Lifestyle

Infinite Banking Concept: Repaying Your Loans

Why is it important to repay your policy loans? You may have understood or heard that policy loans are unstructured, which basically means there’s no coupon booklet or payment process. You’re in control of the process, which means you determine if, when, and how quickly those loans are paid. But now the question becomes, why is it important to pay back those loans? 

Oftentimes, when people are thinking about the infinite banking concept, they’ll take a policy loan and then question, “Why do I have to pay this back? It’s my money.” Well, they don’t fully understand the process. 

You see, when you borrow against your cash value in a life insurance policy, you’re getting a separate loan from the insurance company’s general account. The money in your policy stays in your policy and it continues to earn uninterrupted compounding of interest. The second part is the loan that you get, which is literally a loan against the equity of your policy. The life insurance company calculates the equity and calculates how much they can loan you based on that amount of equity. So you are taking a loan from the insurance company. And the importance of paying it back is that the faster you pay it back, the less interest you pay the insurance company and the more equity that’s available for you to loan or borrow again. This is the concept of turning over your money so that the velocity of money can benefit you. 

Keep this in mind. Every purchase you make is financed whether you pay cash, go through the traditional financing method, or take a life insurance policy loan. Only with traditional financing do you get a coupon book that says you need to pay this amount back at this rate. And with the traditional savings account or the life insurance policy loan, it’s a double-edged sword in that you don’t have to pay it back and you don’t have to pay it back. But keep in mind, we always say it’s not what you buy. It’s how you pay for it that matters. And when you’re in control of the banking function, you get to control the terms and conditions. But that doesn’t mean that you shouldn’t pay it back. 

One of Nelson Nash’s cardinal rules, (he had four cardinal rules), number three was “Don’t Steal the Peas.” And what did he mean by that? He meant that if you borrow money against your life insurance policy, you should pay it back. Why? Because you’re going to need money again in the future. And if the money’s not back in the policy, then you’re going to have to go back to the traditional way of borrowing with a bank. And now you’re not in control. 

So you may be wondering what happens if I don’t pay my policy alone? And that’s simple. Sometimes people have this policy loan, and, especially if it’s a large policy loan, the policy loan will continue to accrue interest. Meaning, that if you don’t pay back at least the loan interest, that loan interest will get tacked on as loan principal and tie up more of your policy’s equity year after year. 

And that can put you in a position where it becomes so insurmountable that you have to either walk away from the policy or reduce the face amount of the policy in order to eliminate a large portion or maybe even all of the loan. But keep in mind, that can also trigger a taxable event, and that full taxable event will happen in the year of surrender, meaning anything that’s surrendered over the premiums you paid is going to be fully taxable as ordinary income. So that’s not really a position you want to put yourself in. 

So the next question becomes: if I have to pay interest back to the insurance company and have the risk of a taxable gain, what is even the benefit of taking this policy loan? 

Well, that’s simple. The benefit is that you’re in control. We have many clients who take loans and pay them back. We have many clients who take loans, start a repayment process, and have to suspend or reduce the amount they’re paying back because of a temporary cash flow situation. That’s the beauty of being in control of the process. You set the terms and conditions of the loans and you could pay it back, stop, reduce, whatever. Again. That’s the issue of control. But what we’re talking about also is that if there’s a long-term situation where the cash flow isn’t there to pay back a large, perhaps insurmountable loan, you do have options. And that’s where we can help you. 

If you’d like to get started with a specially designed whole life insurance policy designed for cash accumulation to put this process to work for you. Or if you currently have a life insurance policy loan or are thinking about taking one, please visit our website at tier1capital.com and schedule a free strategy session today. We’d be happy to discuss the options with you. 

And remember, it’s not how much money you make, it’s how much money you keep that really matters.

Become Your Own Bank With a Life Insurance Policy

You’ve heard us say it before and we’ll say it again: Whoever controls your cash flow controls your life. Today, we’re going to talk about why it’s important to control the banking function in your life. 

We’ve often said it’s important for you to be in control of the banking function in your life. Why is that important? Well, let’s take a look at the cast of characters in the play that we call banking. 

  • First, there’s a depositor. Nothing can happen without a depositor. 
  • Next is the borrower. The borrower pays for everything.  
  • And in the middle is the banker. The banker matches up depositors and borrowers and collects a fee in order to do it. 

But keep in mind that the banker in the middle controls everything. And that’s why it’s crucial for you to be in control of the banking function in your life. The process of banking. 

So let’s take a look at what it looks like when you’re not in control of the banking function in your life. There are two times you’re giving up control of that cash flow. 

The first is when you’re paying cash for purchases, and the second is when you’re financing through a bank or credit company.

So let’s take a look at that first option of paying cash for a purchase. 

  1. The first step is to save. Capitalize that bank account so you have enough money to afford the item you want to buy. 
  2. Step number two is to “Drain the Tank”. And once you drain that tank and make that purchase, you have given up control of all of that money. And you’ll never see the interest you don’t earn. 

Like Nelson Nash used to say: “You’ve abdicated your responsibility as a steward of that money.” 

 

The second way you could give up control of your money is by making purchases and using the bank to finance those purchases. 

With this method, you’re borrowing from the bank and paying them a fee for the privilege of using their money. And actually, it’s not their money. It’s the depositor’s money. Remember, they’re linking everyone up. With this option, you’re literally obligating a portion of your income to the bank. And as Nelson said, you’ve abdicated your responsibility as a steward of that future cash flow. So what’s the solution? How do you control the banking function in your life? Well, let’s talk about that. 

If the recipe for being in the banking business is to have depositors and borrowers, then think of it, on a daily basis, what are you, your family, and your business? Aren’t you depositors and borrowers? So if the recipe is depositors and borrowers, you can literally be a bank. But how do you do it? That’s the process that you need to control, and that’s where we could help you. 

So here’s what normal borrowing looks like. You deposit money in the bank and the bank matches you up with the borrower. The borrower takes the money and pays the bank back in increments. The bank collects a fee for that and then pays a tiny little bit to you, the depositor. Now, this is where the magic of banking happens after you make that first payment back to the bank. They’re able to turn that over and lend it out again. And when you make your second month’s payment, they lend that out again. And this is the velocity of banking. 

You see the basis of any business – whether it’s a car dealership, whether it’s a McDonald’s franchise, or whether it’s banking – the cornerstone of that business is turning over its inventory. It doesn’t matter if your inventory is used or new automobiles, McDonald’s hamburgers, or money. It just so happens that in banking, their inventory is depositors’ money. So the quicker they could turn that over, the faster they’re able to earn more profit. 

Let’s see what it looks like when you’re in control of the banking function. You see, you’re the depositor, you’re the bank, and you are the borrower. So let’s assume that your business wants to buy a vehicle and the vehicle is going to cost $20,000. You go to your reserve of money, a specially designed life insurance policy, and you loan it to the bank (you). And then you turn around and loan that money to your business. Now your business makes a payment back to the bank (you), and the bank (you) pays the depositor (you) a portion of that interest. The excess interest in between is the profit of the bank. 

But the key to the infinite banking process is that you are still earning interest on your deposit because you collateralize a loan against your life insurance policy. Rule number one: Never Drain the Tank.

 

So again, this is where the magic of banking happens for you this time. Because you are the bank, you get to constantly loan money out to you and then recapitalize that bank. So you get to benefit from the velocity of banking. Keep in mind the profits of banking and the principle of velocity banking is going to happen with or without you being in control. The question is, do you want to be in control and earn the profits or do you want to abdicate that control to the bank and let them make the profits? 

If you’d like to get started with a specially designed whole life insurance policy designed for cash accumulation so you can put this process to work for you and your family. Be sure to visit our website at tier1capital.com. Feel free to schedule your free strategy session or check out our free web course to learn in detail how we take people through this process.

And remember, it’s not how much money you make. It’s how much money you keep that really matters.

How Do I Get Out of Debt?

Are you dreaming of the day when you finally get to ring the “debt-free bell”? If that sounds like you, stick around to the end of this blog because we are going to do a deep dive on whether it’s better to be debt-free or to own your own debt.

There are many “financial gurus” out there advising people on getting out of debt and, certainly, for a segment of the population, that is an ideal goal. Many people are buried in debt and they need to get out of it. We are not arguing that point, but there’s another segment of the population who makes a really good income and has some debt. And, unfortunately, this advice is being pushed on them as well. And those people are literally living a life of hell getting out of debt or trying to be debt-free. 

And the problem with this advice is that by putting all of your free cash flow towards your debts, you’re not able to save. And a lot of times the advice is for you to save in a qualified retirement account where you can’t access that money. So, what happens is you get out of debt, but you still have no access to cash. And so what happens? You have to go back into debt. 

The solution to this is to start saving in a place where you have complete liquidity, use, and control of your money. That way you no longer have to depend on banks and credit cards when you need to go make your next major capital purchase, invest in your business, or take advantage of an opportunity that comes up. 

And here’s the issue: if you’re building your own cash that you can borrow against and utilize to pay off some other debt or to make purchases, now you are actually owning your debt. And looking at what Nelson Nash said, that’s what banks do. A bank for us. When we borrow money from a bank, it’s a liability to us. It’s an asset to the bank. If you’re the banker, you now own an asset. And sure, you have the debt. But now you can control the terms and conditions. You can control when and if those payments are made. You are in control. And that’s the point. 

Here’s the perfect example. Let’s say you have $5,000 in your bank account today and you also have a balance on your credit card of $5,000. And tomorrow you decide, “Hey, I need to get out of debt. I’m going to take this $5,000 and I’m going to apply it towards my credit card.” Today, you have a net worth of zero. And tomorrow, after you pay off that credit card, you have a net worth of zero. But what’s the difference? Today, you own and control that $5,000 in your bank account. As soon as you give it to the credit card company, you no longer have liquidity use or control over that money. And your net worth hasn’t changed at all. You’ve abdicated your responsibility as a steward of that $5,000. 

You see, when the money is in your control, you have the opportunity to invest it, earn money on it, and do basically whatever you want with it. But as soon as you hand it over to the credit card company, you’re giving them that control and the opportunity that comes with it. 

 

That’s why we recommend borrowing against your own money and using that to pay off the credit card. And now that you own that debt, you could redirect the payment. You were sending Visa, MasterCard, or Citibank back to your policy. Now you own the debt. It’s an asset to you and you’re earning interest on that money. 

We always say “Never Drain the Tank”. Always allow that money to continuously compound interest. And that’s what we do with specially designed whole life insurance policies designed for cash accumulation. We’re allowed to own our debt and repay ourselves, so we never stop that compounding. 

If you’d like to learn more about how to get started with a whole life insurance policy designed for cash accumulation, be sure to visit our website at tier1capital.com to schedule your free strategy session today. Or if you’re interested in learning more about how we use this process, check out our free web course. It’s about an hour and it goes into a deep dive of how we do this.

And remember, it’s not how much money you made. It’s how much money you keep that really matters.

Tips for Insuring Your Most Valuable Asset

Have you considered insuring your most valuable asset? And you may be wondering: what is your most valuable asset? It’s your ability to work and earn income! But, what would happen if you woke up tomorrow and were no longer able to work? What would happen to your family? What would happen to your lifestyle? If you haven’t considered this, stick around to the end of this blog because today we’re going to do a deep dive on how to insure your income. 

It’s often been said that insuring your greatest asset, your ability to earn income, is the equivalent of insuring the goose that lays the golden eggs. Many employers offer short-term disability insurance as part of their benefits package, but that could last anywhere from 90 days up to two years. So, what happens after that benefit period? If you’re still not able to work and earn income, then what? What happens to your lifestyle? What happens to your family? How do you support the things that you’ve become accustomed to when you’re not able to work any longer? 

There are other situations where your employer doesn’t offer those benefits or you’re self-employed and you don’t have that luxury. And those cases, it’s especially important to have set aside 3 to 6 months of income as a safety net or emergency fund in case you’re unable to work. 

Disability insurance is sort of like having a safety net as you’re ascending this ladder in life. The higher you climb up these stairs or this ladder, the higher you want that safety net. 

With a long-term disability policy, you’re transferring the risk of becoming unable to work to the insurance company. So, basically, you pay a premium every month, and if you become unable to work, the insurance company will continue your income. So, now, you have a steady stream all the way into retirement. 

Typically, an insurance company will insure 50 to 60% of your income, which is the equivalent of your net pay after taxes. Disability insurance is a cornerstone of any financial plan. Imagine what would happen if you were no longer able to work into retirement. How would that impact your retirement? How would that impact your family? How would that impact your ability to maintain your lifestyle? These are all questions that a properly designed disability insurance policy will answer for you. 

Here’s an example: 

A couple of days ago, we were working with a young attorney who makes about $150,000 per year. And he said, “Should I get disability insurance?” 

I said, “Well, it’s basically the choice of two jobs. Job A pays you $150,000. But if you get sick or injured and cannot work, you and your family get nothing coming in. Job B will pay you $147,000 per year. But if you get sick or injured and can no longer work, you’ll have $120,000 coming into your family tax-free. Which job would you choose?” 

He said, “Oh my God, that’s a no-brainer, Job B.”

If you’re looking to add a safety net to your financial plan by adding long-term disability insurance to your portfolio be sure to visit our website at tier1capital.com to get started today. We’d be happy to go over the specifics of your situation with you. 

And remember, it’s not how much money you make, it’s how much money you keep that really matters.

How to Use Whole Life Insurance to Achieve Financial Freedom

Are you rich on paper but feel financially stuck and frustrated? Take a look at your net worth statement. Identify which assets are stagnating assets, meaning that some other financial institution or some other entity is in control of that asset. 

It’s been said that money needs to flow. It’s a simple law of nature, just like water has to flow through us or we die. Blood has to flow through us, or we die. If we’re out in nature and we’re thirsty, we never drink stagnant water. We always drink running water. And it’s the same with our money. 

But what conventional wisdom teaches us to do with our money is to park it, leave it there as long as possible, and then get it back someday. We are trained to do things with our money that we would never do with the things that money buys. 

Here’s an example: 

  • You would never buy a loaf of bread, put it away, and say you’re going to eat it in 40 years. Yet we do that with our money. 
  • You would never buy a car and put it away and say, I’m going to drive it in 40 years. Yet we do that with our money.

And there are so many other decisions that we are trained to do with our money that we would never do with the things that money buys. 

So the question becomes: how do we achieve the returns we get by parking our money while still allowing our money to flow so that we could have complete liquidity use and control of that money to take advantage of opportunities or emergencies that come about? 

This is step three in our process. It’s a specially designed whole life insurance policy for cash accumulation that allows you complete liquidity use and control so you can take advantage of financial opportunities or business opportunities, or bail yourself out of a financial or medical emergency. This allows your money to flow and still receive or attain the returns that you would get by parking your money. You get the best of both worlds. You get a reasonable rate of return, plus you get liquidity use and control of your money so your money flows. 

If you’d like to get started with a specially designed whole life insurance policy for cash accumulation, so your money is no longer stagnant. Be sure to visit our website at tier1apital.com and feel free to schedule your free strategy session today. 

Remember, it’s not how much money you make, it’s how much money you keep that really matters.

5 Ways You’re Unknowingly Giving Up Control Of Your Money

Do you make a good income but still find yourself living paycheck to paycheck? If that sounds like you, stick around to the end of this blog. Today we’re going to show you why it’s not how much money you make, it’s how much money you keep that really matters. 

Many people will come to us already earning a good income. In fact, they’re earning more income than they thought was ever possible. But they still have that feeling that they’re living paycheck to paycheck. And, clearly, that’s not an income problem. If it was, they wouldn’t have any problems. The issue is their money and their cash flow are not working efficiently. 

If you don’t correct how you’re using your money, the problems will continue to compound as your income grows.

We’ve found that there are five major areas where people are giving up control of their money unknowingly and unnecessarily. Unknowingly, meaning they don’t realize they’re doing it, and unnecessarily meaning they could stop whenever they want to. 

The five areas are:

The first step is to take a look at your finances and find out where you’re giving up control of your money. 

The second step is to “simply” stop doing those things that are taking control away from you. “Simply” is in quotations because these are things that you’ve been doing all your life; things that conventional wisdom, your family, or your mentors may have suggested you do to get ahead financially. But what’s happening is you’re giving up control of your monthly cash flow to other institutions. And when you’re doing that, it’s impossible for you to move ahead financially. 

Step three is to save your money in a place that you own and control so that only you, your family, or your business can access that money. 

And step four is where the magic happens. It’s where you borrow from yourself and pay interest back to yourself or that account that you own and control. And when you do that, you are now in control of the borrowing process. Money never leaves your control, and you are what we refer to as cash fluent. 

Think of the impact it would have if you had complete liquidity use and control of the financial function in your life where you’re building cash flow for yourself, using it to achieve your financial goals, and rebuilding it so you could repeat the process. And an added bonus not stated in there is the fact that now you’ve liberated yourself from the banks and finance companies. 

Clearly, it’s not your income that’s holding you back. If that were the case, all of your problems would have been solved three raises ago. It’s how you’re using your money. If you’re finally ready to regain control of your money and start saving for your financial goals, be sure to visit our website at tier1capital.com. 

We have a free web course where we do a deep dive into the four steps. Or, if you’re ready to get started and get on a call, feel free to schedule your free strategy session to get on our calendar today. Also, if you know someone who needs this information in their life, be sure to share this blog with them!

And remember, it’s not how much money you make, it’s how much money you keep that really matters.

How To Live Financially Free

Have you met with a financial adviser who turned you away because you didn’t meet their account minimum? Well, today’s your lucky day, because today we’re going to take you through exactly how to go from having nothing or not enough to being abundant and living financially free.

So the first question you should ask yourself is: why don’t you meet their account minimum?

And it’s probably because you’re following conventional wisdom, but that’s the good news – you probably also have money that’s hiding in plain sight. Our process seeks to put you back in control of your money. We do a deep dive into your finances and find money that you’re giving up control of unknowingly and unnecessarily. 

Unknowingly means that you don’t know you’re doing it. You don’t wake up and say, “Hey, I’m going to make a bad financial decision today.” No one does. 

Unnecessarily means that you don’t have to continue down that path. Making some simple shifts within your finances could put you back in control of your money and leave you in a better financial position going forward.

We have been trained to find, on average, $24,000 per year of money that’s hiding in plain sight. That’s money that you can use to move forward financially. Our process looks at five major areas of wealth transfer where money is leaving your control each and every single month. Those areas include:

By looking at these five areas, we’re able to identify money that’s leaving your control. Then we can redirect that money back into an account that you own and control and have full liquidity use of that money in order to achieve your financial goals.

And you see, we don’t have an account minimum. We would never insult somebody by telling them that they’re not good enough. Everyone thinks they’re doing the best that they can with what they have, but what if there was a way to make your money more efficient. What if instead of just paying down debt or paying cash for purchases, you were actually accumulating wealth for you and your family? Wouldn’t you want to know about that? This is where financial advisors get stigmatized as only being there for the wealthy.

But if you’re serious about moving yourself forward financially, we are here to help. If you’d like to get started with our process, visit our website at tier1capital.com to schedule your free strategy session today.

And remember, it’s not how much money you make, it’s how much money you keep that really matters.

Do You Have Money Hiding In Plain Sight?

Today we’re going to share with you ideas and strategies that transcend finances. It will be information that can impact your life on a much bigger and deeper level than just financially. Implementing these strategies can give you back control of your money, your cash flow, and your life. No longer will you be dependent on and therefore obligated to the banks for credit and access to cash. No longer will your financial success be tied to the vagaries and whims of the Wall Street rollercoaster. So if you want to get back control over your life and experience the liberating feeling of independence and freedom that come with it, stick around to the end of this blog to find out.

Today we’re going to talk about the concept of money that is hiding in plain sight. And you may be wondering: “How could money be hiding in plain sight? Every day I wake up, I make the best financial decisions for myself. I pay off my debt as soon as possible. I have a 15-year mortgage and I’m paying extra on it. I’m paying off my credit cards as fast as I can. I’m maxing out my 401K’s. I’m paying cash for purchases when I can. I’m saving for my children’s college education.”

But what if we were to tell you that the things you’re doing could actually end up holding you back financially in the long run? When would you want to have that conversation? 

So, let’s start with a simple example of having $500 extra at the end of the month and making the decision to put $500 on your credit card. Why? Because debt is bad. And the first question you need to ask yourself is that by putting that extra $500 on the credit card, does that increase or decrease your net worth? The answer is neither. You see, before you put the money on the credit card, you owned and controlled $500 and you had the outstanding balance on the credit card. Now you have a lower outstanding balance by $500, but no cash. It hasn’t impacted your net worth by one penny. But the key is now who controls that $500? And the answer is, it’s not you. That’s just one example of where you could be giving up control of your money unknowingly and unnecessarily. 

We found that there are five major areas of wealth transfer: taxes, how you fund your retirement, your mortgage, how you’re saving for your children’s college education, and how you’re making major capital purchases like weddings, vacations, or buying a new car. And, you see, this money is actually hiding in plain sight. And what we have found is that the average family has about $24,000 year over year that is hiding in plain sight. Again, it’s money you think is moving you forward. It’s actually holding you back. And because of that, we’re able to identify that money and return it to you so that you can be in control of that money.

Let’s face it. No one wakes up in the morning and says, “Hey, how can I mess up my finances today?” We’re making decisions that we think are right for us because that’s what conventional wisdom told us, or that’s what our parents told us, or that’s what our grandparents told us. But we’re here to tell you that there may be a better way that leaves you with more control of your finances so that you’re less dependent on these institutions going forward. And you see, that’s the key to putting you back in control of your money. Once you start chasing returns or looking at interest rates, you’ve taken your eye off the ball. And that’s where we could find the money that’s hiding in plain sight.

Now, finding the money is only step one. And if you find the money and you just increase your lifestyle or you increase your spending, that’s not going to move you forward either. The second part of the equation is to start saving that money and to start saving it in a place where you own and control it so that you’re able to make better financial decisions going forward and be less dependent on these institutions in the long run.

And you see, we have found that a specially designed life insurance policy will give you access to your money when you need it, no questions asked. So that’s the first issue of control. The second issue is that by accessing that money and using the loan provision now, your money will continue to earn uninterrupted compounding interest. And now that’s the second level of control that returns back to you. And again, what could be more empowering or more liberating than setting up an account that only you could access and you can use for whatever you want, whenever you want. That, to us, is control.

You see, when you’re in control of your money, you’ll have less dependency on banks for access to credit, and you’ll have less exposure to the risks of the Wall Street rollercoaster. If you’d like to get started in finding the money, hiding in plain sight in your finances, be sure to visit our website at tier1capital.com to schedule your free strategy session today. And remember, it’s not how much money you make, it’s how much money you keep that really matters.

Money Management Tips: How to Reach Financial Freedom

Have you ever felt like you’re doing everything right? You’re paying off your debt as quickly as possible, you have a short mortgage term, you’re maxing out your retirement plans, you’re paying cash whenever possible, and you’re investing in the stock market as much as you can afford to, but you’re still not seeming to get ahead. You still can’t reach that feeling of financial freedom like you’ve finally made it? If that sounds like you, continue reading because we’re going to diagnose exactly why that may be the case and recommend some simple shifts you can make to reach financial freedom.

30 years ago, I was in my late twenties. I was doing everything the so-called financial experts were suggesting you do. I maxed out my retirement account. I was paying down my debt, I was paying cash whenever possible, and because I was doing all those things, I never had any access to money. I had to borrow money from my parents to pay my mortgage. Why? Because I was freely giving up control of my money to the financial experts, and to the financial institutions.

Whoever controls your cash flow controls your life.

That’s why we preach: it’s not what you buy, it’s how you pay for it that really matters. Our process has four easy steps: Step one is to identify where you’re giving up control of your money. Step two, the hardest step- you have to STOP doing it. Step three is saving some of that money, and Step Four is where the magic happens- Where you’re borrowing from your own pool of money and paying interest back to yourself, and when you’re doing that, your money never leaves your control.

You’ve essentially cut out the middleman and you’re able to earn continuous compound interest on your money. As you’re repaying yourself, you’re building a pool of cash, so you’re able to access that again in the future. When you’re doing all of these things, paying down your debt, taking short mortgages, maximizing your retirement, investing whenever you can, paying cash whenever you can- you’re literally giving control of your money to them. And who are they? Well, they’re the financial insiders. They’re the greedy 1%, if you want to call it that. They depend on our participation for them to make profits. They create the situation and they make the rules. They profit from our outcomes and so these institutions have rules and those rules are for them to make profits.

So what are the rules? Simple.

    1. They want to get our money.
    2. They would love to get our money on a systematic basis, every month.
    3. They want to keep our money as long as possible.
    4. When it’s time to give us back our money, they want to make sure that they pay it back to us over as long a period as possible.

So how do they get us to follow these rules? Well, they position it as if it’s in our best interest. But in whose best interest is it to hand over all of your money every month to them instead of paying yourself first? It doesn’t sound like it’s serving you, it sounds like it’s serving them, and I would agree. So when you play the game by their rules, you could win according to their rules, but in the end, you lose.

So if you’d like to learn more about how you could apply our process to your situation and how you could finally regain control of your cash flow and regain control of your life, please schedule your free strategy session today.

Mastering Your Money With The Infinite Banking Concept

Money is the master of our lives, or at least, that’s what it feels like when you’re looking into an abyss of debt, loans, and financial responsibilities. When it comes to getting and staying in control of our financial situations, it might seem overwhelming when you have no idea where to start or even what to look for in creating a better, more rewarding strategy of using, saving, and creating money.

In this blog, we’ll talk about how you’re using your money, how banks use it to make more (for themselves), and how you can replicate their model of money flow to make sure you’re generating wealth for as long as you live. We’ll talk about the infinite banking concept, how it works, and how you can apply it in your own, everyday transactions and money strategies.

Ready to get started? Let’s dive in.

What Does Becoming Financially Free Require?

It Takes Less Than You Might Think

When we think of what it means to be or start becoming financially free, we often imagine luxurious cars, lavish holidays, and an endless flow of cold, hard cash. However, financial freedom looks different depending on who you ask.

For some, it means having the security to enjoy their hobbies and passions without sacrificing their quality of life. For others, freedom simply means learning how to control your finances before they control you through impulsive spending and crushing debt.

The one common fact about financial freedom, no matter who you ask, is that it’s possible to unlock it – and the infinite banking concept is the key.

First Things First…

You Need to Understand It’s Not About What You Buy or Don’t Buy

When you think of saving, you might think of the things that you buy. Instead, you should be thinking of how you’re paying for the things that you buy. In most cases, you’re either paying or losing interest.

Take financing a business for example. When you finance a business, you’ll incur interest that’s paid to the financial institution or lender you’re working with. When you pay in cash, you’ll never see the money that you don’t earn. You’ll essentially keep the interest.

With that in mind, it’s important to understand that the secret to how to control your finances is to control your cash flow. You need to find the most effective, efficient way to earn compound interest on a regular, continuous basis, without halting the purchases that you want or need to make.

Now that you have a basic overview of what you need to know about interest and payments, let’s talk about how banks make money.

How Do Banks Make Money?

They Do It by Using Yours

Becoming financially free means thinking like a bank. No, not loaning out money and hoping you’ll get paid back. We mean keeping your money flowing every single day. To understand the infinite banking concept, you need to understand how a bank makes money in the first place.

The very first step to making money as a bank is starting your bank. This is done by applying for a charter and finding people who want to start depositing money. A new bank might charge higher interest than their competitors at first. Then, this new bank needs to find people who need money.

Starting The Flow and Keeping It Going Forever

Using Depositors and Borrowers in A Perfect Balance

Once they’ve identified a network of depositors and borrowers, the real work begins. They offer sky-high interest rates on savings accounts to tempt you and others like you to start saving your money with them. However, they won’t be losing out by offering you these “high” interest rates. Once they have your money, they’ll start lending it to qualified borrowers.

These borrowers will then be responsible for paying their money back at an interest rate much higher than what you’re getting, which means that Mr. Bank can pay you your interest and pocket the difference. Easy, right?

As you can see, when you’re a bank, “your” money never stays in one place for very long. It’s lent out and stays flowing so that it can grow forever.

How To Apply the Infinite Banking Concept in Your Own Life

Without Spending Years Learning How to Do It

It might seem strange to compare making money as a bank to becoming financially free as a parent, working professional, and/or recent graduate. While you won’t be able to lend out billions of dollars and reap the reward of high interest repayments, you can apply the principle of keeping your money flowing with the right life insurance, savings vehicles, and processes. By owning this banking process, you’ll be able to learn not only how to control your finances, but also how to use them to keep your wealth growing your entire life.

What Does Tier 1 Capital Do?

We Help People Just Like You

Tier 1 Capital provides our valued clients with the permanent life insurance they need to accumulate cash indefinitely. We connect you to a savings vehicle or pool of cash that you own and control.

We provide our clients with a range of financial strategies that cut down the risk and ramp up the accessibility of their money while keeping them in complete control. Our mission is to empower our clients with the strategies and insight they need to take conscious action regarding their finances and their overall financial future. We are committed to keeping you informed, educated, and up-to-date with the best financial practices and services in the industry.

We have worked with families and small business owners of all walks of life, and now, we want to work with you. Reach out to our team now here at Tier 1 Capital  and book a free strategy call today if you’d like to learn more. We’ll walk you through everything you need to know as part of a complimentary strategy session with one of our certified and professional team members.