Understanding the Infinite Banking Concept
One of the reasons so many people get excited about the ‘Infinite Banking Concept‘ is that they finally learn at least one fundamental lesson about money. Have you ever noticed that so many advisors have these financial ideas in their heads, but can’t quite put them into words?
This is what seems to happen when it comes to learning the infinte banking concept. The fundamental element of the banking concept is simply that ‘YOU FINANCE EVERYTHING YOU BUY’. You are either paying interest to a financial institution, or if you pay cash, you are giving up the interest those dollars could have earned you.
The Banking Concept
If you lay down a credit card today to purchase an item, then you know that you will be paying interest on that purchase. If, on the other hand, you lay down cash to purchase that same item, your head seems to suggest that you are not paying interest. This way of thinking simply isn’t true.
Lost Opportunity Costs
If your cash was sitting in a 5% interest bearing account and you took that money out to purchase an item, then the finance charge was 5% (because you lost the 5% you would have earned had you not taken the money out of the bank). Sure it’s less than the 20% on a credit card but nonetheless, it is still financed. This concept is called ‘Lost Opportunity Cost’, being the money you lose if you choose to pay cash for a purchase.
Understanding this concept is the foundation for anyone to own and run their own Family Banking Plan. Whenever you buy something we want you to say to yourself, “I want to finance this through ME!” In other words if I am to pay interest or lose it, then I want to make certain that I finance everything I can through my own banking system. This way you can recapture and keep the principle, plus the interest that would otherwise have gone to someone else.
Become Your Own Bank and Stop Losing Money Now
By beginning your Family Banking Plan you will learn the infinite banking concept that will allow you to start taking control of your money and financial life. You will learn how to win the game of financing for yourself so you transfer as little as possible to the financial institutions that compete for your hard-earned money on a daily basis.
Reducing your Lost Opportunity Costs and limiting financial transactions that send your money to other people or institutions is one of the first fundamental principles of wealth creation.
Identify your Lost Opportunity Costs and learn how The Family Banking Plan can help you stop losing money! Take our FREE Cash Recovery Analysis by clicking here and begin taking control of your money today.