What if everything you ever needed to generate wealth was right in front of you, but you just never knew it? The concept of Infinite Banking is a just that, it’s understanding the process of wealth accumulation, and how to generate massive amounts of wealth by taking no risk. Infinite Banking teaches that in order to become wealthy one must understand how money flows, and how to redirect it back to oneself. By implementing the concept of becoming your own banker you will learn to recapture the cost of your purchases, plus the interest. Here is a quick example of the basis of it. When coupling this with additional parts of the strategy, the benefits grow exponentially.
Purchasing Cars
You have 3 options when purchasing your next vehicle. Decrease your net worth by $15,000; $21,500; or increase it by $21,500. The choice is yours.
Breakdown:
Paying Cash-
If you pay cash for your vehicle, it looks like this:
Purchase
(30,000)
Car Value
15,000
Adjustment
(15,000)
Adjustment to net worth: -$15,000
Financing:
By financing the vehicle through a banking institution it looks like this:
Loan
30000
Interest Rate
8%
Years
5
Payment
$608.29
Total Pmts
($36,497.51)
Car Value
15000
Adjustment
($21,497.51)
Adjustment to Net Worth: -$21,500
Becoming Your Own Banker
Savings
30000
Loan
(30,000)
Interest Rate
8%
Years
5
Payment
$608.29
Total
$36,497.51
Car Value
15000
Increase
$51,497.51
Increase of $51,500
Minus the initial savings
Adjustment to net worth: 21,500
Now, some may say. Well what if I was to take the 30,000 that I used to finance the vehicle, and invested it while still financing?
Just to break even, you would have to get an 11.5 percent return on that money…AFTER TAXES, and that’s just to break even, meaning no loss. To equal the infinite banking solution you would have get a 19.4 percent return on your investment, after taxes, and then the outcome would be the same. Oh, and one more thing, you would have to do it with no risk.
Becoming your own banker, or the infinite banking concept is the most powerful concept that can be use to increase wealth. This, coupled with the vehicles we use to store our money, creates more wealth than any other possible solutions. The concept teaches how to use your money most effectively, and create wealth all on a tax advantages basis. Using it right, you will also discover that your money will generate additional returns by storing it in the correct places, even while you are using it for your own personal financing. The concept is infinite banking, and the solutions are truly infinite.
Please contact us for more info about infinite banking at jake@becomingyourownbank.com
Jake Thompson –
About the Author:
Jake Thompson
jake@becomingyourownbank.com