Don’t Do Business with Banks – Infinite Banking Concept (IBC) Rule #4

Don’t do business with banks – Infinite
Banking rule # 4 from the IBC rules by Nelson Nash. I’m Barry
Page, and in this short video I’ll explain what Nelson meant when he said don’t do
business with banks. In his best-selling book, Becoming Your Own Banker, Nelson
discusses infinite banking. Because of the way we’ve been trained we
sometimes forget these very important rules. In my previous videos we’ve
discussed the banking rules and let me recap them here. The first rule, think long
range. Rule number two, don’t be afraid to capitalize. Rule number three don’t steal
the peas. And number four don’t do business with banks. Now of course when you hear, don’t do business with banks, that’s not to say we’re not gonna
hold a checking account for convenience at the local bank. What we’re talking
about here is financing, and where you store your capital. This concept is about
recovering the interest and fees that we would normally transfer away by
financing our major purchases, things like homes and cars, and using credit
cards. Infinite banking puts you in control of the banking function. It’s
simply a way to take control of your money and the financing aspect in your
life.Here’s the problem, the average American family transfers away over 30%
of their after-tax income to interest in fees. Now compare that to the savings
rate of most Americans which is less than 10% and you can see the discrepancy, it’s 3 to 1. The problem is all of these purchases, these things that
we finance, are financed through other banking institutions. Therefore we give
up interest to these institutions. Now some people may say “I pay cash, so
therefore I avoid paying interest.” Well when you pay cash you give up the
ability for your money to earn interest. And that money, once it’s gone, is gone
forever. MONEY HAS TO RESIDE SOMEWHERE Here are two very important principles
to remember… MONEY HAS TO RESIDE SOMEWHERE. and YOU FINANCE EVERYTHING THAT YOU BUY. Meaning, you pay interest to someone else for the use of their money, or you give up the ability to earn interest on your money. So what
better way to practice these very important principles by than by having
your own private family bank, and guarantee that what you want to happen
will happen; while you’re in complete control of your money. In my other videos
I go into detail about how all of this works so but for now let’s just focus on
the IBC rules and why you may not want to do business with traditional banks.
When we finance using other banks we actually perpetuate the problem. You see
banks operate using fractional reserve lending, and that means the
capital that they loan.. that you borrow doesn’t actually exist.
This causes inflation and the result of that is, our dollars are worth less. Let’s
take a look at the cash in your purse or wallet. Notice that these bills now say
“Federal Reserve Note” it’s paper money. Yes, like Monopoly money…
Fiat, it’s otherwise fake money. But that doesn’t stop the banks, they operate by
different rules than we do. But banks like us to follow their rules. So, let’s
take a look at the rules that banks want us to practice. Number 1, banks want us
to give them our money. Number 2, they want us to give them our money on a
regular basis. Think direct deposit. Number 3, they want to hold on to our
money for as long as possible. Number 4, they want to give us back
as little as possible. All the while the bank’s gamble with our money that they
keep on deposit. Even after the Bank debacle in 2008, banks are again
experimenting with derivatives and other elaborate means to generate profits,
while taxpayers are on the hook. The FDIC, which is supposed to protect
depositors with insurance, is in reality funded by the people. The FDIC loves to
tout “no depositor has lost a single cent of insured funds as a result of a
failure” yet the FDIC is backed by The Full Faith and Credit of the United
States government, and you know where the government gets their money. Let’s get
back to the problem, doing business with banks. The volume of interest that we pay
is the problem. Over our lifetimes we can transfer away an enormous amount of our personal wealth to interest and fees. It’s not about the interest rates, even
in a low interest rate environment like we’re in today, the volume of interest we
pay is the issue. Think about how often people get new cars. And most families
have multiple cars and car loans. The majority of cars that are traded in
still have an outstanding loan, so think about that. Consider the fact too, that
most Americans will either move or refinance their homes every five to six
years. What are the closing costs when we do that? How much interest do we pay in
those early few years the first 5-6 years, compared to the principle that
we pay. So what is the solution? We have to start thinking like BANKERS!
Practicing Infinite Banking of course, is not creating a physical
Bank. It’s just a way to create a private financial system for financing our major
purchases, that we would otherwise do with the banks and the financial
institutions. With IBC one can utilize that inherent features built into a
Permanent, Dividend-Paying Life Insurance Contract to finance and create their own
personal banking system. By practicing responsible money behaviors in our
family we can avoid doing business with traditional banks. Those who start family
banks can also teach this to others, and teach them stewardship. Parents and
grandparents can eliminate the need for hiring expensive attorneys to do estate
planning, and create elaborate trusts. And they can teach their children and
grandchildren financial stewardship. Business owners
don’t have to worry about spoiling their children or leaving them well off from
their wealth, without teaching them responsibility. Banking skills are among
the most important things that we can teach our children, as well as give them
the opportunity to learn about business and how business works.
Instead of just leaving money to our children, our family can make loans to them and
benefit by repaying the loans, or having them repay the loans. And this teaches
them independence. And of course there are many ways that parents can use
banking policies themselves you know. Here’s an example. I have a client who
financed a swimming pool for their family. Think about that the enjoyment
that you can get, and have your family and kids by using something like a
swimming pool at home. I have another client who used their policy to finance
a car for their daughter, and she makes the payments to repay!
So she’s learning about this without having to pay high interest rates on a
bank loan. Recently I pulled out an old statement
where I had paid 23% for my first car loan. And think about paying for
things like education, which can help avoid dipping into retirement plans or
our savings. We can fund college expenses this way. Then there’s business, perhaps
you have a business, or perhaps you have a talented child that wants to go into
business. Imagine having them come up with their
own business plan, and use the family bank to fund their business dreams. Of
course there are many uses and that’s why it’s called INFINITE BANKING. And
when you analyze the numbers, the profits can also be infinite. As with anything there are potential downsides to creating a family bank, but it really
doesn’t have to be complicated. The primary thing here is CONTROL. You
can be in complete control of your money as the policy-owner. You as the policy
owner, control the banking function, and therefore you can eliminate banks and
bank qualifying, and bank rules. So, that’s it for this video IBC Rule #4,
don’t do business with banks. I hope you’ve enjoyed this video, and I’d
appreciate a thumbs up if you did. Please SUBSCRIBE to my youtube channel to learn more, And click the little bell to be notified of new videos. I’ll be posting new content weekly,
and I’ll look forward to seeing you in the next video. Also, if you want to learn how you can practice Infinite Banking in Your LIFE, head on over to: and schedule your complimentary consultation. I’ll talk to you real soon.

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