39Speaker 03

  That is a gamble. Those people, you're gonna lose money. But when you put yourself in a position to never, ever have to sell, you're always gonna make money in real estate. Now, I don't know about you, but those people who bought Blockbuster, it doesn't matter how long they wait. They're never getting that money back, are they? No. And that's the difference between real estate and stock. People say, "Oh, well, you know, Glenda, if I had, if I put $130,000 in this stock, it would be worth a zillion dollars." Correct. But if you put down $6,500 on a $130,000 house, you only have $6,500 in it. Right. If you lost it, you only lost $6,500.

• 44:23Speaker 03

  You didn't lose $135,000. That Blockbuster stock, you lost all $135,000. People don't think about it from that perspective. You talk about appreciation. You bought a $150,000 house in 1975. That house is now worth a million dollars. Guess what? You also had a place to live. Mm-hmm. Okay? Or you had an income generating, generating asset. Yeah, yeah. So that's the thing is like, the last time I checked, those stocks aren't doing that for you. And, and I, all I know is real estate. Like, I, I'm old. I wanna see, touch, feel my money. When I wanna be able to get my money out, I wanna be able to get my money out.

• 45:05Speaker 03

  I don't wanna be at the mercy of the stock market. So while I have stock market investments, that is not where I keep my money. I keep my money in houses where I can see, touch, and feel it. And the worst-case scenario is that you have it rented out and it's renting for less than your payment. Okay? So this is the worst-case scenario. Your payment is $2,000 a month and you're only getting $1,500. That's a $500 savings deposit that you're making per year into that account. And if you keep that house and you sell when the market is high, you're gonna make all of the money that you put back in it. Right.

• 45:47Lewis Howes?

  Right. What about if someone says, well, what if, you know, I've got to fix all these things and there's all these extra costs and expenses that I have in the house over a few years and it's just, maybe I chose it wrong or maybe the realtor, I didn't see these things, the inspector missed something, whatever it is.

• 46:02Speaker 03

  Yeah.

• 46:02Lewis Howes?

  And I gotta pay $20,000 for a new AC, the roof, the this, the bathroom, and it's like I'm in tens of thousands of dollars more, $100,000 more than I have or wanted to be.

• 46:14Speaker 03

  Right.

• 46:15Lewis Howes?

  And now I've got to hold on to this for 20 years to make a profit. You know, how does someone wrap their mind around that? And not feeling like they're losing money, they don't have access to that cash and they have energy invested into a house versus kind of just that money in the bank or in an index fund?

• 46:31Speaker 03

  Right, exactly. So what happens is, is it's critical to understand what you're buying. It's critical to do your homework on what you're buying. Not just having a great real estate agent, not just having a great inspector, but getting in the weeds with it. And what I mean by that is driving through the neighborhood, getting lost in the neighborhood. Did you do your own recon in the neighborhood? And that's what I want people to do is don't depend on somebody else to tell you everything. I want you to understand how to do it. And so a lot of times when I'm with buyers, I'll put them in the car and we'll just drive around, get lost, turn off the GPS,

• 47:16Speaker 03

  eat in the restaurants, shop in the grocery stores. Cause, and this is such, this is such a simple thing that a lot of people don't think about. If the grocery store has great produce, that means that people are spending money in that grocery store. That means that people are concerned about what they're eating. They're probably going to take care of their house. Nobody ever talks about stuff like that. You probably never thought that if I have good grapes at my grocery store, it probably means that I'm living in a neighborhood that's well kept. If you're concerned about the food that you're eating, what you're putting in your body, you're probably concerned about how you're taking care of your house.

• 47:54Lewis Howes?

  Wow. What would you say are five things people should look for when finding a great deal or an investment in real estate?

• 48:01Speaker 03

  The best investment in real estate, grandma's house, okay? Something that needs cosmetics, not infrastructure. Infrastructure may not sound sexy, but infrastructure is a wonderful thing to have.

• 48:13Speaker 03

  Number two, look for an area that is not at the top, but that is growing, that you can kind of see like, oh, wait a minute, they're doing work here. There's a dumpster in the driveway here. And do that kind of research. Understand like what direction is the neighborhood going in? Number three, I would probably say when you're looking to invest, make sure that you understand what you're buying. A lot of people don't understand, like, is this house on a two-lane street? Is that a problem? Does this back up to the retention pond? Are there mosquitoes? It's Atlanta, Georgia. It's hot as hell.

• 48:57Speaker 03

  There's all kinds of mosquitoes. Do you understand how much less you're going to take for a house that's on a retention pond? So that's why I always want people to understand exactly what it is that they're buying. I hammer on that a lot. And again, I don't want you to get caught up in your ego. A lot of people buy for vanity.

• 49:16Lewis Howes?

  Really?

• 49:17Speaker 03

  Oh.

• 49:17Lewis Howes?

  What's the ego mean when they invest in ego?

• 49:20Speaker 03

  Because they want you to drive up, pull in the driveway and say, "Oh!"

• 49:25Lewis Howes?

  What a nice home.

• 49:25Speaker 03

  "Oh, my stars!" You don't want that. Literally.

• 49:30Lewis Howes?

  Unless you're living in it, maybe.

• 49:31Speaker 03

  Not, you don't even want to when you're living in it. Literally, you want to live in the house that works the best for you and your family. Like, do you want to, like, out here in LA, it's a little bit different. But in regular markets, like, think about it. And I'll talk about Trey Young. I love basketball. Trey Young bought a $20 million house out here in LA. Signed a contract for $215 million. Praise the Lord and pass the money, right? Do you know how much the taxes on that house are? $600,000 a year.

• 50:05Lewis Howes?

  Oh.

• 50:05Speaker 03

  Okay. Do you know how many houses, investment properties you could buy with $20 million?

• 50:11Lewis Howes?

  Wow.

• 50:12Speaker 03

  So you could have bought a fancy $5 million house in Atlanta, Georgia, which would have been the same as a $20 million house out here, for God's sake. Then you could have bought some investment properties and built generational wealth. Not that his $215 million ain't going to be generational, but ask Evander Holyfield how that works out. That's the thing. You look at, look at Evander Holyfield.

• 50:35Lewis Howes?

  Yeah.

• 50:36Speaker 03

  A fighter who sacrificed his body, his well-being, his quality of life, made hundreds of millions of dollars in his career, and loses his house to foreclosure.

• 50:48Lewis Howes?

  Wow.

• 50:49Speaker 03

  And think about that. So that's when I, when I talk about vanity, anytime that you're trying to impress somebody else with what you have, I just gonna ask you, just let's just rethink that, just, just for a second.

• 51:04Lewis Howes?

  When did you really learn about how to manifest in your life? Was there a time or a season or a decade where you started to think a certain way when it came to either attracting the right clientele as a realtor, in terms of attracting the right homes that you wanted to buy and invest in, in terms of business deals that you wanted to do? Was there a season or a time that you learned about manifestation?

• 51:28Speaker 03

  Making mistakes was probably the biggest teacher for me.

• 51:35Lewis Howes?

  Really?

• 51:38Speaker 03

  Not just making mistakes in my real estate business, but making mistakes in my personal life.

• 51:43Lewis Howes?

  Mm-hmm.

• 51:44Speaker 03

  Cost me so much time.

• 51:47Lewis Howes?

  Really?

• 51:47Speaker 03

  And so much money. Because, and, and I think the reason that I'm passionate about it is because, like, I went out and bought the Mercedes. I made a hundred and thirty-seven thousand dollars on one house. I went out and bought a Mercedes, I went on a shopping spree, and within 12 months, I was selling my Rolex at a pawn shop.

• 52:07Lewis Howes?

  Really?

• 52:08Speaker 03

  Yes, really. I was selling my, my car, my Mercedes. I was selling that Mercedes and buy, no, no, no, I didn't sell it first. I didn't sell it at first. At first, sit down, it was paid off, because you know, I had made all that money. What you really don't realize-

• 52:25Lewis Howes?

  It went down in half after a few months.

• 52:27Speaker 03

  Well, what you don't realize is that you gotta pay taxes on all that money. But anyway, so I buy the car, and I realize I have a cash flow issue. So what do I do? I go get a tothe note at 27%.

• 52:43Lewis Howes?

  Ooh.

• 52:44Speaker 03

  So you want to talk about, oh Glenda, what would you do? When I talk to you, I'm just telling you, straight from the horse's mouth. I made this mistake, don't make the same mistake I did. I went out and bought the fancy Rolex. That's why I have the $130 ring from Ross Simons. I mean, it looks fancy, it looks nice, it works. It matches my outfit today. So that's what I want people to focus on is like, is like, the mistakes that I made, don't, don't do what I did. Learn, learn from me. And so that, I mean, how do you manifest it?

• 53:23Speaker 03

  When I see, when I, I never will forget, I saw this agent who sucked as a real estate agent. And that guy was making more money than he could count.

• 53:35Lewis Howes?

  Really? What was the secret?

• 53:38Speaker 03

  He was a good talker, but he was investing in POS houses. He was investing in these little houses and he was fixing them up and selling them and fixing them up and renting them. And I remember thinking to myself, somebody that is not as good as I am at real estate is doing a thousand times better than me. And every time I thought about going out and pissing the money away, I thought about that guy. And it pissed me off. It made me so mad. It just made me crazy. And every time that I think about doing something that's probably, you know, impulsive

• 54:23Speaker 03

  or ego-driven, and, and I think that a lot of times you get caught up in being ego-driven because it feels good when everybody looks at you and they think that you're successful. But I, for me, every single day, I focus on what moves me from here to there. And here is freedom for me.

• 54:47Lewis Howes?

  Hmm.

• 54:48Speaker 03

  Freedom with my children, freedom with my family, freedom with my little grandchildren. I, my one and only goal is to be able to do whatever I want to do, whenever I want to do it. And not have to worry about going up another set of steps, not worrying about what next house I have to sell.

• 55:06Lewis Howes?

  Hmm.

• 55:07Speaker 03

  And what turns me on is helping people, inspiring them. And so I just say to myself every single day, my name is Glenda Baker, only amazing things happen to me. My name is Glenda Baker, I'm a woman of action. And my name is Glenda Baker, and everybody's gonna know my name. And all I want to do is just help people build generational wealth through real estate.

• 55:28Lewis Howes?

  Wow, that's beautiful.

• 55:29Speaker 03

  And inspire them through my mistakes.

• 55:31Lewis Howes?

  Sure.

• 55:31Speaker 03

  Cause we don't all need to make the same mistake. Let me have been the guinea pig.

• 55:36Lewis Howes?

  Hmm. What would you say the three most painful mistakes in business that you've made over the last thirty plus years? That really taught you an important lesson. Maybe you had to learn it.

• 55:48Speaker 03

  Yeah.

• 55:48Lewis Howes?

  Over and over again.

• 55:49Speaker 03

  I didn't pay my taxes. That was probably, that was, that was probably the most eye-opening.

• 55:55Lewis Howes?

  Really?

• 55:55Speaker 03

  Thing, because I, I mean, I grew up with a single mother. Like, I didn't have anybody explained, like, I didn't even know you, that when you only got paid when you sold a house. I'm in real estate school, and the teacher says, now, when you sell a house, you make this much money. And I'm like, like, you don't get paid on Friday? Like.

• 56:17Lewis Howes?

  You have to sell to make money.

• 56:19Speaker 03

  I, like, I, I mean, I didn't know, I didn't know that. And I don't even try to get a job as an assistant. Nobody would even hire me, cause I mean, I'm barely out of high school, didn't go to college. And so, um, you know, I didn't understand about paying taxes. I mean, I made a hundred and thirty-seven thousand dollars on that one house, for God's sakes. Like, how much could the taxes be, right?

• 56:37Lewis Howes?

  Right, a lot.

• 56:38Speaker 03

  A lot, had no clue. Um, so, the biggest financial mistakes in business I have made have been, I didn't pay my taxes. Um, I made purchases based on ego. I let people, that didn't matter, influence me to make.

• 56:57Speaker 03

  Purchases that I shouldn't have.

• 56:59Lewis Howes?

  Really?

• 57:00Speaker 03

  Yeah, because.

• 57:02Lewis Howes?

  You mean people you knew or people you didn't know?

• 57:05Speaker 03

  I think it was a little bit of both. People that I knew and I thought, oh, well, you know, they're doing well and they're putting all of their money in this. Maybe I should do that. Or I believed all of the hype. And I think that that was a huge mistake. Just believing all of the hype that wasn't really the truth.

• 57:34Lewis Howes?

  Yeah.

• 57:35Speaker 03

  Not being able to discern well enough.

• 57:39Lewis Howes?

  Yeah.

• 57:40Speaker 03

  But being distracted. Probably one of the biggest money sucks of my life has been being distracted.

• 57:44Lewis Howes?

  What type of distractions over the last 30 years?

• 57:47Speaker 03

  All kinds of distractions, but mostly for me.

• 57:53Speaker 03

  I've been distracted by the shiny penny. I've been distracted by feeling like that I needed to be married to somebody, to be somebody.

• 58:06Speaker 03

  For many, I mean, I can remember it so like vividly in my head that I wasn't going to be worth anything unless I was married to somebody.

• 58:18Lewis Howes?

  Really?

• 58:19Speaker 03

  Some big person, like, you know, like Ted Turner. Like, you know, I'm thinking like, oh, I should be married to some like big shot person. I wouldn't be worth anything without that.

• 58:29Lewis Howes?

  Where did that come from?

• 58:30Speaker 03

  I don't, I don't, you know, I don't know. I think about like, I think about in my head.

• 58:39Speaker 03

  I was the only child

• 58:42Speaker 03

  in my school whose parents were divorced.

• 58:45Lewis Howes?

  Really?

• 58:47Speaker 03

  And I remember like seeing Mr. And Mrs. Myers and Mr. And Mrs. Bouchois. And I remember seeing them and thinking, you know, they had the two kids, the three kids, the dog, the house with the swimming pool, like the mama stayed at home and the daddy took care of everything. And I remember thinking to myself that I was so cheated.

• 59:13Lewis Howes?

  Hmm. You didn't have that.

• 59:15Speaker 03

  That I didn't have that life. And here was my mother. First off, she was old because she was 44 when I was born.

• 59:22Lewis Howes?

  Wow.

• 59:23Speaker 03

  So my mom was the oldest mom. She was the only divorced mom, single mom. My dad wasn't really in my life. And so here I am. And then on top of that, I have to have this back surgery and I'm in a body cast for a year in seventh grade and just everything. It just, and I've got this big accent, which I don't think I have, but lots of people think I do. But it just, I mean, there was just so many things. And I kept thinking that I was like the odd man out. I was like, I was different than everybody else. And rather than appreciating that difference, I worked so hard to be like everybody else.

• 1:00:07Lewis Howes?

  People pleasing, trying to fit in, doing whatever others.

• 1:00:10Speaker 03

  Oh, yeah. Trying to fit in. I mean, I, you know, here was the last kid picked on the playground and I wanted to fit in so bad.

• 1:00:18Lewis Howes?

  Yeah.

• 1:00:19Speaker 03

  And, and I couldn't, I couldn't ever figure out how to get those pieces of the puzzle together. I was, in back when I was in school, I mean, graduated from high school in 1984, you didn't call it bullying. Like today, would, you would say, oh, she was bullied as a child. But you didn't call it that then.

• 1:00:39Lewis Howes?

  Wouldn't call it then.

• 1:00:40Speaker 03

  You, you didn't call it anything. Toughen up.

• 1:00:42Lewis Howes?

  Normal life.

• 1:00:43Speaker 03

  Yeah. Suck it up, buttercup. You know, and, and I think that for me, a lot of, a lot of the distractions were just trying to be like everybody else, get somebody's attention and prove that I was worthy.

• 1:01:04Lewis Howes?

  I know that feeling. And you felt like you only had worth based on who you were with, it sounded like.

• 1:01:09Speaker 03

  Yeah.

• 1:01:10Lewis Howes?

  Or who you were friends with, or who you were dating, or who you were married to.

• 1:01:13Speaker 03

  Who I was associated with, who I was attached to was what defined my worth.

• 1:01:18Lewis Howes?

  Wow.

• 1:01:19Speaker 03

  And I think that that was huge. Once I realized that my value was determined by me was a turning point in my life.

• 1:01:31Lewis Howes?

  When did you learn that?

• 1:01:32Speaker 03

  Two thousand seventeen.

• 1:01:34Lewis Howes?

  Really?

• 1:01:34Speaker 03

  Yeah, not that long ago.

• 1:01:36Lewis Howes?

  What made you think that? And what made you realize and actually start to believe that?

• 1:01:43Speaker 03

  Um, I, I stopped, I struggled with drinking. Um, and I stopped drinking, um, at the end of two thousand fifteen. And I think that that really started giving me a lot of clarity. I think that, that alcohol had been, um, had, had disguised a lot of issues that I had.

• 1:02:03Lewis Howes?

  Yeah.

• 1:02:04Speaker 03

  But I think that when I stopped drinking and I tried, I was focused on being my best self. That helped. And then I went to a Tony Robbins event. And he talked about just being present in these moments, just being present and building these moments. And I went with my son. My son was really struggling at that time.

• 1:02:27Lewis Howes?

  How old was he then?

• 1:02:28Speaker 03

  Um, he was sixteen years old.

• 1:02:30Lewis Howes?

  Wow.

• 1:02:31Speaker 03

  And, um, he was really kind of going through a difficult season of his own life. And I, and I took him to the UPW for him.

• 1:02:40Lewis Howes?

  You're right. You got more out of it than he did, probably.

• 1:02:44Speaker 03

  And, um, we're there four days. And at the end, and my son's tall and he puts his arms around me. And my ear is right at his heart.

• 1:02:59Lewis Howes?

  Hmm.

• 1:03:00Speaker 03

  And I can hear his heartbeat. And he leans down and he says, I'm never gonna forget these four days with you.

• 1:03:07Lewis Howes?

  Wow.

• 1:03:10Speaker 03

  And I remembered in that very second, in that moment,

• 1:03:16Speaker 03

  like, here was this child watching ball.

• 1:03:20Speaker 03

  Like you, he deserves it. He deserves your value. He deserves you to be worthy. Wow. And so I said, I, I, I left that moment and I said, my life's goal is to string together moments of a lifetime, just like that one, that I could just feel. And I just, everything I do, every single thing I do is built around how I can build a moment in time for like my life, my children, and the, the things that, the people that I love. That's beautiful, Grandma.

• 1:03:58Lewis Howes?

  I hope you enjoyed today's episode and it inspired you on your journey towards greatness. Make sure to check out the show notes in the description for a full rundown of today's episode with all the important links. And if you want weekly exclusive bonus episodes with me personally, as well as ad free listening, then make sure to subscribe to our Greatness Plus channel exclusively on Apple Podcasts. Share this with a friend on social media and leave us a review on Apple Podcasts as well. Let me know what you enjoyed about this episode in that review. I really love hearing feedback from you and it helps us figure out how we can support and serve you moving forward. And I want to remind you, if no one has told you lately that you are loved, you are worthy, and you matter.

• 1:04:42Lewis Howes?

  And now it's time to go out there and do something great.