Infinite Banking for the Working Class
Possibly the most erroneous thinking about Infinite Banking is, “It’s only for the wealthy.” In reality, Infinite Banking is a financial tool, which helps working class people to become wealthier.
Here are some of the reasons people have come to believe Infinite Banking is only for the wealthy.
1. Discipline: It takes time to save enough to make Infinite Banking work.
2. Determination: Evaluation and making different choices about how money is spent is required to make Infinite Banking work.
3. Desire: Wishful thinking won’t cut it. A strong yearning to improve is necessary to make Infinite Banking work.
It is of interest, that most individuals on the Forbes 400 list did NOT inherit money from their family but made their own fortune. Couple this with, only 1 out of 3 millionaires consider themselves wealthy, and you have a fascinating picture of most of the people who are considered wealthy in America. Yes, there are a few outliers who inherited their money, but the majority of the wealthy made it all on their own. This is a great encouragement for the working class of America. It should never be a point of envy or resentment.
The book, Becoming Your Own Banker: The Infinite Banking Concept, is responsible for helping thousands of working-class Americans, become wealthier. R. Nelson Nash, the author of Becoming Your Own Banker, wrote the forward for my book Prescription For Wealth. This is what he said,
· “I have met thousands of people whose lives have been changed significantly for the better by practicing the principles that are in my book (Becoming Your Own Banker). No one is better at it than the McFie Family. They are awesome!”
These two books have some of the soundest financial wisdom available in print today. Together, these two books can help the most impoverished person become wealthy. But in order for this to happen, the principles in these two books must be learned, applied and put into practice.
The first sound piece of financial wisdom which must be learned and applied is to keep a portion of everything earned. This may sound silly but keeping at least 10% of everything you earn will make a huge difference in how wealthy you become. Without savings, which is the seed for future wealth, your fortune will never increase. Savings builds self-respect and confidence, while lack of savings feeds envy and resentment which cripples any effort to become wealthier.
Making sure your savings are in a place where they can be accessed without losing the compounding growth on your savings is the next sound piece of financial wisdom. Money merely saved, but not compounding, will lose value over time due to inflation. Only money which is experiencing compounding growth at a rate greater than what inflation is devaluing your savings, will enhance your ability to generate greater wealth. For this reason, Participating Whole Life Insurance designed to generate high cash value early on in the life of the policy, is one of the best places to store your savings.
Thirdly, recovering the cost of finance on major purchases, is a must if you purpose to become more prosperous. Here again, Participating Whole Life Insurance provides an ideal solution. Financing a $100,000 purchase @ 5% over 10 years, will cost you $1,060.66 per month or $127,279.20 total. This same $100,000 purchase financed via Infinite Banking leveraging a Participating Whole Life Insurance Policy will generate $335,060 of cash value ($700,722 - $365,662) over the 10 years it is financed. This is $207,780.80 more than $127,279.20. It is also $12,179.74 more than $100,000 of savings earning 5% and adding (depositing) an additional $12,720 annually to your savings over 10 years. Yet the difference is more significant than just $12,179.74 because if you had not spent your $100,000 you couldn’t have purchased the $100,000 asset.
Fourth, to become wealthier, you must exercise contentment. At some point, it is pointless to keep spending money on yourself, simply because it’s there to spend. Warren Buffett has lived in the same house since 1958. President Truman didn’t find it beneath himself to move back to Independence, Missouri when he retired from the presidency. Toyota, Honda and Ford are the most common automobiles driven by millionaires. The point is, don’t spend more than what it takes to live comfortably and the money you keep will continue to compound in your favor. Master this and you will become wealthier than 90% of your friends and family.
Lastly, never stop producing more wealth. Don’t fall into the retirement trap. Retire means, “to quit”. Most millionaires never see their first million before age 50. Many who do “make it” then fall for the lie which tells them they should spend it all before they pass. But leaving a legacy is not only a kind thing to do, it is a good thing to do. Proverbs 13:22 tells us, “A good man leaves an inheritance to his children’s children.” Here again Participating Whole Life Insurance provides a guaranteed way to make sure you leave a legacy while still providing adequately for your own needs while you’re still living. In fact, one study disclosed that 70% of Americans are unable to create an estate without owning Participating Whole Life Insurance.