Becoming Your Own Banker, Part 30: Infinite Banking Process Explained

Why does Infinite Banking work?

We’ll look at the flow of money through the economy, where it is pooling, who owns it, who controls it, and who gets access. This is the Infinite Banking Process explained; and this clarity will tell you everything you need to know about how money works.

Unlock the secrets to financial sovereignty as we journey through the empowering strategy of infinite banking, inspired by Nelson Nash’s celebrated philosophy. We unravel the often misunderstood world of controlling your own financial destiny. Imagine breaking free from traditional banking, navigating the complexities of money management with ease, and placing the power firmly in your own hands. Through our illuminating discussion, you’ll discover a straightforward approach to building your pool of wealth, gaining insights that promise to transform your relationship with money.

In today’s episode, we delve into the mechanics of how money circulates within personal and economic systems, drawing insightful parallels with natural cycles and Warren Buffett’s investment principles. You’ll learn about the inner workings of life insurance companies, unveiling how you can tap into their capital reservoirs to your advantage. By embracing the simplicity of taking control of the banking function, we champion the mantra of modeling the successful few. Don’t miss the opportunity to explore how infinite banking can reshape your future, offering you the keys to constructing a life and business that reflect your true aspirations.

Podcast: Play in new window | Download (Duration: 22:21 — 25.6MB)

Subscribe: Apple Podcasts | Spotify | Android | Pandora | RSS | More

Building Cash Value Through Insurance

You may have heard that Infinite Banking is “more caught than taught,” which is Nelson’s way of saying that the concept is more important to understand than the minute details. If you understand from a macro perspective how things work, you can do great things with IBC—the rest comes with time and study. 

For example, most people get hung up on the idea of rate of return when reviewing financial strategies and products. But if you place too much value on rates of return, you may lose out on other valuable benefits like liquidity, protection, tax advantages, and more. Or, if you’re too focused on getting a good rate of return, your average growth could be worse than a slow but steady rate of return. 

By understanding the principles of IBC—like building cash value with as much flexibility as possible—the rate of return and other concerns are minimized. We’re asking you to reframe how you think about your wealth.

Infinite Banking Process Explained: The Value of Cash Value

[03:12] “Really it’s about developing a pool of money that you can then access to take the finance charge out of your life, and when you come upon opportunities in your life to then use that for investments. It’s really that simple.”

Cash has tremendous value in our lives, and we all have a need for financing while we’re on this earth. The place where you store your cash can have a major impact on how you use it when you use it, and why you use it. By storing your cash in whole life insurance, you guarantee that you remain in control of those functions, so you can use your money when you want to, and you can finance what you want to. That’s the value of cash value. 

Money and the Water Cycle

The reality of money is that it flows. It flows from one reservoir to another, like water, so we’re going to explain Infinite Banking through the analogy of water. Like the water cycle, money in your “pool” can evaporate, it can condense, and fill your pool more, or it can flow to/from other sources. The important part is that you have the pool to work with!

Money enters your insurance company’s pool by paying premiums and repaying loans (which translates to increasing your own pool of money). It can also increase by earning out dividends. Money coming out of your pool will be withdrawals, while loans may temporarily reduce what part of your pool you can access. The insurance company as a whole will have its pool reduced by paying death claims, paying dividends, and operating expenses. 

The difference between having a pool of money at the bank and a pool of money at the life insurance company is that there’s a gatekeeper at the bank who won’t let you use your money in certain ways, or provide access to additional capital. You want your money where you can control it.

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.