You’re already a Banker “timeline”
The characteristics of Infinite Banking:
1. You control your own money
2. Earn guarantees on deposits
3. Grows tax-free
4. Penalty-free access
To have an appreciation for the financing function of our daily lives, we must first examine ourselves. It is an awkward-sounding but true statement that everything in our life is financed, we either save, save, save and spend the money, or we borrow and make payments, make payments until we are back to broke. Either way, both lead back to the same place: “0” and one step farther down the timeline.
Everything in our life is financed. Either we save and pay cash, giving up the future compounding of that capital. Or we borrow and pay interest to someone else. Either method leads back to the same financial position, and farther down the timeline.
The Cash Value inside the policy is a guaranteed interest-bearing account. In this process, we take loans against the CV, repaying the loans. With every payment, the CV is immediately available to use in your system again. Having the discipline to pay back the loans, and pay “ourselves” interest, insures perpetual compounding of accessible money.
Now for the “spender” who is shaking his head at the “Pay yourself interest part,” the fact is that you have spent your life paying the bank interest. Why frown on paying yourself interest? You are telling yourself that the bank’s money is more valuable than your money.
Nelson makes the statement that each person really has two vocations: the day job that we make our living and banking. Problem is, having never known that we have been bankers, as individuals we have all performed pretty poorly at it. Because we didn’t know we were owners of the bank.
The problem in America isn’t so
much what people don’t know; the
problem is what people think they
know that just ain’t so.
Will Rogers