We're gonna go back and going to lesson three, basically, what is called the Infinite Banking concept, who discovered it, and who introduced it to us, and discuss the conversation of why becoming your own bank should be the cornerstone of your financial plan. 

So as we said earlier, the majority of people, they're used to simply operating on a certain way of thinking, and that is they make money, they put it into their checking account. And then it goes out to all these different places, like your credit cards, their student loans, or car loans or mortgages. And the money's very soon gone. 

What we are suggesting is that basically, you learn to put part of your money into what we call your own bank. And from there, once you open this account, in, we'll explain to you a little bit, shortly how to do that. That account is going to have associated with essentially what we consider a line of credit. 

This line of credit means that you're able to borrow from the same institution, some portion of your money, typically somewhere between 80 to as much as 90% of the money that you put in, what you're going to do with this money is that you're going to then use it to help eliminate these debts, as soon as possible. As you do that, what's going to happen and you're going to start to see a few benefits. 

First of all, once the more money that you deposit into your own bank account, your family protection is going to go up, that means that if something bad were to happen to you, like if you were to pass away your money, your family would receive a lot more money than what you deposited here, through what's called a death benefit. Also, the more money you put in here, the bigger the quantity of money that you'll be able to borrow back out to basically eliminate all of these debts, one at a time, first, your credit cards, then your car loans, and your student loans. And lastly, your home mortgage. 

So it becomes a system where the more money you make, the more you pay yourself first, the greater the family protection, the greater the amount of money in your own banking system. And the less that you're going to owe to the banks, the commercial banks. And by so doing at some point, you're going to eliminate the need for having bank loans. And at that point, what you're going to do is the money that you were paying yourself, for those expenses is no longer going to go to the banks, it's not going to go back in to pay down the line of credit.

 So that essentially the money is back in your system for when you ever need it again. So the whole point is to replace the commercial bank, with this strategy that we call becoming your own bank. There's a guy there's a guy named Nelson Nash I apologize this is in Spanish. But anyway, the bank, the book is called How to Become your own banker by Nelson Nash. He's the one who basically created this concept called the Infinite Banking concept, which essentially says, your need for finance is greater than your need for protection. And he says that the more money that you put into one of these types of plans, the more you're going to be able to protect your family. 

So how does this concept the Infinite Banking concept work? Well, essentially, it applies all the principles that we have been teaching you in the financial freedom seminar. It teaches you discipline, consistency, by learning how to pay yourself first. 

Essentially, if you deposit the consistency in the habit of paying a certain portion of your money, maybe 10% into this time, every single month, what's going to happen is that essentially part of that money is going to be available for you to borrow it back out when you need it. It could be as soon as even the first or second month after you start this plan depending on how you structure it. 

But the idea is very simple. The rate of cost of the money that you borrow is typically very low could be as low as 5%. If you have a debt that's 10% or 20%, or even higher, It makes sense to borrow from yourself at 5% to pay off a higher interest rate. And it also makes sense because the sooner that you can get rid of that commercial loan, the sooner that you're going to start sending stop sending money to somebody else's bank. And then once you do that, the idea again, is you have to repay the money back to yourself back to your own policy. 

The best way to do this is to start what's called a permanent life insurance policy. The best type of permanent life insurance policy that works for this is what's called a whole life participating, dividend paying life insurance. And all it does is that it simply has some benefits that other types of life insurance don't have, for example, your cost to start this insurance, once you're approved, stays the same throughout the rest of your life, the amount of benefit that you have never runs out. In fact, it grows over time. 

And lastly, it's got other living benefits that we're going to discuss here in a minute. But the basic concept that you should understand right now is that by becoming your own bank, and when we see bank, we put it under quotes, because it doesn't really mean a physical bank, it's a concept. You're using, essentially a life insurance policy, which acts like a bank, and we're going to show you why we say that in a minute. 

But essentially, the goal here is to provide finance for your daily purchases, just to cut off the dependency on other commercial banks, for the things that you mean. And with the money that you're putting in, you're eventually going to have enough to lend to your children to go to college, and to basically have a safe and predictable retirement income. When that time comes. And if something were to happen to you, either prematurely, or at the end of your life, you'll be able to leave a legacy that your family can enjoy. 

So essentially, people have a greater ability to take care of their family. And by starting one of these plans, than by not having one at all, or by simply having a common life insurance plan like most people have, which is typically a term life insurance, which ends after 10 or 20, or maybe 30 years. So why would you become your own bank? Well, how about if I switch this to some other concepts that might make it more easier for you?

If you are spending so much money on banks, making them rich? Wouldn't it make sense for you to be the bank and maybe keep all of that interest for yourself? 

The basic idea that we want to plant in your mind is that you can save money, at the same time that you can borrow that money and lend it back to yourself. And then so that newing the money doesn't have to stay in this plan. But what you're doing is you're creating a new cash flow, a new mindset, which is going to benefit you in the end. 

So basically, what we're trying to encourage you to do is to stop becoming dependent on commercial banks, stop making those banks rich, start making yourself prosperous and rich with the money that you're using. It's all about changing your mindset. Everything that we do here is changing the way that you think and changing the patterns that you used to doing. 

So whom becomes rich every time you buy something. For example. Let's go over here to the board and let's think about a home, and let's look at this equation. We're going to put yourself here right and we're going to essentially think about what we discussed yesterday, this is your income and these are your expenses and this is your net income we also have your personal balance sheet. 

Here we have your assets and here we have your liabilities now over here, we're going to put your bank they too They have an income statement where they make their own income. And they have their own expenses. And they also have their own bottom line, there are many. They also have their own balance sheet. So they've got their assets. They've got their liabilities.

Okay, so when a bank tells you that your home is your greatest investment, or an asset, what are they talking about? Well, let's think about it. When you buy a home, right? What is it that you typically have to get? You have to get a mortgage to you, your home is here. Right? But you're going to get a mortgage, which goes here. 

Now, for you, your mortgages, your liability, but what about for the bank? For the bank, the mortgage is their asset. Think about it this way. When you buy a home, and you get a mortgage, Where does this money come from? This money comes from the bank, right? When you make your salary, that's your income. What is it that you do? You say, Okay, I owe a mortgage. Therefore, I have to make the mortgage payment, right? So you have to pay interest plus some principal. 

So where does this money come out of comes out of your pocket and goes into their pocket. So they're making interest? Lots of it as their income. So for you this liability, this mortgage is causing you to have an expense month after month. For them. It's their, these asset is essentially causing them to have this interest income. Right? 

So when they told you that your home is the greatest asset, or greatest investment, they were not lying, they just simply didn't tell you whose asset they would sell their asset. It's their income. Now, think about your checking account. your checking account, we're going to put it here. How much are they paying on the checking account? Or the savings account? Maybe 0.01%? interest? So that's going into your pocket? Right? Bank? Interest? How much are they paying you? 8.00%. So for them, your checking account? Is their liability because it's not their money. They owe you this money. And for them it represents an expense.

How much are they charging you an interest in a mortgage? Who knows? Could be maybe $2,000. So maybe they're making $2,000 of interest. And in the meantime, they're paying you a penny on the money that they're holding for you. Right? So what is their net income doing every month? It's going up? What is yours doing? It's going down. Right? So that's why we have to work to pay this down. Until eventually it's gone. Why? So we can basically cut off this flow of money to the banks. 

All right. So now let me ask you a different question. If you replace your company, your bank, the same as maybe replacing the need for having your own your own food source. If you have to Become your own farmer. Let's put it that way. What is it that you would need to do? In the initial stages, you'd have to make an investment, you'd have to buy a piece of land, you'd have to buy some seeds, you'd have to spend a little bit of time to water them and make sure that they're growing before they start showing some results. 

But if he knew that there's going to be no other food source, is it worth paying the price? I would say yes. And if you could see the benefits, you would do it? Well, it's similar to the same thing here. Starting to become your own bank, in the first initial months may not show much of a result. But if you think about the long haul benefits of cutting off the banks, as we said, We think you'll come to agree and realize that it's really worth it, to be able to cut them off, and to replace them as soon as possible. 

So what we mean is, we need a vehicle, something that serves as a bank, quote, unquote. And what does the bank do? A bank allows you to save money, it pays you interest and a bank allows you to have a line of credit to borrow money at low interest. Right, that's in the ideal. The current banks do the opposite. They pay you nothing, and they charge a lot of money. What we need is something that pays you money and charges you relatively little. So that's the goal of what we're trying to do.