Codie Sanchez: The Money Lie Keeping Millennials From Building Real Wealth
Many millennials were taught that investing in the stock market is the smartest path to building wealth. But Codie Sanchez, founder of Contrarian Thinking, argues that approach may be better suited for preserving money than significantly growing it.
Instead, she believes business ownership offers a more direct path to generating income and building long-term wealth. Here’s why Sanchez said millennials may need to rethink how they invest.
Trending Now: Rachel Cruze -- How You Compare Financially to the Average American
Consider This: 7 Low-Effort Ways To Make Passive Income (You Can Start This Week)
Codie Sanchez: Stocks Are Better for Wealth Preservation Than Wealth Building
Sanchez, who recently released the 2026 State of Main Street report, believes the stock market primarily benefits those who already have significant capital.
"I think the stock market is incredible for wealth preservation," she told MoneyLion. "It's incredible for long-term compounding. It's not made for making you money. That's not where you're going to make your money unless you have a ton of money."
Why She Thinks Millennials Were Sold the Wrong Expectation
Sanchez said many millennials were led to believe that active investing — especially through platforms that make trading feel accessible — could accelerate wealth-building.
"That is a lie our generation got sold because a bunch of things like Robinhood came out," Sanchez said. "And we felt like we could gamify this system and we could get the big guys. Well, that hasn't worked out very well for us. And so we have to figure out more creative ways that are harder, but earn you way more money."
Why Stocks May Not Make You Rich
A key issue, according to Sanchez, is that stocks don’t typically generate meaningful income on their own.
"Most stocks do not have dividends that they pay," Sanchez said. "If they do pay dividends, they're really small. So if you want to start getting cash flow, the stock market's a hard place to get it unless you have a ton of money."
She also points to volatility as another challenge for those trying to build wealth quickly.
"Once you put [money] in the stock market, you have a lot of volatility," Sanchez said. "It could go up and down like crazy over time. But we know on average, you might make 10% a year — if you're good, and you stay in the market for a really long time."
Why Business Ownership May Offer More Upside
Instead of relying on market returns, Sanchez recommends considering business ownership as a way to grow wealth more quickly.
"It's not crazy for a business to 2X in a year or 3X or 5X," she said. "And so you actually have a real opportunity to make real wealth."
For millennials looking to grow wealth earlier in life, she suggests exploring options — like business ownership — that prioritize cash flow and upside potential alongside traditional investing.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
More From MoneyLion: