Education

Once You Get Money, Buy These 10 Things Immediately

by Codie Sanchez

📚 Main topics

Use a buyback rateDivide your annual net income by roughly 2,000 work hours, then halve your hourly rate. If someone can take a task off your plate for less than that amount, outsourcing it may be worthwhile. 0:31
Upgrade your appearance strategicallyRather than filling your wardrobe with expensive items, invest in one standout piece and replace a few worn-out clothes. She also recommends considering grooming and skincare upgrades that fit your budget. 1:02
Pay for proximityLiving or working closer to valuable opportunities and spending time in spaces with ambitious people can create access to relationships, ideas, and career opportunities. 2:36
Hire a tax advisorFor people earning a few hundred thousand dollars a year, a tax professional may help reduce taxes legally; for investing, she prefers low-cost options such as Vanguard or Fidelity. 6:44
Create an exit fundSet aside money for the cost of ending leases, contracts, or other commitments, so you can leave situations that are no longer working without being trapped by the expense. 7:45
Spend on better foodEating nutritious meals can support focus and energy. Compare meal services, prepared food, or a chef against the time and cost of shopping and cooking. 9:48
Delegate administrative workUse the “cut, automate, delegate, outsource” approach, starting with lower-cost help such as a virtual assistant and scaling up as your needs grow. 10:50
Improve your sleepConsider practical upgrades such as a better mattress, earplugs, or a sleep mask; more expensive equipment is optional and should be weighed against its value to you. 14:33
Invest in repeatable skillsPrioritize skills you will use repeatedly, especially sales, negotiation, operations, and business processes. 16:05
Buy back timeArrange services to come to you when possible, and outsource tasks that consume time you could spend on higher-value work or personal priorities. 17:38

✨ Key takeaways

Spend to create valueAn upgrade is most useful when it gives you time back, improves your ability to earn, or helps you perform better—not merely when it makes you look wealthy. 0:00
Your environment mattersThe people and opportunities around you can influence your economic mobility, so changing your surroundings may be easier than trying to change every habit at once. 3:38
Budget for the way outBefore signing a recurring agreement, find out what it would cost to leave and set that amount aside. 8:16
Delegate with intentionStart with tasks that do not require your specific expertise, then use the money and time saved to focus on work that can generate more income. 11:22

🧠 Lessons learned

Evaluate purchases by their returnApply the buyback rate to services and upgrades, and choose options that make sense for your income and circumstances. 1:02
Consider the full cost of commitmentsThe cost of exiting a lease, contract, or vendor relationship can be significant, so account for it before committing. 8:16
Prioritize skills you will reuseThe more often a skill will help you earn or make better decisions, the more valuable it may be to invest in learning it. 16:36
Treat time as a resourceDoing everything yourself may feel faster once, but delegating repeatable tasks can free up substantial time over the long term. 14:01

🏁 Conclusion/next steps

Identify tasks to hand offWrite down three tasks that consume your week but do not require you personally, then look for ways to cut, automate, delegate, or outsource them. 14:33
Start an exit fundList three to five expenses you want to cancel and save toward the cost of ending those commitments. 9:18
Make one practical upgradeChoose an upgrade that improves your time, health, skills, or earning potential, and check that its cost fits your buyback rate. 15:34

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Transcript excerpt

0:00 The hard part isn't always making money, it's knowing what to do with it and how to keep it. Most financial advice tells you what not to buy and what assets to invest in. [music] I am going to do that in this video, but I'm also going to tell you the 10 things that you should actually upgrade today. [music] Because if you make more money, you should be able to enjoy it and also sometimes spending it makes you [music] even more. And number three is the one almost nobody spends on and I will never go back. But, there is one thing we need to get straight first. Before you buy anything that feels like a lifestyle upgrade, ask one question. Does this buy

0:31 back my life or does it try to make me look richer without a reason? To answer that, you need what I call your buyback rate. If I can actually pay someone less than half of what my hour is worth to take a task off my plate, I usually should. Here's why. If you take your net income and you divide it by the total number of hours worked, there are about 2,000 or so working hours in a year, which will give you your hourly income. [music] Now, I want you to take that and divide it by two. That's how you get your your 50% margin. Any task you can give to

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