So, we started discussing the concept of becoming your own bank. And the goal of becoming your own bank is essentially to take control of your money, take it away from the banks, and become your own bank in the process. As you do so, you're going to provide protection for your loved ones, you're going to be able to pay your children's education, you're going to be able to finance the major purchases in your life, such as cars, and maybe even your home.  And at the end of your life on here on Earth, you're going to be able to enjoy a predictable income, and the more stable retirement for yourself. 

So how do we achieve financial security? As we talked about in the financial freedom seminars, you first have to learn how to pay yourself first. So let me ask you a question. What is money for? If we think about the purposes of money, there's a few purposes that are short term. Some other purposes that are long term. For example, in terms of short term, we all need to live, right, we all need to eat. We all need to spend money on food on clothing, on gasoline to so we can get to work. What else do we need money for? We need money in the short term to pay our debts every month. For example, if we steal owe a car or your home, what else do we need money for? For entertainment for enjoyment? Maybe we'd like to go to the movies on the weekend. 

Maybe we like to have a little bit of fun. Once a year, maybe we go on vacation, right? What else do we need money for? We need money for protection in case something bad happens? For example, we need to have health insurance, we need to have car insurance. Those are some of the things that we need money for in the short term. What about the long term? So over the long term, we have some large purchases that we need to take care of, for example, our car or home, right? We also need to save for what for our children's education when it comes down the road? 

What else do we need money for? Maybe we want to start a business. So we need to have capital that we can invest and we can grow our business in the future. And lastly, we need to think about the time when we grow old, and how are we going to survive? How are we going to make a living when we aren't working anymore. 

So we need to provide some capital for our retirements. In our financial freedom class, we said that the difference between those people who are poor is that basically they make $100. And they spend $101, essentially, they end up borrowing, the people who also never get ahead, or the people who make $100, they spend $100, and maybe they save nothing. And the way you get rich is that if you make $100, you have to learn how to save first. And then you can spend the difference, right. 

And the real thing that you have to do is not wait until you spend to save, but do it the other way around. You first earn the money, you pay yourself first, you save that money first. And then you spend what you've allocated as part of your plan. 

We talked about the book called The Richest Man in Babylon where we showed that essentially you have to pay yourself at least 10%. Right. And the way you do that is either your income has to go up, your expenses have to come down. But whatever you do have to always earn at least 10% to pay for yourself. Now what do we do with that money, we have to either invested in assets or use it to eliminate liabilities, right, but we have to pay ourselves first, consistently. 

When you pay yourself first, essentially, you're starting what we call the tree of wealth, the tree of wealth is simply that amount of money that is going to grow over time and it's going to compound so that by the time you are old, you have a reliable source of capital to live from. You do this by paying yourself first 10% or more every month. You have to make it a priority in your life, so that you're not wasting all the money in current expenses. 

You have to do it consistently month after month, year after year, decade after decade. And you have to basically make a decision to make financial freedom a priority in your life. That's why we call it dare to prosper. Dare to prosper, because not everybody's willing to do it. Very few in fact, are willing to make this a priority. The most people only think about the President are spending all their money today that the people were wise, they put money in a way for the future. 

Now, as we talked about yesterday, the way most people are trained to spend their money is as soon as they get paid, what's the first thing they do? They go deposit their money in a bank, and from the bank, they go spend it on credit cards, car loans, student loans, mortgages, maybe their daily expenses. So in essence, the money basically, is gone. As soon as they get it. What we suggest to people is that you have two accounts, what you do with the two accounts, is yes, you need one to live, you need one for expenses, that's why we put it here in red. 

But you need what we call the blue account, the blue account is essentially the savings account. Essentially, what that means is when you get paid, you divert a portion of your money into the savings account. And you do this as a way to pay yourself. 

First, I'm going to tell you in a minute what you're going to do with this money, but you have to put in here, at least 10% before it ever hits your normal bank.   Now, a lot of people try to save, and they try to get rid of debt at the same time. But they do it by spreading their money all over the place. What do I mean by that? When it comes time to paying debts, they pay their credit card, they pay their home equity line of credit, they pay the line of credit, they pay their student loans, they pay their car loans, they pay their mortgage, they pay their temporary insurance, right? What else do they do with their money? Well, they try to put some money away so that they save for their kids college education, they try to save into mutual funds, they try to put money away maybe into life into a universal life insurance plan or whole life insurance plan. 

They also try to put away money into the stock market for the for the future. And they also try to invest into their business. So what you're essentially doing is you're spreading the money into many, many different hands. What we think you need to do in order to become more successful is to focus all of your money rather than spreading it out, focus all of your money, all of the things that you would have done to try to save money, like the CDs in the savings account, 401 K, IRA 529, all that money, why not concentrated into what we call your own bank. 

And from that point, what you do is you use the savings, to lend it back to yourself. Essentially focusing on attacking one debt at a time, it could be your credit card, maybe the one with the smallest balance. So you take this money, you lend it to yourself, and you pay off this debt. Once you finish paying off this debt, you then take this money and pay off the second credit card. Once you're done with those credit cards, you can focus in on your car loan. So now you work on that, till that's gone. 

Then from that point on you focusing on the next set, maybe it could be your student loans, and you work to pay that off. All along, you're getting paid, you're saving, you're going to lend this money back to yourself to pay off all these cards. And lastly, you're going to focus in on your biggest debt, which is typically your home mortgage, that's going to be the last step that you're going to attack. And typically I find a lot of people who work with us can finish paying those off, sometimes within 7 years or less. 

So you're going to scratch off this last mortgage, once you become debt free, where you basically don't have any of these debts anymore. What you're going to do since you're used to sending money to them, is now you're going to send money to who to pay yourself back. So you're going to have a loan repayment that plan. back into your your own bank account. 

And once that is paid off, then you no longer need to send money to the banks. In the future. If you ever need to buy a car again, who are you going to borrow funds, you're going to borrow from your own bank,you're not going to borrow from somebody else's bank. So the plan essentially here is simplified. 

Again, you do need some money to live to put that into your checking account. But you also need to start saving money, you put that into a savings account. From the savings account, you're going to open up what we call your own bank policy. And you're going to send monthly premiums every month into this. From this money, you're going to lend yourself a policy loan. So essentially, you're going to borrow the money. Put it back in here. 

What's is not here, you're going to send extra payments on top of your minimum payments to get rid of your debt. So you're going to focus on crossing off this debt and once you're done you're going to then send the money back and repay your policy loan I hope that this drawing makes things a little bit clearer for you