Becoming Your Own Banker, Part 20: How to Live on Purpose
Are you unhappy with your job because you want more fulfillment and meaning out of life? Most people think retirement is the answer. But rather than delivering on its promises, retirement is a trap. Instead, you must learn to live on purpose.
Prepare to unearth the secrets of living a life of purpose and financial independence with insights from Nelson Nash’s Infinite Banking Concept detailed in his trailblazing book ‘Becoming Your Own Banker’. This episode promises a powerful discourse on how taxation, government programs, and exceptions are sculpting a potential financial crisis for Americans. Brace yourself as we expose the ramifications of the government’s soaring borrowing and spending, pointing towards a possible great reset, and how deferring taxes could be your road to financial doom.
Post World War II, the landscape of unions, benefits, and pensions drastically transformed, but did it serve or undermine the individual worker? Let’s journey together through this significant period, shedding light on how governmental control and the taxation system have eroded individual autonomy. Discover how liberating decision-making from the clutches of the government can propel societal growth and well-being.
Finally, let’s delve into the work of Edward Deming on the ‘constancy of purpose’ and the adoption of a new philosophy. We’ll stir your thought process by discussing the necessity of demolishing barriers, ousting fear, and nurturing a culture of innovation. We’ll also touch upon Nash’s 14 points of quality and his seven deadly sins. So gear up to seize control of your life, money, and future – the journey might be arduous, but the reward is an empowered life, filled with purpose and growth. In the end, the choice to shape your financial life is in your hands – will you emulate the successful few or follow the multitude? Listen in to find out how.
Join us to get a fresh perspective on living with purpose and succeeding in improving the quality of your finances.
Table of Contents
[02:08] “[Nelson] says when government creates a problem—onerous taxation—and then turns around and creates an exception to the problem they created—tax shelter retirement plans—aren’t you just a little bit suspicious that you’re being manipulated?”
This is the crux of the problem when the government asks you to relinquish control of your dollars to them. They make promises that it’ll be good for you, but it’s even better for them. One promise, for example, is that you get to defer taxes or take a tax credit. And while you get to do that now, that doesn’t exempt you from paying taxes later.
And the unfortunate truth is that not only are you paying taxes on the harvest (i.e. the larger sum), but taxes are also much likelier to increase over time than to decrease. In the end, you can’t guarantee future tax rates, but you can plan for them now. Wouldn’t you rather pay taxes now to be exempt later?
It’s important to stop and think WHY you’re being told to take certain actions and figure out who benefits most. This is especially true if you’re being asked to relinquish control of your dollars to someone else.
How Do Taxes Work?
When we talk about taxes, it’s important to note exactly what that means. United States income taxes are marginal, which means that everybody’s dollars are taxed the same from the bottom up. So the first $11,000 of every person’s income is taxed at the same percentage. Then everyone’s dollars from $11,001 to $44,705 are taxed at the same percentage. So when we say that someone is in a 24% tax bracket, that doesn’t mean all of their income is being taxed at 24%. Their income is just high enough to have a portion of their income taxed at that percentage.
So, someone earning $95,376 might be in a 24% tax bracket, but only a single dollar of their income would be taxed at 24%.
This means that in determining taxes, not only do the brackets matter, but the size of the brackets matter. Your deductions also matter. If you’re able to itemize your deductions, you can see your tax bill fluctuate, regardless of your highest marginal tax rate. It’s entirely possible to be in a lower tax bracket and have a higher tax bill simply because you’re unable to deduct as much in a given year.
All of this is important to understand because it can help you make better long-term decisions. For starters, if you feel that taxes would stay the same, would you still want to put your dollars where you can’t control them, only to pay taxes later? And if you think they will continue to change over the years, do you think the trend will be up or down?
Or would you rather take control now by paying taxes now and keeping your dollars in your control with whole life insurance? Then, you can access your dollars any time in a tax-free way over your entire lifetime.
Control Your Livelihood and Purpose
In addition to whole life insurance, which can help you to control your income, you have to control your livelihood. This means finding a purpose in your work so that you can create capital, enough so that you don’t have to retire and depend on the invisible hand of the government.
[31:09] “Nelson really drives home this idea that mankind needs to have a purpose in life.”
In his research, Nelson found that many people pass on soon after they retire because they lose their sense of purpose. Purpose and fulfillment through service is integral to our being. Without that, our mental and physical faculties can quickly decline and we lose that spark.
If you study people with long lives, so many of them pass on “in the thick of it.” They’re still doing what they love, they’re experiencing life, and they have a purpose. They die doing what they love but at much more advanced ages.
If you find a sense of purpose, you control your own life and destiny. Retirement means giving up control of your life, your money, and your possibilities. By choosing to keep working and living with a sense of purpose, you can experience a much fuller life both now and later because you give yourself freedom of time and income.
Leadership and Ownership
To find your purpose, recognize that leadership and ownership go hand in hand. If you can first lead yourself by thinking differently and questioning what you’re being told, you then assert ownership and responsibility for your thoughts.
Thinking for yourself and taking ownership of your thoughts and actions can lead you to your purpose and work that is fulfilling to you.
Learn from Others
In addition to thinking for yourself, living on purpose requires that you keep learning. If you think you’ve learned everything there is to know, you’re going to miss out on tremendous personal and professional growth. Instead, forge connections with people you trust, and be willing to learn from these people.
You can learn from others and still be an independent thinker. The two shouldn’t be contradictory at all. You must think for yourself to be a good student.
To live on purpose, you must take action. You can have theoretical knowledge, but until you apply it, you don’t have a complete understanding. For example, you can read about driving and understand it conceptually, but until you get behind the wheel, you don’t properly know how to drive.
To live your purpose, you have to try things, take action, and apply what you learn.
Live on Purpose
[44:15] “It’s empowering to make those decisions. Will it be easy? No. Is it hard to take control of your own money and not do what everybody else is? Yes, it’s hard. Because now it’s up to you, it’s your responsibility. But [with] that ‘hard,’ at least you’re in control.”
Life is hard no matter which path you choose. You have to pick your “hard.” But one path puts you in control, for better or worse. It’s up to you and what you want from your life.
Book A Strategy Call
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