Understanding how Becoming Your Own Banker: The Infinite Banking Concept (IBC) works begins with understanding one very fundamentally important money principle. Some people will get it right away and for others it takes a bit longer, but what I've discovered over the years in my professional practice is that when you dedicate yourself to learning the truth about money and practicing IBC, you will ultimately have the IBC epiphany and be able to fully comprehend this one very simple truth about money:
You finance everything you buy.
You either lose the interest you could have earned or you agree to pay interest to someone else, most commonly your bank or finance company. It's as simple a principle as that. Flip a coin and you have two possible outcomes: heads or tails. It's the same scenario when you buy something. Give up interest earned as you pay cash or pay interest by financing it with a 3rd party. The interest you lose on your money adds up into the hundreds of thousands over one's lifetime. Is it any wonder why there are multiple banks on every major street corner in every town across the country looking for deposits? (As a side note, you should be asking yourself,"what is it that bankers know that I don't?)
Now it might seem to you either scenario, paying cash or financing, is a losing proposition. And it is a losing proposition for most of you just learning about Becoming Your Own Banker and not yet practicing it. However, it is a winning proposition for the owners of the banking system. Unfortunately, we've been taught to be customers of the banking system rather than owners of it.
Our lack of education about how the banking system works leaves us in a very vulnerable and powerless position. We are conscious about our ability to earn millions of dollars of income in our lifetime, but we're confused about where it all goes. This is because no one ever taught us how to harness our savings to re-deploy it over and over again within a banking system we own, control, and, therefore, profit from. For generations we have been ingrained to continually save money the way our family, friends, and neighbors do which means we've never investigated or been presented with an opportunity to own our banking system.
For this reason, the most prudent thing you can do is create your own banking system as written about in books such as Becoming Your Own Banker by R. Nelson Nash and Bank on Yourself by Pamela Yellen. In doing so, you'll eliminate the opportunity cost of paying cash or financing at your lenders terms. The interest you once squandered and principal of capital transferred will be re-directed back to your own banking system for a lifetime of use. Thus, you will be capitalizing on the things you'll buy in your lifetime instead of letting it slip through your hands and back to the bank.
As Nelson Nash is fond of saying,"You should receive two paychecks. One paycheck from what you do for a living and one paycheck from your banking system." He also says,"Businesses come and go, but the business of banking eternal." Since you are captive to your local bank, doesn't it make sense to be in the very business you use everyday?
If it sounds to good to be true, you're not alone in thinking so. This is only because, like most people, you haven't been presented with this knowledge before or, if you were like me, you failed to grasp the enormity of its power in creating risk-free, tax-free wealth for yourself now and your future generations the first time IBC was presented to you.
Before you continue on your journey learning about Becoming Your Own Banker, I'd like to recommend you open your mind to one simple truth: you finance everything you buy.
This blog, as well as my website at JLMWealthStrategies.com, is full of F.A.Q.s and articles relating to Becoming Your Own Banker: The Infinite Banking Concept. At this point, you can choose to ignore what you learn or you can heed this writers advice. I can tell you what the smart people I meet do with their personal and business money. They take control of it and having your own banking system gives you the ultimate power to do so.
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