Turn Financing Costs into a Financial Tailwind

Turn financing costs into a financial tailwind by changing the way you think about money. Flying is an amazing experience. But have you ever noticed that when you fly west, your flight takes longer than when you fly east? That’s because of the jet stream—a strong, high-altitude wind that either pushes you forward or slows you down. The difference can be significant, sometimes cutting travel time by 40 minutes or more.

This same principle applies to your financial life. Most people unknowingly operate with a financial headwind, paying interest and financing charges that slow them down. But what if you could turn financing costs into a financial tailwind, propelling your financial progress forward? That’s exactly what Nelson Nash discusses in Becoming Your Own Banker, and today, I want to walk you through how to harness this power for yourself.

Podcast: Play in new window | Download (Duration: 56:35 — 64.8MB)

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

What You’ll Gain from This

By the end of this article, you’ll understand:

• Why financing costs are a major drag on your financial growth.
• How to rethink your approach to banking.
• How to use life insurance to create a financial tailwind.
• How to apply these principles step-by-step.

The Financial Headwind: Where Are You Losing Money?

Most people don’t realize just how much of their income is lost to financing charges. Nelson Nash estimated that, on average, 34.5% of a person’s income goes toward interest payments on mortgages, car loans, credit cards, and other debts. That’s a third of your income going out the back door, working against you instead of for you.

Think about it this way: if you’re saving 10% of your income but losing 34.5% to interest payments, you’re moving backward financially. It’s like flying against a 345-mph headwind with an engine that only pushes you forward at 100 mph. You’ll never reach your destination efficiently.

Turn Financing Costs into a Financial Tailwind with Infinite Banking

Infinite Banking flips this model upside down. Instead of paying third-party financial institutions, you redirect those financing costs back into your own system. Here’s how it works:

1. Capitalization: Think Long Range
   • Infinite Banking isn’t a short-term strategy; it’s about building financial control for the rest of your life.
   • Just like a plane needs enough fuel to take off and reach cruising altitude, you need to capitalize your banking system with properly structured whole life insurance policies.
2. Eliminate the Headwind: Recapturing Interest
   • Every dollar you pay in interest is a dollar you no longer control. By financing through your own policy, you keep the money in your system.
   • Your money continues compounding, even while you use it.
3. Build Momentum: The Power of a Tailwind
   • As your policy grows, your access to capital increases.
   • Instead of constantly borrowing from banks and paying them interest, you borrow from yourself, recapture the interest, and reinvest it.
   • This creates a snowball effect where your wealth accelerates, just like a plane gaining efficiency as it reaches altitude.

Policy Design: Building the Right Plane

Not all policies are created equal. If you want your financial airplane to perform at the highest level, you need the right design. Here are the key components:

1. Premium Structure
   • Base Premium: The foundation of your policy, providing long-term sustainability.
   • Paid-Up Additions (PUAs): These turbocharge your cash value growth and liquidity.
   • Convertible Term Riders: These allow for future expansion without additional underwriting.
2. Long-Term Commitment
   • Short-term thinking leads to inefficient policies.
   • The goal is to fund policies for as long as possible to maximize compounding.
3. Multiple Policies Over Time
   • Just as airlines don’t operate with a single aircraft, you may need multiple policies to reach your financial altitude.
   • A system of policies ensures flexibility and long-term stability.

The Key Takeaway: IBC Allows You to Turn Financing Costs into a Financial Tailwind

By implementing Infinite Banking, you take back control of your financing, eliminate unnecessary interest payments, and build a system that works for you instead of against you. Imagine the power of an extra 34.5% of your income working in your favor instead of flowing to banks. That’s the difference between financial struggle and financial independence.

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.

External Resources:

• Becoming Your Own Banker by Nelson Nash