How Much Does It Cost To Get Started?

How Much Does It Cost To Get Started?

By John Montoya

June 15, 2010


This is probably the most common question I get asked after sharing with people how they can bypass the traditional banking system and create a banking system they can own and control, and therefore generate profits from. The answer is really simple. However, in order from someone to really understand the concept of Infinite Banking, I answer their question with a question so they can begin to wrap their mind around the concept:

"How much does it cost you to save money now?"

It's a pretty straight forward question but I never get the most obvious answer. The cost is nothing, nada, zilch. For example, if you save $200 every month, it cost you nothing to save that $200. It certainly requires discipline to save money, but there's no cost involved. According today's article in the L.A. Times, there is $5.06 trillion dollars sitting in passport savings and money market accounts earning closing to 0%. That's really quite astonishing on many levels.

The reason why our savings rate is increasing is because people are scared about losing money. I think a certain level of paranoia or call it caution, is a good thing considering the amount of risk people were willing to stomach in the past decade in order to chase rate of return. Being weary of losing money means people are being more rational about the risk/rewards of investing. If people start to take a greater interest on the return OF their money versus the return ON their money, I think this "lost" decade won't have been for nothing. However, some could argue, and perhaps rightly so, that having so much money currently sitting on the sidelines is an extreme over reaction to the volatility the stock market has been experiencing since late 2008.

Whatever the case may be, people are saving money and I mean really saving money the old fashioned way. I don't mean "investing to save" which is what most people do with their 401k/IRA contributions. True investing means that money is at risk of loss or has the potential for gain. Saving is simply socking away money which you know will be there when you need it. So many of us have been hypnotized into believing that money we put into our 401k/IRA's is our savings, but there's a reason why government statistics do not include qualified retirement contributions as part of their savings statistics. I believe it's because this 401k/IRA money could be here today and gone tomorrow which we all know can happen with stock market investments no matter how savvy an investor one may be. Here today and gone tomorrow hardly implies savings you can count on when you need it.

So what has it cost the American public to save $5.06 trillion dollars; money deposited into accounts with the confidence it will be liquid should it be needed? The answer is nothing. Every dollar of that $5.06 trillion dollars is liquid and available for withdrawal.

It works the same way when you own and control your own banking system. It costs you nothing because ultimately what you will have funded the banking system with will include every dollar you saved. Furthermore, the longer you have the banking system, the more profitable it will become.

So what are the next most frequently asked questions?

"It sounds too good to be true. There has to be a negative or more people would be doing it. Why aren't more people doing this and what are the downfalls, if any, to implementing this strategy?"

Stay tuned as I will answer this for you as well.

For more information about Becoming Your Own Banker or to attend a workshop, please contact JLM Wealth Strategies at 800-208-6141