Cost of Acquisition

Becoming Your Own Banker, Part 21: Cost of Acquisition

Financing costs are much more than just interest rates. First, there is the time required to obtain the financing, and then, often numerous steps to qualify and negotiate. This financing is very expensive when you account for the number of executives whose time is required for the endeavor.

Infinite Banking overcomes this cost of acquisition, allowing you to obtain financing quickly and make timely decisions.

In this episode, you’ll recognize that time is more expensive than money as we dissect the true cost of acquisition in both personal and corporate finances. We’ll help you understand that every minute and mental whack we spend on acquiring capital has a significant cost, which often goes unnoticed. Together, we’ll draw wisdom from Nelson Nash’s “Becoming Your Own Banker,” reminding us of the importance of seeking reliable information and being confident in understanding financial concepts. 

In a world that’s always changing, waiting too long can cost you. That’s why we’re bringing you the Infinite Banking Concept, freeing you from the shackles of loan qualification and liberating your mind to focus on life’s bigger decisions. We’ll show you how to align your actions with your values and run your life like a small business, emphasizing the fundamental role of finance and whole life insurance policies.

Tune in today as we continue our journey through Nelson Nash‘s book, Becoming Your Own Banker, to reveal yet another often invisible, yet powerful advantage of Infinite Banking.

Cost of Capital vs. Cost of Acquisition

We often talk about the cost of capital in discussions of Infinite Banking. After all, there’s an interest cost to all of your financial decisions, simply because if you’re not paying interest, you’re passing up the ability to earn interest. The cost of acquisition is just a little bit different, yet it’s just as important in discussions of wealth-building. 

Simply put, the cost of acquisition is the cost of your time, expertise, and skills. What is it costing you in non-tangible assets to acquire/do something? If you’re jeopardizing your non-material assets in pursuit of savings or a deal, is it really worth that cost? This is an especially prudent question when you consider how much time you’re going to spend doing something, versus how else that time could be spent. 

You can also apply this idea to spending. Say you’re committed to finding the cheapest gas to fill your car with. In doing so, you’re successful, but you spend 30 minutes or more driving around to find it, and deplete your tank further than if you had just stopped at one of the first places you saw. This takes time and mental energy, and what do you really save? There is a cost of time and energy here that doesn’t necessarily make the savings worth it. 

When it comes to wealth, you have to think about the big picture. Time is money, and you just consider this in your financial decisions, too. 

Financing Takes Time

Financing takes time, but time is money. That’s the lesson here.

Consider you’re seeking to finance a major purchase, like a car. You have an Infinite Banking policy, but you hear that the bank can do half a point better. So, you decide to speak with a lender and jump through their hoops. This can take days and time and effort, which keeps you away from your regular routine. You’ve got to prove that you can repay the loan, supply paperwork, and more. In the end, your payment isn’t much different than if you had simply financed through your whole life insurance policy, with no hoops to jump through, and maybe you could have put that additional time towards a more lucrative business decision. 

In some cases, maybe the bank financing would still be worth the time. The loan may be several points better, and you feel that this will save you significantly on your monthly payments in the long run. The beauty of Infinite Banking is that you have options. You can choose to finance the purchase yourself, or through a bank. And if you choose to finance yourself, you can save time. 

So even though, from a purely economic standpoint, you’re better off paying a lower interest rate, there is still a cost to spending your time in pursuit of that loan. It’s up to you to determine whether that cost serves the bigger picture or not. 

[15:15] “The advantage of having cash value accessible and usable is that you absolutely qualify to get a loan against your cash value just because you are a policyholder, and that is a right of being a policyholder. And because you have that quick guarantee, your time is freed up to do so many other things.”

What Can You Do with Your Time? 

Time is an incredibly valuable resource, as entrepreneurs know. While entrepreneurship is in many ways about breaking free from the “trading time for money” model of employment, that doesn’t mean time ceases to matter. Instead, time becomes even more valuable, because you can use it to increase your dollars exponentially, rather than for an hourly rate. So imagine what you could do with extra time in your business if you didn’t have to be as concerned with small, time-consuming details. 

You also want to be sure that your decisions align with your values. Do you value time with family or your relationships? What if the time you saved could give you more time to spend with those you love? The possibility of whole life insurance allows you some flexibility to make choices that are better aligned with your values. 

[43:47] “[With whole life insurance] you have the opportunity to not have to go through all of that cost of acquisition. You can make quick decisions when it makes sense for you to make the decision, not based on what you’re getting paid… not based on interest rates that are high or interest rates that are low, and not even based on whether we’re in a boom cycle or a bust cycle.”

The only way that you can start having capital to make these decisions is by taking over the banking function, and you do that with participating whole life insurance from a mutual company.

Book A Strategy Call

Do you want to coordinate your finances so that everything works together to improve your life today, accelerate time and money freedom, and leave the greatest legacy? We can help!  Book an Introductory Call with our team today https://themoneyadvantage.com/calendar/, and find out how Privatized Banking, alternative investments, or cash flow strategies can help you accomplish your goals better and faster. That being said, if you want to find out more about how Privatized Banking gives you the most safety, liquidity, and growth… plus boosts your investment returns, and guarantees a legacy, go to https://privatizedbankingsecrets.com/freeguide to learn more.

Rachel Marshall

Rachel Marshall is a devoted wife and nurturing mother to three wonderful children. Rachel is a speaker, coach, and the author of Seven Generations Legacy™, passionate about helping enterprising families unlock their true potential and live into the multi-generational legacy they are destined for. After a near-death experience, she developed a deep understanding of the significance of recognizing and embracing one's unique legacy As Co-Founder and Chief Financial Educator of The Money Advantage, Rachel Marshall is renowned for her ability to make money simple, fun, and doable. She empowers her clients to build sustainable multi-generational wealth and create a legacy that extends far beyond mere financial success. Rachel's expertise lies in helping wealth creators remove the fear of money ruining their children, give instructions for stewarding family money, teach financial stewardship and create perpetual wealth through family banking, and save time coordinating family finances. Rachel co-hosts The Money Advantage podcast, a highly popular show that delves into business and personal finance, including how to effectively manage finances, protect wealth, and generate sustainable cash flow. Rachel's engaging teaching style and practical advice have made her a trusted source of financial wisdom for her listeners.
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