1 00:00:00,000 --> 00:00:04,829 So many people are feeling the cash flow crunch right now, and all the standard 2 00:00:04,829 --> 00:00:10,529 advice tells you to sacrifice more, save harder, tighten your belt even further. 3 00:00:10,920 --> 00:00:13,894 But what if I told you the real solution isn't about cutting back? 4 00:00:13,924 --> 00:00:17,489 It's about taking control of the money you're already spending. 5 00:00:18,360 --> 00:00:21,989 Well, I've absolutely packed this episode with practical strategies 6 00:00:21,989 --> 00:00:25,979 to free up cash flow without sacrificing your quality of life. 7 00:00:26,379 --> 00:00:30,825 We will talk about why liquidity gives you power, that status quo 8 00:00:30,825 --> 00:00:33,525 investment tools like 401Ks never will. 9 00:00:33,855 --> 00:00:38,445 And we'll go over how to capture future income growth so that even if you got 10 00:00:38,445 --> 00:00:42,825 a 0% rate of return on your money, you'll end up millions of dollars 11 00:00:42,825 --> 00:00:44,445 of ahead of the typical investor. 12 00:00:44,835 --> 00:00:48,075 This is Stacked Life, the podcast that teaches you everything you need 13 00:00:48,075 --> 00:00:51,645 to know about The Infinite Banking Concept, whole life insurance, and 14 00:00:51,645 --> 00:00:53,385 the strategies that make it all work. 15 00:00:53,474 --> 00:00:56,955 And I'm John Perrings, an authorized Infinite Banking practitioner. 16 00:00:57,164 --> 00:01:00,974 I've implemented IBC for hundreds of clients and educated thousands 17 00:01:00,974 --> 00:01:06,855 more via my top rated podcast and financial resources at StackedLife.com. 18 00:01:07,525 --> 00:01:12,025 This is a bonus episode, wrapping up a four part series on the top challenges 19 00:01:12,025 --> 00:01:14,005 people are facing to get ahead today. 20 00:01:14,425 --> 00:01:19,315 So far, we've covered staying ahead of rising prices, financial instability 21 00:01:19,315 --> 00:01:23,995 and debt, employment and job market concerns, and the challenges when 22 00:01:23,995 --> 00:01:28,450 dealing with status quo financial planning advice that isn't delivering 23 00:01:28,525 --> 00:01:30,415 the outcomes people want or need. 24 00:01:30,994 --> 00:01:34,445 We addressed some of these challenges from a principles based standpoint 25 00:01:34,445 --> 00:01:38,869 in those individual episodes, but now I want to get practical. 26 00:01:39,260 --> 00:01:44,825 What are some tangible things we can do today, if we're feeling a cashflow crunch? 27 00:01:45,065 --> 00:01:48,845 How do we actually save more, create growth in our financial life 28 00:01:48,845 --> 00:01:50,375 and really start to pull ahead? 29 00:01:51,194 --> 00:01:54,675 As we get into this, let's get to the root of the issue first. 30 00:01:54,675 --> 00:01:58,454 And the root of the issue is that people really lack control over 31 00:01:58,454 --> 00:02:00,014 their money and their cash flow. 32 00:02:00,324 --> 00:02:05,364 Traditional planning, prioritizes sending money away to other people's financial 33 00:02:05,364 --> 00:02:09,954 systems, which are the banks, Wall Street, and government controlled plans. 34 00:02:10,564 --> 00:02:13,294 It leaves people cash, poor and vulnerable. 35 00:02:13,444 --> 00:02:17,794 Not only when life throws a curve ball, which we know happens from time to time, 36 00:02:18,034 --> 00:02:20,074 but also when opportunities come up. 37 00:02:20,654 --> 00:02:24,584 In the last episode, we talked about the number one rule of investing, 38 00:02:24,584 --> 00:02:29,444 which is "buy low, sell high." Yet most people, because of the way that 39 00:02:29,444 --> 00:02:33,464 their plans work, they're just plying money into the market over and over 40 00:02:33,464 --> 00:02:34,994 again, regardless of the timing. 41 00:02:34,994 --> 00:02:37,754 And they never really have the liquidity they need when 42 00:02:37,754 --> 00:02:39,534 it's actually time to buy low. 43 00:02:39,954 --> 00:02:44,234 And a lot of people talk about Warren Buffet as the model of investing. 44 00:02:44,234 --> 00:02:46,244 And Warren Buffet talked about this. 45 00:02:46,534 --> 00:02:50,884 He's famously said that the best time to buy is when there's blood in the streets. 46 00:02:50,884 --> 00:02:54,504 Meaning, there's a massive sell off and prices are very low. 47 00:02:54,774 --> 00:02:58,194 But no one is really set up to take advantage of opportunities like that. 48 00:02:58,194 --> 00:02:59,094 When they come along. 49 00:02:59,314 --> 00:03:03,214 They're so hyperfocused on whatever the next investment is that they 50 00:03:03,214 --> 00:03:06,754 can put their money into, they end up putting themselves in a position 51 00:03:06,754 --> 00:03:08,434 where they're highly illiquid. 52 00:03:08,764 --> 00:03:12,394 And so they can't take advantage of opportunities that come along. 53 00:03:12,614 --> 00:03:15,194 And when I'm talking about opportunities, I'm talking about 54 00:03:15,194 --> 00:03:17,204 real opportunities that show up. 55 00:03:17,204 --> 00:03:21,554 Real opportunities are often once in a lifetime opportunities, and 56 00:03:21,554 --> 00:03:25,424 most people cannot grab those when those opportunities come. 57 00:03:26,094 --> 00:03:27,685 I can speak for myself on this. 58 00:03:27,685 --> 00:03:32,395 When I hit a crossroads in my career, I had the savings built up because I 59 00:03:32,395 --> 00:03:35,844 had actually already implemented The Infinite Banking Concept in my own 60 00:03:35,844 --> 00:03:37,825 life, before getting into this business. 61 00:03:37,825 --> 00:03:40,435 I'd saved up a significant amount of cash. 62 00:03:41,005 --> 00:03:45,640 And it allowed me to completely change careers from tech into actually 63 00:03:45,640 --> 00:03:50,305 doing what I do now, which is helping people implement IBC for clients and 64 00:03:50,305 --> 00:03:52,615 helping teach clients how this works. 65 00:03:53,284 --> 00:03:57,875 When I shifted gears from tech into financial services completely, 66 00:03:58,354 --> 00:04:02,584 you know, changing gears in my career, starting my own business. 67 00:04:02,854 --> 00:04:07,054 For a long time I was a W2 employee, and when you switch over into the world 68 00:04:07,054 --> 00:04:11,314 where you are kind of, you know, sink or swim, it's a pretty big change. 69 00:04:11,314 --> 00:04:15,244 And, you know, one of the ways I was able to make it, I, I would like to think I 70 00:04:15,244 --> 00:04:18,875 would've been able to make it no matter what, but there were some significant 71 00:04:18,875 --> 00:04:21,034 challenges in, in that gear change. 72 00:04:21,034 --> 00:04:25,684 Getting into this business and really learning how to justify an income from it. 73 00:04:26,044 --> 00:04:29,314 You know, my cash value life insurance really helped me through 74 00:04:29,464 --> 00:04:30,914 that period where, you know. 75 00:04:31,760 --> 00:04:37,339 It, it was not automatic that income was coming in, and now here I am in a 76 00:04:37,339 --> 00:04:41,299 career that I love more than anything else I've ever done professionally. 77 00:04:41,329 --> 00:04:42,739 I love my clients. 78 00:04:42,744 --> 00:04:44,390 It's, it's extremely rewarding. 79 00:04:44,689 --> 00:04:48,049 I'm doing financially better than I ever had, meaning I make more 80 00:04:48,049 --> 00:04:50,449 money than I ever did in a W2 job. 81 00:04:50,719 --> 00:04:55,039 And I have this really rewarding personal life, you know, with my family 82 00:04:55,039 --> 00:04:59,599 and my relationships, and I'm doing exactly what I wanna be doing, and 83 00:04:59,780 --> 00:05:04,339 here's why I'm bringing this up, this big improvement in a huge part of my 84 00:05:04,339 --> 00:05:06,469 life, which is my professional life, 85 00:05:06,719 --> 00:05:10,710 how could I ever assign a rate of return to something that changed my 86 00:05:10,710 --> 00:05:13,260 entire life for the better forever? 87 00:05:13,890 --> 00:05:17,910 You know, not everything is always about the dollars and the percentages, right? 88 00:05:17,910 --> 00:05:22,440 But even when it is, the real opportunities that come along are 89 00:05:22,440 --> 00:05:26,670 the opportunities that present themselves because you are who you are. 90 00:05:26,849 --> 00:05:31,080 You know what you know, you live where you live and you know the 91 00:05:31,080 --> 00:05:35,130 people that you know, they're usually very individual, and it's not always 92 00:05:35,130 --> 00:05:37,349 something you can necessarily predict. 93 00:05:38,169 --> 00:05:41,349 It's really kind of like the age old saying that luck is when 94 00:05:41,349 --> 00:05:43,179 preparation meets opportunity. 95 00:05:43,419 --> 00:05:46,689 And the preparation piece, when we're talking about The Infinite 96 00:05:46,689 --> 00:05:51,879 Banking Concept, the preparation is capitalizing, being able to roll with 97 00:05:51,879 --> 00:05:55,539 the punches, so to speak, but also being able to actually do something 98 00:05:55,539 --> 00:05:58,030 about a real opportunity when it arises. 99 00:05:58,429 --> 00:06:00,019 Here's another perfect example. 100 00:06:00,019 --> 00:06:04,189 One of my colleagues and friends recently bought his dream ski cabin 101 00:06:04,189 --> 00:06:08,899 in Aspen right off the lift, right off the slopes, ski-in-ski-out situation. 102 00:06:09,349 --> 00:06:12,859 And it's been his lifelong dream to have a cabin like this. 103 00:06:12,889 --> 00:06:16,759 And the only reason he was able to buy it is because he didn't have to spend 104 00:06:16,759 --> 00:06:20,359 the time trying to secure financing like the other people had to do. 105 00:06:20,629 --> 00:06:25,639 He had cash and he just paid as a cash buyer all from his whole life insurance. 106 00:06:25,639 --> 00:06:29,779 He had the cash within five business days, bought the place while everyone else was 107 00:06:29,779 --> 00:06:33,259 scrambling, going through underwriting, and trying to get approved for financing. 108 00:06:33,259 --> 00:06:36,529 He beat everybody else out because he was liquid. 109 00:06:37,049 --> 00:06:39,749 But it's also about rolling with the punches. 110 00:06:39,749 --> 00:06:43,799 You know, everyone puts the cart before the horse looking for all 111 00:06:43,799 --> 00:06:47,609 these exciting things like rates of returns and cool new investments 112 00:06:47,609 --> 00:06:51,569 and the next big thing and financial hacks and all these other things. 113 00:06:52,119 --> 00:06:55,959 Then when one thing goes wrong, they either don't have the liquidity to 114 00:06:55,959 --> 00:06:59,469 roll with the punches, so to speak, and it blows the whole thing up anyway. 115 00:06:59,899 --> 00:07:04,099 Or even worse, sometimes they've over leveraged themselves and they don't 116 00:07:04,099 --> 00:07:08,629 have the control over the payback terms, and now it really blows everything up. 117 00:07:09,779 --> 00:07:11,789 So where does this leave us? 118 00:07:11,879 --> 00:07:15,899 The number one improvement we can make to our financial lives is to really 119 00:07:15,899 --> 00:07:18,179 try to wrangle back control over it. 120 00:07:18,389 --> 00:07:21,629 And that's where the Infinite Banking and whole life insurance comes in. 121 00:07:22,049 --> 00:07:26,009 Whole life insurance is the cash asset that gives us liquidity 122 00:07:26,009 --> 00:07:27,899 and control over our capital. 123 00:07:28,239 --> 00:07:32,469 The Infinite Banking Concept is the process that we use to strategically 124 00:07:32,469 --> 00:07:34,719 accumulate and deploy that capital. 125 00:07:35,479 --> 00:07:39,739 One of the number one questions I get asked is, how much premium should I pay? 126 00:07:40,189 --> 00:07:43,789 And a lot of times people are trying to find the money they need from 127 00:07:43,819 --> 00:07:48,919 their existing cash flow to start the process of strategically capitalizing 128 00:07:48,919 --> 00:07:50,449 a whole life insurance policy. 129 00:07:50,899 --> 00:07:54,464 So for the rest of this episode, I'm going to share with you some practical 130 00:07:54,464 --> 00:08:00,194 ways to free up existing cash flow so that you can pay life premiums, either 131 00:08:00,194 --> 00:08:05,684 without coming out of pocket at all, or to supplement other cash flow to pay higher 132 00:08:05,684 --> 00:08:08,204 premiums and build even more cash value. 133 00:08:08,994 --> 00:08:12,384 Before I do that, if The Infinite Banking Concept is something that's 134 00:08:12,384 --> 00:08:15,474 been on your mind, but you've just been looking for the right time to start 135 00:08:15,474 --> 00:08:18,954 implementing it, maybe this episode is all you needed to get started. 136 00:08:19,284 --> 00:08:22,674 If that's the case, you can schedule a free 30 minute consultation 137 00:08:22,674 --> 00:08:25,104 with me right at StackedLife.com. 138 00:08:25,654 --> 00:08:28,654 On this call, you'll get all your questions answered, and learn 139 00:08:28,654 --> 00:08:30,994 whether or not IBC is right for you. 140 00:08:30,994 --> 00:08:33,754 And if so, what's the next best step you can take? 141 00:08:34,454 --> 00:08:39,315 Alright, first, let's talk about retirement plans, 401Ks, IRAs, et cetera. 142 00:08:39,914 --> 00:08:43,454 With these plans, you're really subjecting your money to a lot 143 00:08:43,454 --> 00:08:45,405 of rules in order to get to it. 144 00:08:45,405 --> 00:08:49,605 Now we've been talking a lot about liquidity and these are not technically 145 00:08:49,605 --> 00:08:54,525 totally illiquid accounts, but the penalties are so high to access them. 146 00:08:54,825 --> 00:08:57,255 They might as well be for all intents and purposes. 147 00:08:57,525 --> 00:09:02,325 It gets back to the idea that if anything goes wrong, the whole plan blows up 148 00:09:02,325 --> 00:09:06,781 anyway because that money is really supposed to be earmarked for the future. 149 00:09:06,841 --> 00:09:10,861 And if you have to raid those accounts, then that blows the plan up for what it 150 00:09:10,861 --> 00:09:12,901 was supposed to do for you in the future. 151 00:09:13,061 --> 00:09:14,741 I'll speak from experience here. 152 00:09:14,741 --> 00:09:19,151 When I first started working in the late nineties, the DotCom bust came 153 00:09:19,151 --> 00:09:24,281 around pretty quickly early on in my career, and I had to raid my 401k to 154 00:09:24,281 --> 00:09:26,201 get the money that I needed to live on. 155 00:09:26,471 --> 00:09:28,841 You know, again, my, my background is in tech. 156 00:09:29,051 --> 00:09:31,481 I worked at tech startups for years. 157 00:09:31,821 --> 00:09:36,501 And those are usually the first companies to start feeling pressure when money 158 00:09:36,501 --> 00:09:38,391 dries up during a market correction. 159 00:09:38,661 --> 00:09:42,861 A lot of the employees at startups or some of the first people to get laid off. 160 00:09:43,441 --> 00:09:45,331 So I've experienced all these things. 161 00:09:45,331 --> 00:09:48,661 I know exactly what it means to have to dive into those accounts in 162 00:09:48,661 --> 00:09:50,551 order to get the cash that you need. 163 00:09:50,851 --> 00:09:54,721 And once you do that, you lose all the growth on that money forever. 164 00:09:54,985 --> 00:09:58,225 I talk to a lot of people every day, and most of the time their 165 00:09:58,225 --> 00:10:01,285 main savings vehicle is their 401k. 166 00:10:01,535 --> 00:10:04,895 They might have a little bit of money sprinkled in some other investments or 167 00:10:04,895 --> 00:10:08,855 in a savings account or whatever, but the main thing that they have is their 401k. 168 00:10:09,395 --> 00:10:14,225 And a lot of times they're not saving a whole lot over the 401k contribution. 169 00:10:14,325 --> 00:10:18,675 So let's take a look at that 401k from a cashflow perspective, what 170 00:10:18,675 --> 00:10:24,105 is that 401k actually doing for you today to help keep you liquid and 171 00:10:24,105 --> 00:10:26,175 maintain control over your capital? 172 00:10:26,385 --> 00:10:29,655 What does that 401k or IRA doing for you right now? 173 00:10:30,930 --> 00:10:34,815 And a lot of people say it's a forced savings, which it, it kind of is. 174 00:10:35,175 --> 00:10:40,305 But again, you have this forced savings, so to speak, and when you really need it, 175 00:10:40,545 --> 00:10:45,135 you have to go raid that forced savings and spend it in order to pay the bills. 176 00:10:45,135 --> 00:10:48,255 The other thing people say is they get a tax deduction. 177 00:10:48,555 --> 00:10:52,895 And so let's just address that really quickly while we're on the topic of 401Ks. 178 00:10:53,235 --> 00:10:57,495 What you get with a standard 401k or IRA is not a tax 179 00:10:57,495 --> 00:10:59,655 deduction, it's a tax deferral. 180 00:10:59,895 --> 00:11:03,225 It's true that you don't have to pay the tax on the money that you 181 00:11:03,225 --> 00:11:08,115 contribute, but you're also losing access to that money that wasn't taxed. 182 00:11:08,535 --> 00:11:12,195 So the financial institutions get to hold onto that money and you're 183 00:11:12,195 --> 00:11:14,085 gonna pay the taxes on it later. 184 00:11:14,475 --> 00:11:18,975 So if you don't like paying tax on that money, now you like that tax deferral. 185 00:11:19,245 --> 00:11:22,195 How much are you going to like paying on that tax later? 186 00:11:22,665 --> 00:11:26,205 Especially when you want that money, maybe for retirement income. 187 00:11:26,895 --> 00:11:31,500 And this is the conventional financial planning thing where people tell you, you 188 00:11:31,505 --> 00:11:36,075 get a tax deduction, but you don't get a tax deduction, you get a tax deferral. 189 00:11:36,385 --> 00:11:41,515 Meanwhile, your money is locked up in 401k jail and you can't touch it for 20, 30, 190 00:11:41,515 --> 00:11:47,005 maybe even 40 years, unless you pay the tax and you pay that nice 10% penalty. 191 00:11:47,395 --> 00:11:51,175 This money is really doing absolutely nothing for you today. 192 00:11:51,785 --> 00:11:55,655 So where else could you put that money where you might get the same 193 00:11:55,655 --> 00:12:01,085 tax treatment or even better, maybe more more like a Roth IRA, where the 194 00:12:01,085 --> 00:12:06,665 after tax money goes in, it grows tax deferred, but you can get to it tax free. 195 00:12:06,905 --> 00:12:09,125 And the answer of course is whole life insurance. 196 00:12:09,175 --> 00:12:12,295 You're here listening to this probably because you're interested 197 00:12:12,295 --> 00:12:13,675 in The Infinite Banking Concept. 198 00:12:13,675 --> 00:12:15,865 So we're talking about whole life insurance today. 199 00:12:16,765 --> 00:12:21,325 If we want to get control and we're struggling with cash flow, why not 200 00:12:21,325 --> 00:12:26,635 redirect that cash flow from places where it removes control from our financial 201 00:12:26,635 --> 00:12:31,315 life and put it into a place where it increases control over our financial life? 202 00:12:31,705 --> 00:12:35,035 Not only does it increase control, but it also protects our family. 203 00:12:35,035 --> 00:12:39,025 If anything were to happen to us prematurely, like a death or a disability. 204 00:12:39,625 --> 00:12:43,945 Whole life insurance is kind of like a Swiss Army knife of financial products. 205 00:12:44,215 --> 00:12:47,755 Why not redirect that money, even if it's just temporarily 206 00:12:47,755 --> 00:12:49,465 while things are feeling tight, 207 00:12:49,515 --> 00:12:52,815 redirect some of that money into a place where you can control 208 00:12:52,815 --> 00:12:54,015 it and you can get to it. 209 00:12:54,715 --> 00:12:59,605 There are ways to design the policy where you can redirect that 401k money 210 00:12:59,635 --> 00:13:02,305 into the PUA portion of a policy. 211 00:13:02,845 --> 00:13:06,445 As I'm putting the final touches on this video, I realized I wasn't speaking 212 00:13:06,445 --> 00:13:10,585 very clearly right here, and I just wanted to make sure it's very clear. 213 00:13:11,335 --> 00:13:18,085 You cannot redirect money from a 401k into whole life insurance. 214 00:13:18,415 --> 00:13:22,465 What I was trying to say here is you could redirect the cash flow that was 215 00:13:22,765 --> 00:13:27,595 meant to go into your 401k and instead send it to whole life insurance. 216 00:13:27,665 --> 00:13:31,025 And when you do that, that money's basically a hundred percent liquid 217 00:13:31,025 --> 00:13:34,445 and you can get to it if you have an emergency and you can get to 218 00:13:34,445 --> 00:13:35,855 it if you have an opportunity. 219 00:13:36,255 --> 00:13:39,825 And because you can get to it when you have that opportunity. 220 00:13:40,185 --> 00:13:44,415 Couldn't you conceivably use that cash value via the policy loan provision 221 00:13:44,415 --> 00:13:48,735 to buy other investments that you actually have control over and get 222 00:13:48,735 --> 00:13:52,845 the growth that you would've gotten in the 401k anyway, if not even better. 223 00:13:53,251 --> 00:13:56,251 One of the ideas here is you could contribute to your 224 00:13:56,251 --> 00:13:58,951 401k only up to the match. 225 00:13:59,221 --> 00:14:02,671 You know, if you get a company match where they actually match the amount 226 00:14:02,671 --> 00:14:07,771 you're putting into the 401k, you could take a look at what that maximum match 227 00:14:07,771 --> 00:14:12,391 is and you can contribute just up to that so you can get that so-called 228 00:14:12,391 --> 00:14:16,921 "free money." Then anything over and above that match, redirect that into 229 00:14:16,921 --> 00:14:20,341 your whole life insurance policy, especially into the PUA piece of it. 230 00:14:21,081 --> 00:14:24,471 Or if you're like me, I don't want any of my money out of my control. 231 00:14:24,471 --> 00:14:29,811 So I forego the match altogether because I know that I can deploy my capital in a 232 00:14:29,811 --> 00:14:33,741 much more efficient manner, where match is really not that big of a deal to me. 233 00:14:34,051 --> 00:14:38,101 By the way, you can go to my website, StackedLife.com, and in the video 234 00:14:38,101 --> 00:14:43,531 section, look for the video about the truth on your 401k, where I really 235 00:14:43,531 --> 00:14:45,001 do a deep dive into the numbers. 236 00:14:45,001 --> 00:14:48,601 And you can see that that match really doesn't do as much as you think it does. 237 00:14:49,591 --> 00:14:52,621 So here's another thing you could consider, which has more 238 00:14:52,621 --> 00:14:56,191 to do with the timing on when you contribute to your 401k. 239 00:14:56,191 --> 00:15:00,511 You could look at implementing something that we like to call a 401k delay. 240 00:15:01,081 --> 00:15:05,401 And if you're looking at capitalizing and creating a pool of capital, but 241 00:15:05,401 --> 00:15:09,331 you really believe that a 401k is something that you want in your financial 242 00:15:09,361 --> 00:15:13,531 life, you could look at just delaying when those contributions happen. 243 00:15:14,101 --> 00:15:16,951 And the principle behind this is that with a 401k. 244 00:15:17,416 --> 00:15:21,646 We know we can invest in a 401k today, tomorrow, 10 years 245 00:15:21,646 --> 00:15:23,266 from now, 20 years from now. 246 00:15:23,596 --> 00:15:26,356 You know, obviously depending on how old you are, but you can pretty 247 00:15:26,356 --> 00:15:28,996 much always contribute to a 401k. 248 00:15:29,696 --> 00:15:33,806 What we don't know is whether or not you can always qualify for life insurance 249 00:15:33,806 --> 00:15:35,606 because it's based on your life. 250 00:15:35,846 --> 00:15:38,906 You have to qualify with your age, health, and wealth. 251 00:15:39,206 --> 00:15:43,466 And since we unfortunately never get any younger, the best time to buy 252 00:15:43,466 --> 00:15:47,336 life insurance if you're in the market for it is while you're still young. 253 00:15:47,696 --> 00:15:52,586 So why not qualify for a whole life insurance policy and lock that in at 254 00:15:52,586 --> 00:15:54,926 the very best time, which is today? 255 00:15:54,926 --> 00:15:59,516 And instead of your contributions going to your 401k, for a period of 256 00:15:59,516 --> 00:16:04,686 time, maybe three to seven years, we redirect those cash flows to paying 257 00:16:04,686 --> 00:16:09,816 the premium of your new whole life insurance policy or even an existing one. 258 00:16:10,576 --> 00:16:13,576 Two things will happen during this delay period. 259 00:16:13,966 --> 00:16:18,826 Number one, the policy will have become more mature and if desired, you could 260 00:16:18,826 --> 00:16:23,956 drop the PUA portion of that and just make the base premium payments, which at 261 00:16:23,956 --> 00:16:28,696 that point are typically more efficient than the PUA payments, believe it or not. 262 00:16:28,976 --> 00:16:31,856 Now you can take that cash flow and now you can start 263 00:16:31,856 --> 00:16:33,836 contributing to your 401k again. 264 00:16:34,586 --> 00:16:39,236 The other thing that happens is your income tends to increase as time goes on. 265 00:16:39,236 --> 00:16:44,426 And quite often when we illustrate this out, people's income will have increased 266 00:16:44,426 --> 00:16:48,896 to a point where they can pay some or even all of the insurance premium, 267 00:16:49,256 --> 00:16:53,576 and they can start to contribute to the 401k, possibly even maxing it out. 268 00:16:54,096 --> 00:16:58,566 And so this is a pretty powerful forced saving strategy that gives you a lot 269 00:16:58,566 --> 00:17:00,666 more liquidity and a lot more control. 270 00:17:00,666 --> 00:17:04,206 The second strategy we could look at involves your mortgage. 271 00:17:04,476 --> 00:17:07,716 This is kind of the same thing as your 401k in some ways. 272 00:17:07,716 --> 00:17:12,216 Your, your home is an asset that you own, but it's not necessarily 273 00:17:12,216 --> 00:17:13,806 an asset that you control. 274 00:17:13,936 --> 00:17:18,076 Until you have that mortgage fully paid off, the bank really controls 275 00:17:18,076 --> 00:17:22,936 that asset, and what I see happening is people contribute more than what 276 00:17:22,936 --> 00:17:24,826 their mortgage, payment requires. 277 00:17:24,826 --> 00:17:27,376 They pay down the principle of the loan faster. 278 00:17:27,376 --> 00:17:31,846 Sometimes it's called pre-paying your mortgage in order to not only pay the loan 279 00:17:31,846 --> 00:17:36,466 off faster, but they're also taught that they can save on those interest dollars. 280 00:17:36,826 --> 00:17:41,146 And, and that's true by the way, you do save on the interest of your mortgage 281 00:17:41,146 --> 00:17:44,686 when you make additional payments towards that mortgage, additional principal 282 00:17:44,686 --> 00:17:49,276 payments, but especially for people that purchased a home in like in the last 283 00:17:49,276 --> 00:17:53,716 10 or 15 years when interest rates were really coming down or maybe you even 284 00:17:53,716 --> 00:17:56,086 refinanced into a lower interest rate. 285 00:17:56,356 --> 00:18:00,046 I see a lot of people with, you know, sub three mortgage interest rates. 286 00:18:00,436 --> 00:18:05,296 And you've gotta ask yourself the question is paying down the principle and saving 287 00:18:05,296 --> 00:18:10,606 on, call it 3% interest, is that really the best thing you could be doing with 288 00:18:10,606 --> 00:18:14,356 those extra dollars that you're using to make those additional payments? 289 00:18:14,756 --> 00:18:18,326 The way I describe this is when you're making additional payments, when you 290 00:18:18,326 --> 00:18:24,806 pay extra on your mortgage and using the example, if you have a 3% mortgage, that's 291 00:18:24,806 --> 00:18:27,716 a 3% job that you're giving that dollar. 292 00:18:27,956 --> 00:18:30,896 So the question you have to ask yourself, can I do something 293 00:18:30,896 --> 00:18:33,326 where the job is better than 3%? 294 00:18:33,686 --> 00:18:37,916 So just as an example, if you put that extra dollar into whole life 295 00:18:37,916 --> 00:18:42,956 insurance, instead you'd be giving that dollar a four or maybe 5% job, 296 00:18:42,956 --> 00:18:44,546 depending on your age or health. 297 00:18:45,026 --> 00:18:50,426 And over that same 30 years, assuming a 30 year mortgage, the math proves this 298 00:18:50,426 --> 00:18:53,546 out, doesn't, by the way, it doesn't matter if it's a 15 year mortgage, 299 00:18:53,666 --> 00:18:55,736 if it's over the same time period. 300 00:18:56,126 --> 00:19:00,626 There's just no question that over that same time period, you might be 301 00:19:00,626 --> 00:19:04,256 done paying the mortgage sooner, and you might have saved a little bit of 302 00:19:04,256 --> 00:19:09,506 interest, but you could have been giving that money a 5% job instead of a 3% job. 303 00:19:09,506 --> 00:19:12,356 And assuming the same rates of return, 304 00:19:12,406 --> 00:19:16,006 You'll come out way ahead over that, over that time period, 305 00:19:16,186 --> 00:19:19,096 putting your money into that 5% job. 306 00:19:19,096 --> 00:19:22,696 That's just how the math works, and a lot of people are surprised by that. 307 00:19:22,996 --> 00:19:27,526 Now you will have paid more interest on your mortgage, but the fact that 308 00:19:27,526 --> 00:19:31,876 you're getting a higher return on those extra dollars that you're giving a 309 00:19:31,876 --> 00:19:37,066 better job to you will actually come out ahead and it will create more value 310 00:19:37,066 --> 00:19:39,376 for you over that same period of time. 311 00:19:39,677 --> 00:19:43,697 Now, the rates of course matter on this a little bit, but the idea is that 312 00:19:43,787 --> 00:19:45,707 we want to get some more liquidity. 313 00:19:45,707 --> 00:19:47,627 We want to get some more control. 314 00:19:47,867 --> 00:19:51,107 So maybe it's not whole life insurance that you put your money into. 315 00:19:51,107 --> 00:19:54,977 The idea though is that every time we make an additional payment towards 316 00:19:54,977 --> 00:19:58,817 the principal of our mortgage, that money gets kind locked away, 317 00:19:58,817 --> 00:20:01,277 proverbially in the walls of our house. 318 00:20:01,277 --> 00:20:05,777 If you think about it, you don't really have control over that extra dollar 319 00:20:05,777 --> 00:20:09,437 that you put there because what it does is it builds equity, but it has 320 00:20:09,437 --> 00:20:13,307 absolutely nothing to do with the value of your house or anything like that. 321 00:20:13,307 --> 00:20:15,857 It's just building more equity in your house. 322 00:20:16,347 --> 00:20:19,857 To get to that equity, you first have to get the permission from a 323 00:20:19,857 --> 00:20:21,717 bank or some other type of lender. 324 00:20:21,717 --> 00:20:25,347 So why not take those extra dollars you're putting towards paying down 325 00:20:25,352 --> 00:20:29,367 your mortgage faster and put that into something that will actually create 326 00:20:29,367 --> 00:20:34,377 control, create liquidity, and then allow you to further deploy that capital 327 00:20:34,497 --> 00:20:37,047 to create growth outside of your house. 328 00:20:37,747 --> 00:20:40,767 Now there is another side of this discussion and sometimes 329 00:20:40,767 --> 00:20:44,307 people just really don't want to be beholden to the bank. 330 00:20:44,307 --> 00:20:46,377 They really want to get out from under that loan. 331 00:20:47,397 --> 00:20:51,567 And I would argue that until the house is completely paid off, the 332 00:20:51,567 --> 00:20:53,577 more equity you build in the house, 333 00:20:53,607 --> 00:20:55,887 it puts you in a worse position with the bank. 334 00:20:56,307 --> 00:20:58,977 The banks don't want to hold your real estate, they just 335 00:20:58,977 --> 00:21:00,237 want to get their money back. 336 00:21:00,507 --> 00:21:04,497 So if you have a decent amount of equity built up and then you start 337 00:21:04,497 --> 00:21:07,917 missing payments because you don't have any liquidity, 'cause you 338 00:21:07,917 --> 00:21:11,937 put it all into paying down your mortgage, you might actually be 339 00:21:11,937 --> 00:21:14,007 in a worse position with the bank. 340 00:21:14,167 --> 00:21:17,757 It's an easier decision for them to just fire sale the 341 00:21:17,757 --> 00:21:19,257 house and get their money back. 342 00:21:19,617 --> 00:21:23,937 So it's a little bit counterintuitive, but paying off your house, the more it's paid 343 00:21:23,937 --> 00:21:28,407 off, actually probably the worst position you're in to negotiate with the bank. 344 00:21:28,767 --> 00:21:29,037 So. 345 00:21:29,607 --> 00:21:31,497 What's, what's a better scenario? 346 00:21:31,497 --> 00:21:35,667 Is it better to have the ability to make a payment if you're, if you are 347 00:21:35,667 --> 00:21:39,897 having trouble and might miss one where you have some cash to fall back 348 00:21:39,897 --> 00:21:41,487 on and actually make that payment? 349 00:21:41,757 --> 00:21:44,997 Or is it better to lock all your money away in the walls of the house? 350 00:21:44,997 --> 00:21:48,477 And then if you have trouble making a payment, now you're 351 00:21:48,477 --> 00:21:50,157 subject to the whims of the bank? 352 00:21:50,517 --> 00:21:53,397 I would argue that you'd be in a much better position. 353 00:21:53,607 --> 00:21:57,447 If you're highly liquid and you come across a period of time when you're having 354 00:21:57,447 --> 00:22:01,737 trouble making your mortgage payment, you can fall back on your cash value, 355 00:22:01,947 --> 00:22:05,847 cover yourself to make those mortgage payments, and then you can pay your policy 356 00:22:05,847 --> 00:22:10,797 back and never having lost the growth on that cash value all along the way. 357 00:22:10,797 --> 00:22:11,157 Alright. 358 00:22:11,217 --> 00:22:13,552 Now let's look at a different type of debt. 359 00:22:14,062 --> 00:22:17,902 Mortgage isn't the only type of debt people make additional payments to. 360 00:22:18,392 --> 00:22:22,622 If you have a bunch of high interest credit card debt, that's something that 361 00:22:22,622 --> 00:22:24,812 people also make additional payments to. 362 00:22:24,812 --> 00:22:28,562 So if you're doing something like a debt snowball, for example, and you've 363 00:22:28,562 --> 00:22:31,802 got high interest debt that you're paying off and you're making additional 364 00:22:31,802 --> 00:22:36,662 payments towards that debt to pay it off faster, that's a valid strategy. 365 00:22:36,732 --> 00:22:38,782 But it may not be the only strategy. 366 00:22:38,782 --> 00:22:41,242 So let's take a look at this credit card debt, and let's say 367 00:22:41,242 --> 00:22:43,462 you've got credit card debt at 20%. 368 00:22:44,362 --> 00:22:48,172 Every time you make additional payments towards paying down that debt, 369 00:22:48,502 --> 00:22:51,112 that's basically like a 20% return. 370 00:22:51,392 --> 00:22:55,382 But the problem with paying off debt and making additional payments over a 371 00:22:55,382 --> 00:22:59,822 long period of time is that you're still negatively affecting your liquidity 372 00:23:00,092 --> 00:23:03,872 and negatively affecting the control you have over your financial life. 373 00:23:03,872 --> 00:23:09,512 It is more efficient to pay debt directly, especially if it's high interest debt. 374 00:23:10,082 --> 00:23:15,182 However, you can also look at using whole life insurance as an intermediate step. 375 00:23:15,692 --> 00:23:19,982 It is slightly less efficient, but it introduces an element of liquidity 376 00:23:19,982 --> 00:23:21,692 and control back into your life, 377 00:23:21,692 --> 00:23:26,252 and it's still a massive, massive improvement over paying 20% debt. 378 00:23:26,252 --> 00:23:30,062 What you could do is instead of making additional payments towards your credit 379 00:23:30,062 --> 00:23:35,252 cards, you could use that cash flow to fund a life insurance policy and 380 00:23:35,252 --> 00:23:39,542 then use the policy loan provision to take a policy loan, let's call it a 381 00:23:39,542 --> 00:23:43,772 5% policy loan, to pay off 20% debt. 382 00:23:44,042 --> 00:23:47,822 That's a massive improvement on what's going on, and by the time you're paying 383 00:23:47,822 --> 00:23:53,252 off all that debt, including your policy loan, you now at the end of all that, you 384 00:23:53,252 --> 00:23:57,752 have a bunch of cash that you're sitting on rather than prioritizing paying all 385 00:23:57,752 --> 00:24:01,832 this debt, and by the time you're done paying off of all the debt, you don't have 386 00:24:01,832 --> 00:24:03,662 anything and you're starting from zero. 387 00:24:03,662 --> 00:24:07,622 I think that's the number one problem with some of these debt payoff strategies. 388 00:24:07,892 --> 00:24:09,662 You don't have anything at the end of it. 389 00:24:09,662 --> 00:24:12,812 A lot of times if one thing goes wrong, you just end up 390 00:24:12,812 --> 00:24:14,252 going back into debt again. 391 00:24:14,712 --> 00:24:19,427 By using whole life insurance as a strategy and using policy loans to pay 392 00:24:19,427 --> 00:24:23,907 off high interest debt, you could stop funneling money into the extra payments on 393 00:24:23,907 --> 00:24:28,107 your credit card, because once that money goes to them, it's up to them whether 394 00:24:28,107 --> 00:24:29,967 they want to keep you as a customer. 395 00:24:30,127 --> 00:24:31,957 I'll use myself as an example. 396 00:24:31,957 --> 00:24:32,227 Again. 397 00:24:32,227 --> 00:24:36,667 I was in college and walked by one of those little sign up tables where they're 398 00:24:36,667 --> 00:24:40,867 happy to sign up college kids with no credit history into a credit card. 399 00:24:41,342 --> 00:24:44,137 And I had this credit card for years, by the way, and I had a 400 00:24:44,137 --> 00:24:45,607 balance on it for a long time. 401 00:24:45,607 --> 00:24:50,737 And then I paid it off and then I'll go back to my DotCom timeframe, because 402 00:24:50,737 --> 00:24:54,787 of all that stuff that I mentioned during the DotCom bust, I racked up a 403 00:24:54,787 --> 00:24:59,017 little bit of a balance on it again, and you know, so anyway, I've been 404 00:24:59,017 --> 00:25:03,067 paying this thing off for years and I finally worked it down to zero balance. 405 00:25:03,277 --> 00:25:07,327 Then something else happened because I prioritized paying off the credit card. 406 00:25:07,327 --> 00:25:11,887 I didn't have any cash to roll with the punches, and I put a balance back 407 00:25:11,887 --> 00:25:14,947 on it again, and I paid it off again. 408 00:25:15,247 --> 00:25:17,197 And then they canceled my card. 409 00:25:17,544 --> 00:25:21,414 And what happened was I prioritized paying off that card and when they 410 00:25:21,414 --> 00:25:26,254 canceled it, it was no longer a place where I could go to access cash because 411 00:25:26,254 --> 00:25:28,774 I didn't have control over that source. 412 00:25:28,864 --> 00:25:33,364 Paying that off actually hurt me cashflow wise because I wanted to pay it off 413 00:25:33,364 --> 00:25:37,024 and stop paying the interest, thinking, okay, I'll pay off the card and I'll 414 00:25:37,024 --> 00:25:40,624 still have that credit just in case I needed, you know, if anything happened. 415 00:25:40,984 --> 00:25:45,214 But then they canceled the card, closed my account as, so I lost that source 416 00:25:45,214 --> 00:25:49,294 of liquidity, which was not good for me at that particular stage in life. 417 00:25:49,294 --> 00:25:52,954 So instead of sending money to the credit card companies where they can 418 00:25:52,954 --> 00:25:57,124 just close your account if they want to, why not send those extra payments that 419 00:25:57,124 --> 00:26:01,694 you don't have to make over and above the minimum payment and send it to whole 420 00:26:01,694 --> 00:26:03,944 life insurance where you have control. 421 00:26:04,407 --> 00:26:08,757 Then we just use policy loans to strategically pay those credit cards down. 422 00:26:09,417 --> 00:26:12,777 I have a whole system and software that I use to help map this out. 423 00:26:12,807 --> 00:26:15,927 If it's ever of interest to you, get ahold of me and we can map out 424 00:26:15,927 --> 00:26:19,587 an entire debt payback strategy using whole life insurance to get 425 00:26:19,587 --> 00:26:21,177 you out of high interest debt. 426 00:26:21,877 --> 00:26:24,427 Here's another place where we can free up some cash flow. 427 00:26:24,567 --> 00:26:26,077 529 plans. 428 00:26:26,377 --> 00:26:29,677 People are putting money into these college savings plans with all these 429 00:26:29,677 --> 00:26:32,167 restrictions on how the money can be used. 430 00:26:32,647 --> 00:26:34,447 What if your kid doesn't go to college? 431 00:26:34,447 --> 00:26:35,797 What if they get a scholarship? 432 00:26:36,067 --> 00:26:39,727 What if they need money for something else be, you know, when they're 18 years old? 433 00:26:40,117 --> 00:26:44,467 Again, that's cashflow that's going away from you and 434 00:26:44,467 --> 00:26:46,057 there's strings attached to it. 435 00:26:46,687 --> 00:26:50,287 Instead, you could fund a whole life insurance policy, and if you need 436 00:26:50,287 --> 00:26:51,937 the money for college, it's there. 437 00:26:52,217 --> 00:26:56,777 If you don't, you still have that capital for whatever you want to spend it on. 438 00:26:56,777 --> 00:27:01,577 You're not subject to other people's rules for all that money that you saved up. 439 00:27:02,322 --> 00:27:03,852 So there's your college savings. 440 00:27:03,852 --> 00:27:04,812 That was a quick one. 441 00:27:05,112 --> 00:27:06,192 Here's another angle. 442 00:27:06,462 --> 00:27:08,502 Let's talk about property taxes. 443 00:27:08,802 --> 00:27:13,002 If you have annual property taxes due, and you're saving money for 444 00:27:13,002 --> 00:27:17,142 those property taxes anyway, you could divert that cash flow from your 445 00:27:17,142 --> 00:27:21,822 property tax savings and use it to pay premium on your life insurance policy. 446 00:27:22,342 --> 00:27:26,512 Then at the end of the year, you use a policy loan to pay your property taxes. 447 00:27:26,912 --> 00:27:32,132 Instead of the next year, just saving up all over again only to then just spend it. 448 00:27:32,612 --> 00:27:36,592 You can save up again by paying off the loan you created to pay your 449 00:27:36,592 --> 00:27:38,572 property taxes the year before. 450 00:27:38,962 --> 00:27:43,432 Now you've freed up that capital all over again to pay your next property tax bill. 451 00:27:43,772 --> 00:27:47,582 What's happening is your cash value is going to continue growing and 452 00:27:47,582 --> 00:27:49,652 compounding on the total amount. 453 00:27:50,082 --> 00:27:52,662 Meanwhile, you're only borrowing the amount that your 454 00:27:52,662 --> 00:27:54,372 property tax is every year. 455 00:27:54,582 --> 00:27:59,292 So over a period of time, the growth of your policy starts to outpace what 456 00:27:59,292 --> 00:28:03,162 you're using in policy loan interest every year to pay your property taxes. 457 00:28:03,642 --> 00:28:07,302 This can be an easy way to find premium dollars that can be used to better 458 00:28:07,302 --> 00:28:11,712 capitalize your system over and above just saving up and spending every single year. 459 00:28:12,167 --> 00:28:16,577 This last piece that I'm going to go over can be super powerful for anybody. 460 00:28:17,057 --> 00:28:19,817 Let's say there's nothing you can eke out right now. 461 00:28:19,997 --> 00:28:23,747 You're not contributing to a 401k, you're not making additional payments 462 00:28:23,747 --> 00:28:25,457 to your mortgage or your credit card. 463 00:28:25,637 --> 00:28:28,187 You're not contributing to a 529 plan. 464 00:28:28,427 --> 00:28:31,727 You're not paying your property taxes, or I should say you don't have a 465 00:28:31,727 --> 00:28:33,797 property tax bill that you have to pay. 466 00:28:34,067 --> 00:28:35,717 You wanna pay your property taxes. 467 00:28:36,612 --> 00:28:40,092 Let's just say you're really just maxed out in terms of cash flow. 468 00:28:40,602 --> 00:28:45,342 Well, there is one thing that we can count on, and that's typically everyone's 469 00:28:45,342 --> 00:28:47,592 income will increase over time. 470 00:28:48,072 --> 00:28:53,042 So at the very least, most people will at least get a cost of living wage increase. 471 00:28:53,252 --> 00:28:56,342 But even more likely, of course, promotions will happen. 472 00:28:56,522 --> 00:28:59,822 You'll move on to new companies, maybe you'll even start a business and 473 00:28:59,822 --> 00:29:02,042 income will tend to grow over time. 474 00:29:02,612 --> 00:29:06,512 So even if we don't necessarily have anything we can do today to really 475 00:29:06,512 --> 00:29:11,102 start diverting cash flow to a place where you know it can do more for us, 476 00:29:11,162 --> 00:29:13,832 we can actually still plan for tomorrow. 477 00:29:14,042 --> 00:29:17,942 We can start keeping track of our cash flow and more importantly, 478 00:29:17,942 --> 00:29:22,052 start keeping track of the growth of our expenses in the future. 479 00:29:22,572 --> 00:29:26,742 The typical way that people try to address cash flow or a cash flow 480 00:29:26,742 --> 00:29:31,572 crunch, regardless of your income bracket is a lot of times we're taught 481 00:29:31,572 --> 00:29:36,042 to go on a financial diet, so to speak, in the form of a budget where you 482 00:29:36,042 --> 00:29:38,262 sacrifice your quality of life today. 483 00:29:38,682 --> 00:29:42,132 And if you're living paycheck to paycheck right now or struggling to really 484 00:29:42,132 --> 00:29:44,412 save, it's really not a great option. 485 00:29:44,512 --> 00:29:47,872 It really just ends up being kind of a short term thing where you try to 486 00:29:47,872 --> 00:29:51,532 do it and then something comes up and you're not able to do it anymore and 487 00:29:51,532 --> 00:29:55,072 you're just kind of on this cycle and you usually end up giving up and you 488 00:29:55,072 --> 00:29:57,262 end up just being a bad spender anyway. 489 00:29:57,682 --> 00:30:00,832 Your standard of living right now is your standard of living. 490 00:30:01,342 --> 00:30:05,362 So a better way to do this is not to try to change anything today. 491 00:30:05,702 --> 00:30:09,392 If you can change what you're doing today, that's great, but if you can't, what 492 00:30:09,392 --> 00:30:13,922 we want to do is make sure that we're capturing the difference in the future. 493 00:30:14,472 --> 00:30:19,392 What normally happens to people is as their income increases, their expenses 494 00:30:19,392 --> 00:30:21,972 tend to increase at the exact same rate. 495 00:30:22,302 --> 00:30:26,372 And the difference between their income and their expenses never changes. 496 00:30:26,852 --> 00:30:29,882 And what we wanna do is we wanna try to capture the 497 00:30:29,882 --> 00:30:31,832 savings inside that difference. 498 00:30:32,282 --> 00:30:35,192 But if you have no difference right now, meaning you can't save 499 00:30:35,192 --> 00:30:39,572 any money, it's highly likely that that will continue into the future. 500 00:30:39,822 --> 00:30:43,122 And this is why I've introduced the cashflow management system 501 00:30:43,122 --> 00:30:45,792 called Currence into my practice. 502 00:30:45,792 --> 00:30:48,882 And what Currence does is it allows regular people like 503 00:30:48,882 --> 00:30:54,582 you and me to consciously save rather than unconsciously spend. 504 00:30:55,332 --> 00:30:59,652 And what we're able to do by using Currence is slow the increase of our 505 00:30:59,652 --> 00:31:04,422 expenses in the future without making any changes to our lifestyle today. 506 00:31:04,612 --> 00:31:08,542 We don't have to slash our costs today, and we don't have to eliminate the 507 00:31:08,542 --> 00:31:12,622 growth of our expenses, but we just want to slow it down and not let it 508 00:31:12,622 --> 00:31:14,692 grow at the same rate as our income. 509 00:31:15,202 --> 00:31:20,332 By doing this, we can redirect freed up money so that we can start deploying 510 00:31:20,332 --> 00:31:24,802 that money in ways that create more income for us, and then it just builds 511 00:31:24,802 --> 00:31:25,957 and builds and builds from there. 512 00:31:27,292 --> 00:31:31,372 What ends up happening is when people implement Currence in their life, they 513 00:31:31,372 --> 00:31:36,712 find that they're saving like 300 to 600% more than the average American. 514 00:31:37,042 --> 00:31:40,702 And by being able to save more, then we can buy more growth 515 00:31:40,702 --> 00:31:42,892 assets, which creates more income. 516 00:31:43,192 --> 00:31:47,432 And even though the percentage of our spending, is less than what 517 00:31:47,432 --> 00:31:51,662 we originally had, the dollars that they can spend because they have 518 00:31:51,662 --> 00:31:54,182 more income grows significantly. 519 00:31:54,182 --> 00:31:56,582 So their lifestyle actually improves. 520 00:31:56,772 --> 00:32:01,092 Their spending rate might be less, but their spending dollars are more 521 00:32:01,272 --> 00:32:04,602 because they're saving way more and now and they're creating more income. 522 00:32:04,992 --> 00:32:09,222 Everything improves because everything starts from your cash flow. 523 00:32:09,712 --> 00:32:11,392 This is the thing we want to do. 524 00:32:11,392 --> 00:32:15,742 We wanna start looking at processes, not necessarily investments or 525 00:32:15,742 --> 00:32:17,302 products or things like that. 526 00:32:17,302 --> 00:32:23,512 We want to operate with a process in mind and not just chase the next investment. 527 00:32:24,172 --> 00:32:27,862 Once we have the process in place, it doesn't matter as much what the 528 00:32:27,892 --> 00:32:32,062 individual investments are because as Nelson Nash said in his book, Becoming 529 00:32:32,062 --> 00:32:37,222 Your Own Banker, when you have cash opportunities have a way of finding you. 530 00:32:37,612 --> 00:32:41,152 So rather than just searching for that next thing you can just put 531 00:32:41,152 --> 00:32:45,232 money into without thinking about it, if you have money, you'll almost 532 00:32:45,232 --> 00:32:49,342 definitely come across opportunities that you don't even really have to try. 533 00:32:49,705 --> 00:32:50,045 All right. 534 00:32:50,130 --> 00:32:51,630 I hope this really helped you guys. 535 00:32:51,840 --> 00:32:54,750 If you find these principles are resonating with you and you'd like 536 00:32:54,750 --> 00:32:57,990 to learn more about how they might apply in your life, specifically, 537 00:32:58,230 --> 00:32:59,940 schedule a free consultation with me. 538 00:32:59,940 --> 00:33:03,570 I'll take you through a short assessment and we can see how The Infinite Banking 539 00:33:03,570 --> 00:33:08,220 Concept might benefit you, and if so, what the next best step you can take. 540 00:33:08,580 --> 00:33:09,450 See you on the next one.