Rich people seem to have their mindsets hardwired differently from most people, but many of these same people share their biggest wealth-building secrets online. Small business guru Codie Sanchez recently shared a secret that rich people use to build wealth, and she regularly uses it herself.
“Turn every expense into an income stream,” she explained.
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Viewing every expense as an opportunity to make money can be an eye-opening experience. Here’s how you can make it happen.
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Sanchez mentions several examples of how she turned regular expenses into income. For instance, she bought vending machines when she realized she was spending too much money on gym snacks. The vending machine now makes her $1,000 per month.
While $1,000 per month isn’t life-changing, it’s part of a mindset shift that can lead to riches. Sanchez also bought part of a window cleaning company when she realized she was spending too much money on window cleaning. Making that investment generates cash flow, but it also allows her to save money on window cleaning services.
Sanchez repeated the process by buying part of a painting company. You can also follow this strategy by investing in shares of publicly traded corporations. For instance, if you spend a lot of money on Amazon, buying Amazon shares can help you pay for those expenses.
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Although it wouldn’t make sense to sell Amazon shares just to buy things on Amazon, those shares can gain value over time. If the returns compound, you can end up making more in Amazon stock gains than you spend on Amazon orders.
Sanchez proceeds to explain how you can invest in small businesses even if you have no money or experience. Seller financing makes equity stakes more accessible, but you can also raise money with an SBA loan. The only catch with an SBA loan is that it can take up to 90 days to get approved for a 7(a) loan.
If you buy the business outright, she suggests finding a top-tier professional and offering him 10% equity in your business. Then, the company’s cash flow can pay off the debt and the operator. This model involves the operator running the entire business for you.
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