Hey Contrarians,

It’s a lot harder to get lost when you have a map. The good news is, today’s newsletter is exactly that — a guide. What for, you ask?

For remaining fulfilled while working toward financial freedom (and not being miserable each step of the way). Speaking of step-by-step directions, before we dive in, we have something cool to share.

Something we’ve never done before…

Next Saturday (December 16th), Codie’s hosting an extensive, no-fluff crash course on buying profitable, small businesses.

This half-day, 100% live online event will be, by far, our deepest masterclass yet on biz-buying. It’s an incredible opportunity to start learning the ins and outs of it all.

Oh yeah, and it’s COMPLETELY FREE — but seats are limited and we anticipate they’ll get booked quickly.

Learn more and sign up here today.

Today in 5 minutes or less, you’ll learn:

✔️ Let’s play a game…

✔️ $0 → $100k: Heads down time

✔️ $100k → $200k: Know yourself and jump

✔️ $200k → $500k: The skin and save zone

✔️ You’ve made it to $500k. What now?

Let’s play a game…

Ever played Candy Land? It’s not that different from a game we’re calling Money Land.

The route to financial independence in Money Land is sprinkled with sweet victories, shifting incentives, and unexpected pitfalls like the gloomy molasses swamps of debt.

But step back, and there’s a clear path to the goal.

Navigating Money Land requires a keen eye for opportunities, a dash of risk-taking, and the ability to weather the occasional setback with resilience.

So why play?

Let’s start here: Recent research has found that, for most people, money’s positive effect on happiness plateaus at around half a million dollars in income.

Still, it’s important to note two things…

First, the data also shows that 15% of folks don’t see happiness rise with income over $100k. It’s why they’re known as the “rich and miserable.”

Second, as we all know, getting to $500k is no piece of cake, which might explain the first point.

Reaching that point often requires investing tons of time and money, ironically enough. The push to $500k can lead to despair, dissatisfaction, and a lack of purpose.

So how do we withstand what it takes to get that money while building toward it?

We follow the map of Money Land and its four phases.

This isn’t a guide to making $500k. It’s a guide for how to make it so you stay fulfilled. You can keep it in your back pocket for reference as you level up.

Ready to roll?

$0 → $100k: Heads Down Time

We call this first phase the Heads Down Zone.

Spoiler: it sucks.

For many, “six figures” is a right of passage.

Charlie Munger, who passed away recently, said it best.

He continued, “I don’t care what you have to do — if it means walking everywhere and not eating anything that wasn’t purchased with a coupon, find a way to get your hands on $100k. After that, you can ease off the gas a little bit.”

To get there, you will likely have to work harder than you want, for longer than you want, and on things you might not even want — which all sounds like a pretty sour recipe.

So the key to making it not suck so much is to become obsessed with learning.

Here’s the secret…

Once you can cover your basic needs, become obsessed with learning something. With building a skillset. With achieving that $100k milestone through personal and professional development.

Turn it into a game. A challenge. Have fun with it, and watch the heads-down time feel more like a sugar rush.

(Curious how Codie hit her first $100k? Watch this video.)

$100k → $200k: Know Yourself and Jump

This section is for once you’re at $100k, and it’s what we call the “Know Yourself and Jump Zone.”

Yes, it’s a weird name, but just go with it.

Anyway, there are two tricks you can keep up your sleeve to get to $200k in a fulfilling way…

1. The self-interview framework

This framework solves an age-old paradox.

What you’re passionate about often doesn’t pay the bills and the things that do often make you want to throat-punch your boss, which is usually frowned upon.

So a self-interview can help you position yourself to find some balance — to leverage what you’re good at and then become passionate about being great at it.

Here’s how it works:

• Write down your peaks and valleys. The peaks are the specific things you’ve learned you like and want. “Meeting other smart people,” “making more money when I do more work,” and “having geographic flexibility,” are all good examples.
  
  
• Valleys could include things like “a boss you hate,” “a cubicle,” and “highly repetitive work.” Once that’s done, list out what specifically makes you feel that way about each peak and valley.

Use this map of peaks and valleys to guide your way to identifying outlets that leverage your unique skillset but align more closely with where your head’s at.

2. Ikigai

We’re borrowing this one from the Japanese.

Here’s how it works.

You draw out four circles: things you love to do, things you’re good at, things you can be paid for, and things you think the world needs. In a perfect world, the thing that you do sits right in the middle.

Now, is this a perfect world we live in?

Hell no.

But consistently strategize around this, and you’ll find ways to keep yourself more fulfilled over time. When you find those outlets, remember: turn them into obsessions.

If you’re willing to become obsessed with something, particularly something that fulfills you, and you spend significant time on it, then the competition working to capitalize on it narrows dramatically.

If there’s one tool that’s really hard to compete with and that’s available to anyone, it’s obsession.

$200k → $500k: Skin and Save

Congrats, you’ve made it way further than most people ever get.

You’re now in what we call the “Skin and Save Zones,” where you’ll have to start thinking differently…

The skin zone

The first way is by focusing on getting skin in the game. In other words, don’t just get paid for the hunt, but eat what you kill.

At this point, you don’t need to leave your job, but you do need to make sure if you take part in a win you get paid for it.

That means bonuses, upside, equity, profit share, incentive alignment, and so on.

The CEO of Goldman Sachs earns $2M a year in salary alone. Nothing crazy, for that title. But he’s also making tens of millions a year in total compensation.

Skin in the game means if you win, you earn, if you lose, you don’t and you may even have a downside.

(Check out this article to see how much money Codie left on the table when she left Goldman.)

The save zone

The other side is the save zone, and it’s all about lifestyle creep.

At this point, some of your friends are making six figures, too. Some are making more than you. You’ve got a car. They’ve got a nicer car. You used to have BYOB chills, but now y’all go out to fancy dinners.

The sneaky thing that happens as you make more money is that you start to spend more money.

The mission: Level up your life at a rate slower than your income growth.

Entrepreneur and investor Naval Ravikant has a great quote on this:

“People who are living far below their means enjoy a freedom that busy people upgrading their lifestyles can’t fathom.”

Even so, it’s hard to get rich just by spending your time saving money. That’s why you also need to save time to make money.

When Codie had one of her very first businesses, a consulting service for US-Mexico cross-border trade (which failed), she used to brag about how the website cost almost nothing and a logo came with it for free.

If you’re going to virtue signal, choose sacrifices over spending.

You’ll move faster, remain focused, and stay fulfilled longer.

You’ve Made it to $500k. What Now?

Alrighty folks, you’ve hit the plateau — and look at that, you’re not miserable as a door knob.

Now how do you remain fulfilled?

The first thing to do is internalize this: comparison is the thief of joy.

Imagine a bar with 10 people who all make $500k a year and feel pretty good about themselves.

Then Jeff Bezos walks in and the average income jumps to something like $1.2B (Since his net worth has risen ~$13B annually over the last decade).

Wealth can be contagious, but so can jealousy. Suddenly the happiness of the bar goes down.

Comparative jealousy is a symptom of a misery flu. Deny this from happening.

You’ve scraped and climbed your way up. Someone will always have more than you. So what do you do now?

Focus extra hard on becoming a human being, not a human doing. (Not sure who came up with that line, but it’s a good one).

Prioritize experience over materialism.

Practice giving over receiving.

Become extra focused on grabbing a slice of life’s pie, because it’s so very rich.

The really rich don’t do it for the money…

Alright, that’s not true.

But at some point, they also do it for the fun, and the money becomes a way of keeping score.

So go unapologetically chase your first $500K. Yes, it’s a lot. Yes, it’ll take time. But it’s not a ridiculous goal.

Keep plugging away, developing skills, building on ideas, and trying out as much as you can. Have fun as you go, and use this guide to stay focused and fulfilled along the way. Kapish?

Let’s light this candle.

SO not boring...

😮 Wowza: Google’s new product gives ChatGPT a RUN for its money…

✍️ Take notes: How Codie built multiple income streams while an employee

🤣 Gotta love it: A Reddit thread about the “dumbest biz’s you’ve seen do well”

✔️ What’d you think of this week’s newsletter? Hit reply to let us know!

✔️ Check out our Contrarian Community. Learn how to buy your first (or next) business with our expert guidance, support, and accountability.

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