The Money Expert: Theyre Lying to You—Academic Skills Dont Translate to a Stable Career...

Here are the top 10 key takeaways from Cody Sanchez's conversation with Jay Shetty about building wealth through business ownership and clever financial strategies that most people overlook.

1. Ownership is the path to financial freedom

Ownership emerges as the fundamental principle for building wealth. Cody Sanchez highlights that 70% of millionaires are self-made, and 68% have some form of ownership - whether they've bought a business, have equity in a business, or built a business. This statistic reveals a clear pattern that ownership, not employment alone, creates substantial wealth.

The concept of ownership extends beyond just starting your own business. It can include acquiring equity in existing companies, buying into franchises, or negotiating for ownership stakes based on your skills. Without some form of ownership, the financial ceiling is typically limited by salary alone, regardless of how prestigious the job may be.

2. The language of money must be learned

Learning the language of money is essential for financial success. Like any language, financial literacy requires study, practice, and application. This involves understanding terms, concepts, and principles related to business valuation, deal-making, and investment strategies. Developing this literacy can transform how you view opportunities around you.

Many people avoid financial conversations because they feel intimidated or believe money discussions are taboo. According to Sanchez, 62% of Americans don't want to talk about money. This avoidance perpetuates a cycle of financial illiteracy that keeps wealth concentrated among those who understand financial principles. Breaking this cycle starts with a willingness to openly discuss, learn about, and engage with financial concepts.

3. Expertise equity can be leveraged for ownership

Expertise equity represents using your skills and knowledge to gain ownership in businesses without requiring significant capital investment. If you can help a business grow revenue, cut costs, or reduce the pain points of business owners, you can negotiate for equity or profit-sharing arrangements. This approach allows individuals who may not have money to invest to still gain ownership.

This strategy involves identifying your marketable skills, finding businesses that could benefit from those skills, and proposing arrangements where you receive a percentage of the value you create. For example, if you have marketing expertise, you might offer to help a small business increase revenue by 50% in exchange for keeping 10% of that growth. Such arrangements create win-win situations where business owners have little downside risk while you gain valuable ownership stakes.

4. Main Street businesses offer overlooked wealth potential

Small, unglamorous local businesses - what Sanchez calls "Main Street businesses" - often represent significant untapped wealth opportunities. These include service businesses like plumbing companies, equipment rental firms, laundromats, landscaping services, and other "boring" ventures that consistently generate profits but don't attract attention from status-seeking entrepreneurs.

Contrary to popular belief, many of the world's wealthiest individuals built their fortunes in these ordinary industries rather than through flashy tech startups or entertainment. Private equity firms understand this reality and have increased their ownership of small businesses from 4% in 2000 to approximately 20% today. Everyday entrepreneurs can follow this model by focusing on profitable, established local businesses rather than chasing trendy but risky ventures.

The advantage of these businesses is that they typically have proven business models, existing customer bases, and steady cash flow. While they might not make exciting dinner conversation, they can provide substantial returns without requiring revolutionary ideas or massive startup capital.

5. Business acquisition can be superior to startups

Purchasing existing businesses often presents less risk than starting new ventures from scratch. Sanchez points out that 90% of startups fail within any ten-year period, and most make zero dollars for the first three years. Even after that difficult period, the average entrepreneur earns only about $46,000 annually. These statistics highlight the brutal reality of the startup path.

In contrast, acquiring existing businesses with proven revenue streams, established customer relationships, and operational systems can significantly reduce risk. The business already has demonstrated viability in the marketplace. While there's still work involved in improving and growing acquired businesses, the foundational challenge of proving market fit has already been overcome.

Acquisition also offers the possibility of leveraging other people's money through creative deal structures, seller financing, or bringing in investment partners. This approach allows entrepreneurs to control assets much larger than what they could afford to purchase outright, accelerating their path to financial independence.

6. The great wealth transfer creates unprecedented opportunity

The upcoming transfer of wealth from Baby Boomers to younger generations represents a historic opportunity for acquiring businesses. Baby Boomers currently own 60% of all small businesses in the US and control approximately $68 trillion in wealth. As this generation retires, many of these business owners will need succession plans or buyers for their companies.

This demographic shift creates a buyer's market for those prepared to acquire businesses. Many Baby Boomer business owners don't have family members interested in taking over their companies. Without proper succession planning, these businesses risk closing entirely, despite being profitable and valuable. This represents a potential win-win where aging owners can monetize their life's work while younger entrepreneurs can acquire established businesses.

The challenge and opportunity lie in bridging the gap between generations that have previously been at odds. Young people who can overcome their "OK Boomer" skepticism and appreciate the value of these established businesses may find willing mentors and favorable deal terms from Boomers looking to preserve their legacy through a successful transition.

7. Deal-making skills are essential for wealth creation

Understanding how to structure and negotiate deals is a fundamental skill for building wealth. Proper deal structuring can protect all parties involved, create win-win scenarios, and maximize returns on investment. This applies whether you're acquiring a business, investing in someone else's company, or setting up a partnership.

Sanchez advises using milestone-based agreements rather than giving away equity upfront. For example, granting equity only after specific performance targets are met or after a certain time period (cliff-based investing) protects the primary business owner while still incentivizing partners. This approach avoids costly mistakes that can happen when equity is distributed too freely without proper protections.

Learning from experienced dealmakers is valuable because the right deal structure can dramatically change outcomes. Even a talented entrepreneur who doesn't understand deal-making may end up with little to show for their efforts, while skilled dealmakers can create substantial wealth from the same opportunities through better terms, protections, and incentives.

8. Gateway businesses offer low-risk entry points

For those new to business ownership, "gateway drug businesses" like vending machines provide accessible entry points with relatively low cost and complexity. These simple operations allow entrepreneurs to learn business fundamentals without overwhelming complexity or capital requirements. They function as learning vehicles as much as income sources.

Similarly, "people-light businesses" such as laundromats require minimal staff and offer straightforward operations while still providing regular income. These businesses can be understood and managed without specialized expertise, making them ideal for first-time business owners. The simplicity of the business model allows new entrepreneurs to focus on mastering basics like customer service, maintenance, and cash flow management.

Starting with these more accessible businesses builds confidence and competence that can later be applied to larger, more complex acquisitions. This stepped approach reduces risk while still providing real-world business education that no classroom can match. It creates a foundation for eventually moving into more substantial business ownership.

9. Effective mentorship requires strategic relationship building

Cultivating mentors requires a thoughtful, reciprocal approach rather than direct requests. Sanchez shares her strategy of making people "mentors who never knew they were her mentors." This involves asking specific, thoughtful questions, applying their advice, and reporting back on the results without demanding formal mentorship. Such relationships develop naturally when mentors see their input genuinely valued and implemented.

The most effective approach starts with asking targeted, reasonable questions that respect the potential mentor's time. Instead of requesting comprehensive guidance, begin with focused queries that can be answered briefly. Follow up by sharing how you applied their advice and the results you achieved. This creates a positive feedback loop where the mentor feels their input makes a difference without being burdened by excessive demands.

When seeking mentors, target individuals one or two levels beyond your current position rather than industry icons. Be consistent in expressing gratitude and maintain relationships even after you've surpassed them in some areas. This longitudinal approach to mentorship creates a network of supporters who take pride in your success and may introduce you to their own connections, expanding your opportunities exponentially.

10. Traditional paths to wealth are often deliberately obscured

Many financial "truths" we accept are actually designed to limit wealth creation for average people. The taboo around discussing money, the promotion of salary-focused career paths, and the glorification of high-risk entrepreneurship all serve to distract from proven wealth-building strategies. This obscuring of practical money-making approaches benefits those who already control substantial assets.

Traditional financial education often emphasizes saving and investing in markets rather than building or acquiring businesses where the real wealth is created. Young people are particularly vulnerable to distraction through speculative investments like day trading, cryptocurrency, or NFTs rather than focusing on sustainable business ownership. These distractions typically result in money flowing from inexperienced hands to those who already understand the system.

Breaking free from these limitations requires questioning conventional wisdom about career paths and wealth building. By studying how wealth is actually created rather than how we're told it's created, individuals can discover opportunities hidden in plain sight. This might mean looking beyond flashy startups to "boring" but profitable local businesses, or focusing on ownership rather than prestigious job titles with no equity component.