Video Transcript: Traditional Banking vs Your Own Bank

Having a plan, like the become your own bank, some type of insurance is an asset. Because as we seen, it's going to take care of you for the rest of your life. 

Now, if we look at how banks work, how do banks work, we have the Federal Reserve, which oversees a bank, we have a commercial bank, each commercial bank was started by somebody on that bank, they make all the profits, they put in the initial capital, and they make all the profits from that bank. 

What a banks require banks need depositors, or people who open up money in a checking account, a savings account or a CD. And banks also need borrowers, people who come into the bank asking to borrow money to be for a mortgage, it could be for a car loan, it could be for on a credit card, they borrow the money, and they have to pay back to money with interest. 

So this is kind of the drawing that we showed a little earlier, where we said that your liabilities are your bank's assets, right here, liabilities are taking money out of your pocket. And they're putting it into the bank's assets, income costs. 

So this is why money works against you when you're in debt, because essentially, all the money that the banks are lending you, you're gonna have to pay it back with interest back to them. So look at their bottom line, their bottom line is growing tremendously. Now on the other side, your deposits, which is your CV, your bank, your checking account, your savings account, they're paying you that's their liability, so on that they're paying you very little interest, which is their expense, right? So we want to do is flip this on its head.

Now, what else is wrong with taking money from a traditional bank? If you've ever tried to borrow money from a traditional bank, you probably have encountered that it's not so easy, what do you need to bring to them in order to convince them to lend the money? 

Well, first, they're going to check your credit score, right, you're gonna have to show that you have an income, a steady income of jobs, you're gonna have to show them a good credit score, typically and also 700, for example, to buy a home, you're gonna have to bring them evidence that you are employed, which is typically a dollar or two, which shows how much money you've made, you're gonna have to bring on pay slip that are recent, you're gonna have to show them bank statements, tax returns, you're gonna basically almost like, you have to show them everything that you've ever done, you have to explain to them why you bought this, why you sold that?Where did this money come from, you have to document every single thing as many times as they want. Sometimes they verify employment up to two or three times when you're in the borrowing process. 

So it's a very intrusive process. It's a very difficult process, it's a very arduous process, it's emotionally taxing takes a lot of time, you have to have everything documented. And it's even happened up to me that they can even deny you a loan up until the day when it's supposed to close. Right? So who said who's in control? In this negotiation? Do you have a say in how much interest rate you're going to pay? Do you have a say in the terms and conditions of the bank loan? Of course not. 

Now, imagine what happens if you can't afford to keep making the payments. Let's say you lose your job temporarily or your business goes down or something happens. So what happens if you stop making monthly payments to a bank? Well, they ding your credit score, they hit you up with fees, they start penalizing you. And worst case scenario, they repossess and take back what you borrowed, right? 

So it's not fun dealing with banks. They're in control. The reason is, as Nelson Nash says, Those who have the gold make the rules. So what is it why is it important to become your own bank? If for nothing else, it's to take back control. take back control of your money, take back control of your life, right. If you're not dependent on a bank for a loan, then you don't really need them. out. 

One of the things I like to show people is that borrowing money from a life insurance company is very, very simple. In fact, it typically takes less than 60 seconds. To borrow money from them, all you need to do is go into their website, put in your password, and basically find out what's the maximum you're about, you're allowed to borrow based on your cash value up until that point, and then you just say, I want this much money, please send it to me via cheque or via automatic deposit into my bank account, you put in your city, you put in your name, you put in your password, and you push send. That's about as long as to take, I like to give you just a quick demo of how that works. 

So you can see for yourself, I am gonna here into my own one of my own accounts. So we go here, and we say, okay, I'd like to request a loan. Please continue. In here, here's where we basically would say, here's how much money I can borrow. So let's say we put $1,000. Here's my bank account. And, you know, here we put the city, put her signature, put the date. And again, we put the password and we push submit. That's how easy it is to borrow money. Typically the money is deposited into your bank account about three days after you make the request. Did they asked me what my credit score was? No, they asked me what I wanted the money for now that they asked me when I'm going to pay it back? No. Did they negotiate the give me a very high interest rate? No, I already know everything who's in control? I am. I'm in control of the banking function. So that's what I want for you, I want you to be in control of your banking function and not let the bank's be in control anymore

So ask yourself, where's all the money going? Right? Where does all the interest go? That you pay a bank? Bill, obviously, we know the answer. It goes into their pocket, it goes to make them rich, their shareholders rich, right? If you imagine your life like this plane, right, and you've got debt working against you, you're gonna fly a lot slower than if you had money going for you, you're gonna fly a lot faster. By financing things with your own money, you're essentially going to be making money upon the money that you borrow.

Think of when you buy a car, what are the different methods that you can use to buy a car or anything else for that matter, there's essentially three ways to do so to finance a car purchase, you can borrow and pay back later with interest from a bank. You can save inside a bank and pay cash and not pay out any interest. Or you can become your own bank, and pay yourself back with interest. 

Now let's look at each of these three things. Most people, what they typically do is they borrow from the typical bank, let's say in this case, $20,000 over five years, right? And they're going to borrow the money and then work really hard over the next five years to pay it back to the interest. Then they're gonna go back to the dealership, look for a new car and borrow again. And here we go. Every five years are going through the same process, right as a borrower. 

Now, if we look at how much money they're really doing, they're really spending, they're spending a ton of money. paying interest, let's say in this case, they were paying 10% interest. That means that over every car, they're going to end up spending about $5,000 of interest, right? If you do this over a lifetime, you're gonna end up spending a lot of money, making the banks rich. 

Let's think about the second approach, if you're a saver, you could say, You know what, I don't want to pay interest to the bank, what I'm going to do is I'm going to save the money first, once I have it, then I'll go ahead and buy myself a car. But what just happened when you did that how much money is left in the bank? Nothing, much of the bank paying you anyway, probably not very much in terms of interest. 

So if you keep doing this, every time, you're doing a little bit better than borrowing, but you're still not really making any money on your own money, because it has an opportunity cost, you're putting it into the car, and it's no longer earning money for you. Right, so in this example, we're just assuming that the interest you would have paid, you're gonna pay it to yourself. 

So you might end up a little bit better, but not quite much better. Now, when you open up, and you become your own bank, as we showed before your policy is going to start growing over time. And essentially, every time you take a policy loan, who are you paying it back to? Well, yourself. So every time, you're going to keep starting off from a higher and higher points, because the interest is going back into your own policy. 

So this is what we call the wealth creators, right? So what's better at the end of the day, to be a debtor, to be a saver or to be a wealth creator? Well, the numbers speak for themselves. If you basically run this car payment over and over through your own bank policy, you're going to end up with several hundreds of 1000s of dollars. 

We said earlier that people sometimes say we're where am I going to get that money for the fetal position, it's already running through your hands. Most people spend hundreds of dollars in car payments, debt payments, mortgage payments every month, why not go and make it go through your bank on yourself policy first, borrow with back and then pay off your debts with it. That way every month, you'd be accruing a death benefit going in your favor. 

So again, which one which rather be which rather be a debtor that's constantly fighting to pay back interest, which rather be a saver that earns no interest essentially, or to rather be a wealth creator, that's going to see an increase in your bottom line, year after year after year, from learning how to use your own money and paying it back to yourself with interest. 

So, once again, I think the solution and the conclusion of this program is why not work to be financially free. Why not investigate this in details and learn how to become your own bank. We really believe that it's the best thing that you can do for yourself and your family. 

And that if you learn how to do it properly, and you work with an expert who's done this many times for other people, you're really going to set yourself up for success. If you work with an agent who's not familiar with this concept. I hate to say it but you're probably going to screw things up and you're going to end up wasting money and time, valuable time. So if you need help, contact us and we'd be happy to help you either ourselves or set you up with somebody where you live that can help you achieve the best result for for your situation.