Velocity Banking Case Study

Foreign.

Hello, Hello. Good evening, good evening, good evening, welcome. God bless you. If you're in the house, if you can hear me nice and clearly, let me know in the comments below. If you're here watching live, comment below. If it's your first time here, comment. Let's get some engagement going. Let me know that you're ready to get this show on the road. Okay, Because I'm pretty excited. I feel like I got some magic fingers ready to get into this live case study. So I'm super excited. For those of you who are brand new to this channel, my name is Denzel Rodriguez, your personal finance geek of the 2020 1st century. On this channel we cover the velocity banking concept, Infinite Banking, Kingdom authority, and a couple of other subsections as well that go within that. But those are the three main pillars, Velocity Banking, Infinite Banking, and Kingdom Authority. In today's lesson, we're going to be discussing a real life velocity banking case study from the very beginning to current date. We are in September of 2021 getting ready to close out the month. So what I'd like to do is give you guys, we're gonna go over the four major numbers from when I first started working with this client on the board and then I'm gonna fast forward to you today, current numbers, where we're sitting, where we're at, progress that has been made and then next steps that we're going to do. And I want to do my very best to make this very interactive where I ask you guys some questions, get your brains working to see what kind of ideas you come up with to help me help this person move forward in their financial journey. So I will say that what we're dealing with on the board is a husband and wife.

Okay?

So we got two incomes that we're dealing with. Both are on the same page when it comes to these advanced strategies such as velocity banking. Prior to meeting me, I believe they were in the, the debt snowball. They already had the mindset of wanting to pay off debt. They had very good numbers to begin with. So we weren't, there weren't the issues of low cash flow, bad credit, mismanagement of funds. We didn't have any of those pre game basic level financial issues. We're dealing with a husband and wife, a couple that have the basics down packed, pretty disciplined, just looking to take it to the next level. And so they made that transition from traditional way of paying off debt to now adding a little velocity to the equation. I would, I would say that they have really understood have practice, implemented the concept successfully. It's been over a year. Okay, and let's see. Anything else I can share? They've just been a fantastic client. They've been getting results. They've had setbacks. Okay. So it hasn't been so pretty all the way through. They became a client during the beginning of the pandemic. I think they were following me prior to Covid. So they've done the work. They know their numbers. We're dealing with a couple that really understands where they're at and where they want to go. Their main goal currently is to continue to accelerate debt. That is still the priority. We're going to get to a point where that may shift. But until then, it's my job to help them in the area that they want to succeed in, not the area that I want to succeed in. Because some. Some of the ideas that I might bring to the table may not be in alignment with some of you watching. With some of my clients, new people, long clients that have been with me for a while, everybody varies. So when I'm working with clients, my job primarily is to present the options, provide as much transparency as possible, and say, look, if we go this route, this can occur. If we go this route, this can occur. But also this can occur. And if we go right in the middle, we get a best of the both worlds.

Okay?

So that's typically, like, how I like to present things. So with that being said, let me take a look at some of the comments. Let me see who's in the house. We got Roberto. How you doing? Good evening. Hello. Hello. First time. Wonderful. How you doing? Timbo. Tim, how you doing? Roberto hears me loud and clear. Great. Gerardo, first time. Welcome, Emily. Hello. How are you? God bless you. Kobe, how you doing? Says, this is my first time on your channel, so I might have just popped up on this guy's feet, you know, under the. Under the live. So that's pretty cool. Veronica says hello. Rodney, how you doing? Tanisha, how you doing? From North Carolina. Mark, how's it going? Carmen. Hello. Hello. We got Brittany in the house. Brittany Green. Some of you guys know who that is. Welcome, welcome. Thanks for being here, Brittany. Appreciate your support. Corey, how you doing?

All right. Great.

So 30, 35 people in the house, and I'm assuming that number will start to go up as we dive right into it. So are you ready? Let's get into the meat and potatoes.

Okay.

Let's get into the meat and potatoes. It's going to be fun. So like I said, we are dealing with husband and wife. Originally they became a client July 16, 2020. Couple months after the pandemic, they enlisted, they enrolled in the kingdom.

Okay.

In my kingdom. This is a lifetime journey that I'm, that this person is on with me. So I'm going to be working with their finances till one of us passes away. That's the deal. That was the terms and agreements when they enrolled in my program.

Okay.

Income. When they originally came to me, they were rocking at around $12,448.28. Expenses were $9,236.57. Total debt $448,842.31. Cash flow very nice. $3,211. This is July 2020.

Okay.

By September ish, I believe is when they obtained their very first debt tool, a home equity line of credit in the second position for $23,000. And they got an intro rate for 12 months at 2.49%. That was the intro rate. Fast forward over a year later, income as you notice actually dropped down to $9,696.84. Expenses also dropped. Debt was paid off. Different things that they removed out of their lives to increase cash flow. 7736.74 total debt removed from 448. Now they're down to 406. 938 86. Cash flow nearly cut in half. 1960 with 10 cents. $1960.10. This is where we are at as of September 2021. They still have the same debt tool, Home equity line of credit in second position. 23,000. And the rate is now 3.25%. So it went up. They had an intro rate like I said for 12 months. 2.49% that expired. Now they're at 3.25%. So this is the new borrowing cost that we have. They currently owe $12,618.78 on the HELOC itself where we already did a chunk two months back from September. So a couple months back already made a chunk. Now they're in the process of velocity banking, paying down the line of credit so that we can prepare ourselves to make that next chunk. Prior to meeting me they were around 700 credit score. They've now risen to roughly 768. So they're doing good in that department. In addition to using their main debt tool heloc, they are also running bills through a credit card where they receive 2% cash back rewards based on the Latest numbers that they given me roughly 1700, maybe as high as two grand. But this is the exact number that they gave me. $1,757.64 are bills that come from this 7,000 that can be paid with a credit card and they receive 2% cash back rewards. Like I said, this number is not totally accurate. It was just what was on the spreadsheet. It can vary. It can go up, maybe go down a little bit. That's typically what happens. Eventually you get very good where you try to pretty much run almost anything and everything you can through credit cards to maximize on cashback rewards. So they're sitting at 2%. Take that times it by 2. The number you're gonna get $35 roughly on average is what they are getting back to offset our borrowing costs when we're doing velocity banking. Okay, here are all the debts that they have. They got a mortgage 305,000 current balance mortgage payment 2002 20. Interest rate 3.75%. We got three different credit cards. One of them is on 0% for the next six months. 2,204 53 is the balance they're currently paying. $375 a month. That is not the minimum monthly payment. That is what they're choosing to pay to have this zeroed out by before the thing expires. Credit card expires following card 8947.77 monthly payment 228. That is the minimum payment balance. Interest rates at 8.99%. And the third credit card we owe 10,679 11216 is the monthly payment. 5.99% is the interest rate. We've got a 401k loan for 35,000 bucks monthly payment. I think she gets paid biweekly. So it's divided into two but comes out to $323.33 a month. And this comes out of the income, not the cash flow.

Okay.

So once this were to get removed, the income will actually go up along with the cash flow. I just want to make that clear. So 323 5.25% and then finally a loan for $31,717.63 is a personal loan. Monthly payment 1071 $0.22. Interest rate 15.43%. Now that we have gone through all the most important numbers and figures, I gave you the background story of the person, the client and what their goals are here. We're going to go step by step in terms of us actually doing the concept, all the intricate parts that are in play. I can illustrate it for you. Feel free to ask questions. Whether it pertains to the topic or not. You're going to want to get your questions in early so that when I'm done, I go back, I scroll back up to the top, and I will start reading your questions all the way through. All right, so here's what I'm going to do to create room for error in my favor when it comes to the numbers. Like I said, we're in the month of September. I spoke to this client a few days ago. I am going to act as if we're in the month of October with the current balance owed of 12,618 78. And I'm going to act like I'm receiving my income for that month, not including whatever cash flow remains for the month of September. So no matter what, these numbers are going to be inflated. So they're going to be inaccurate to a degree because I'm creating room for error to say, look, worst case scenario by X and X date will be at this. This is when we should make our next chunk. Then what happens is the client goes and do that. They do the concept, and they actually beat Denzel's numbers. Builds up their confidence. They're moving even faster, and they're getting greater results, builds momentum. Okay, so we're gonna pretend like we're in October, where we're gonna get a new income of $9,696.84. And to explain. Hey, Denzel, what the heck happened? They went from 12 down to 96. What happened was husband either left his career. I don't think he got fired. Maybe he was let go of the pandemic. I'm not sure. But husband was out of work for quite a period of time, and he's just now getting back into the rhythm of working. So we can expect she expects that his income is actually going to rise while doing velocity banking, which is also going to create room for error in her favor where we're going to go faster. Again, I'm using these numbers where they're currently at and projecting maybe the next year looking forward. But I can assure you that between husband and wife, these people, they've got good careers. Wife is a software developer. Husband is a business analyst. So they've got solid careers. He made a transition. If I'm not mistaken, they are investing in real estate or will be. That is one of their goals. So they're looking pretty good. Also on the Other hand, in terms of like background numbers, you know, yes, they do have savings, they've got some investments. We're strictly looking at four major numbers and not pulling from anywhere else to accelerate the concept. We've already maximized in terms of their, the way that they live, the way they operate. We're not being too minimalistic on that approach. They're operating within their means, producing positive cash flow and just maximizing every dollar. So I want to lay that out as well. Okay, so let's take a look. We're in October. Let's just say income comes in lands where? In the checking account. Where is that checking account? When I'm doing velocity banking, ideally that checking account, I want it at the same bank where I have my debt tool. So where they got their home equity line of credit, Second position checking account, linked to the heloc. Denzel, what does linked mean? I hear you say that all the time. Just simply means that they're at the same location at the same bank. And I can make very convenient easy transfers to and from the accounts. I log onto the mobile app, I can see my heloc, I can see my savings account, I can see my checking account, I can make an easy transfer, yada yada. There's nothing to it. Okay, don't get hooked up on the terminology. Just understand the principles and the rules that go with it. Okay, so they've got their checking account at the same bank. Money comes in, where does it go? The minute money hits my checking account, where does it go? I make a direct transfer is a word payment to the heloc. I have a couple of different options. When we're playing around with home equity lines of credit, we can make principal only payments, we can make interest only payments, we can make principal plus interest payments. In this particular case, we're dealing with a heloc, that is principal and interest payments. So what that means is I owe 12,618 78 if I make a payment on October 1st.

Okay.

And I owed 12,618 78 for say, seven days. Okay, let's do the math together. Let's say for seven days, you owed $12,618 on the HELOC for seven days. Take that number, balance owed, times it by what, 3.25%. You get $410. That's the amount of interest that I'll pay over 12 months. Over 12 months. Okay, so we take the number divided by 365. I'm paying roughly $1.12 cents per day. For however long, I owe 12,618 78. Take the 112 times it by seven days, I will owe on October 1st. If I made a payment on October 1st, I'm going to make a lump sum payment of the income that landed in my checking account. I move it to the HELOC. I pay what I pay $7 roughly, and $0.86 in interest. The rest, all principal.

Okay?

Peanuts, small. The interest compounds daily based off the balance owed.

Okay.

Every time the balance goes up, goes down, the interest gets recalculated based on the balance owed from day to day. When we say simple interest daily compounded, that can mean two different things sometimes. Majority of the times. Of all the situations I've been in so far with dealing with clients that have HELOCs, it is charged daily. But the number that I'm getting charged does not compound on the number itself. It just simply adds ads. Adds ads. Okay, so let's break that down so you truly understand what I'm getting at and what to avoid. Okay, so if I said that we're getting charged $1 and 12 cents for however long, I owe 1261878 on Monday, boom. I pay 112 on Tuesday. I pay 112 on Wednesday, pay 112, Thursday, pay 112, that number does not change. Technically speaking, this is compounding because by the time you make the payment, you add it all up. That's what you pay in interest. Another version of compounding occurs with your credit cards. This is why credit card debt can become very difficult to pay off when you're just making extra payments, payments over a period of time, or just regular payments for that matter. I can't tell you how many clients I deal with that just pay monthly minimum payments on their credit cards. And they don't realize that they're getting eaten up alive. Which is why it'll say, hey, It'll take you 16 years to pay this off, 12 years to pay this off. If you just pay the monthly minimum payment on the credit card itself.

Okay?

So unlike a credit card, when I get charged interest, they're charging me daily compounded interest. Let's say it was the same number I owed on a credit card, 12,618 78. Today I'll owe $1.12. Here's what they do. They take that 112, they add it to the 12, 618-78-times 3.25%.

Okay?

The number goes up ever so slightly. Okay, so the next day, now you owe $1.13 the next day $1.15 the next day $1.17. This is Daily interest compound. Same terminology. This is where it gets confusing sometimes, but this occurs with your credit cards typically not with your HELOC or your P lock or your all in one loan or your high cash value life insurance policy. Not the case. It's just simple interest daily compounding for the. This way, this way. We don't want. So this is why I'm very careful with people that want to be doing velocity banking with credit cards. The way you get around this, here's where credit cards becomes lovely is you don't actually get charged this on a daily basis. You get charged this on the what the due date.

Okay.

This is where these two when married together, HELOC credit card, P lock credit card, high cash value life insurance credit card, all in one loan credit card. When you marry them together, oh, we get to do some serious damage. So if I owe money on a credit card, I'm not getting charged interest until the due date. That's usually roughly 25 days after, after you initially enroll the card. 25, roughly 30 days.

Right.

Runs on a cycle. So as long as I pay the balance before the due date in full, I get charged 0, 0, zilch, nada, 0 interest. With a home equity line of credit, with a P Lock, no matter what, whether you paid it on Monday, Tuesday, Wednesday, Thursday, Friday, no matter what day you pay it, however long you owed money, you're going to pay interest.

Okay?

That's how they charge us. So what we're doing in the velocity banking world, we're taking advantage of both. We're figuring out a debt that I can consolidate, move transfer from higher rates to a lower rate. And then on top of that, to offset the cost of this, we take bills that can be paid with a credit card bomb. We run it through the card for those 30 days, get charged nothing in interest. We're getting cash back rewards, we're being incentivized, we're getting a thank you from the credit institution because they make money when we do not pay the bill on time. They get right, they make a profit for the interest, but they also make money when you use the card because the business that you swipe the card at charges a merchant processing fee.

Okay.

So the fees are from the business owner, you as the customer are being incentivized to use their card. So those institutions are making money in multiple different ways. What we're simply doing is taking advantage of the incentive and putting it in our favor. Got it. So while we owe money on the heloc, we know we're going to pay interest on that. There is going to be some borrowing costs. Our goal is to offset that. We use the card, get those 2%. Roughly 35 bucks. That 35 bucks is going to offset whatever my borrowing cost is on the what? The heloc. In addition, whatever the heck I moved onto, the HELOC is also going to save me money on interest of whatever debt I knocked out that I completely got rid of. Plus that payment that I was making to that other institution I'm now making back to my home. The equity in my home, paying myself back, brings my borrowing costs tanada to zilch zero.

Okay.

How you feeling so far, guys? Liking this. Drop a comment below. Let me know you're with me if I lost you. You like Denzel. You lost me. Repeat that. Say it again. Okay, let me know. Dada. Kj still listening. Learning from you. Okay, first time. Cool, cool, cool. I don't see any activity in the chat room. All right, you guys are focused. You're taking notes. It's what I like to see. So now let's run some numbers. 5012-6-1-8. We already determined that per day was A dollar and twelve cents. Let's do 12,618 78. And let's minus income. 9,696.84 brings it down to 2,921 94. The balance on my HELOC would go as low as down to that point over a period of 30 days. It may not ever hit that technically, because by the time you put money in, what's happening? Money's coming out. To do what? To pay bills. So that may not happen. All we're doing is trying to get a range, determine what that average cost is likely to be likely to be. Okay, so 2009. 2,194. Times that by 3.25%. Boom. Divided by 365. Bomb 26 cents a day for however long I owe on that amount. Okay, great. So we did. We know what our original balance was. We know what the lowest balance can be in the month. And then we add expenses. 7736. 74. The balance should round out somewhere around $10,658.68. Times that by 3.25% divided by 365.94. Okay, we've got three distinct numbers. Highest balance, lowest balance, ending balance. These are the three numbers that you'll do on Your own velocity banking situation from month to month to determine what my borrowing cost will be before I make the chunk so we can measure. Does this make sense or is it better for me to do Debt Snowball? Remember, we're always using Debt Snowball, maybe even Debt Avalanche as our measuring stick to determine whether or not velocity banking works in our favor. Highest balance, lowest balance, Ending balance. Add the 3, divide by 3. Add the 3, divide by three. My average cost of borrowing per day, roughly 77 cents. Times that by 30 days. $23.29. Not bad at all. I made a mistake here. $23.29 is my borrowing cost when using the velocity banking on a HELOC in combination with a credit card. $23.29. Now what Also happened in that month of October?

Right.

We made $35.15 in cash back rewards. So what is my borrowing cost, ladies and gentlemen? $35.15 -23.29 $11.86. Positivo. Positivo. Oye mira. Pay attention. What's my borrowing cost? Zero. Nada, Zilch, Nothing. Numeral zero. Done. This is the best case scenario when you're doing velocity banking is your borrowing cost is nothing zero. You actually come out ahead. Beautiful position to be in. So therefore if my borrowing cost is zero and the goal is to pay off debt and your measurement stick is dead. Snowball, we know that. Any other method you apply to this minimalism? Get a side gig, side hustle, sell your stuff, be frugal, cut back. These are all external things to enhance your debt payoff timeline. Would you agree with that? Those are all external. Regardless of the main concept, those are external that adjust these numbers, not the debt numbers. They adjust the four major numbers. We can all agree with that. So put all of the external ways to pay down debt faster and just focus on the numbers at play and the debts. If I were to do debt snowball, making extra payments of 1,960:10 towards my smallest debt, which would be what the 2,204:53. That's according to Debt Snowball. Why on earth would I do that if I'm getting charged 0% for the next six months? Okay, that's a dilemma. Number one for me. So right away, if you were to do debt snowball with the same exact numbers as me, following the baby step rules, following Debt Snowball rules, smallest to highest debt, you have to pay this first to 220453.

Right?

You have to pay that. If you're doing debt snowball. I'm paying a debt that is charging me interest, therefore I go faster than you. This is where Debt Avalanche comes into play. Okay, Debt Avalanche says highest interest debt first. What is that on the board.

Right here?

15.43% payments. 1,000 bucks. We owe 31,000. So I take the 1960 10, and for the next X amount of months, I'm going to pay an extra 1900 towards this $31,000 debt. That's what Debt Avalanche says to do. What's the problem with that? Well, it's not really a problem. It's going to get results whether you do snowball, avalanche, velocity banking. Question is, which one is more efficient? Efficient doesn't always necessarily mean that I'm gonna pay it off faster. Doesn't always necessarily mean that. But in my eyes, efficiency means fastest in my eyes. But I can understand how this can be very confusing to an individual. So therefore, what happens to velocity banking if this stuff flies over your head, if you just can't get it? No matter how many times I watch Denzel's videos, it's just too confusing. This is no longer efficient. So therefore you would want to do a snowball. That means you don't. You close your eyes to interest rates, you close your eyes to cash flow, you close your eyes to income opportunity. You close your eyes to everything. And all you focus on is the smallest debt and you work your way up and you create momentum. That might be efficient for some people, right? But that doesn't necessarily mean that they're going to go, what? Faster than if we were just judging the numbers. But when you add the human factor of an individual that's undisciplined, does not have a good track record of saving, has been in debt all their lives. Mom and dad was in debt all their lives. Grandma and grandpa was in debt all their lives. They got a whole generation, multiple generations of debt. That's all they know is debt and borrowing. All they know is being a debt tour, not a lender.

Right?

All they know is being in debt, the borrower. But they know nothing of being lender. They know nothing of that language. Well, then this would be inefficient. They would not go as fast, no matter how good the numbers show. They would not go that fast. They would fail. Why? They don't have the culture yet. Maybe the culture of the kingdom, maybe the culture of good money saving habits, maybe the culture of increasing income, maybe the culture of crisis versus opportunity. Did you know that the word crisis to the Chinese means opportunity versus Americans? When you look at the news. Says, crisis, crisis, crisis, crisis, crisis. To us, that means danger, danger, danger, danger, go away, go away. It's all bad, it's all bad. Danger, danger, go away, it's all bad. That's how Americans view crisis. The Chinese people, crisis. Opportunity, opportunity, opportunity, opportunity. Oh, it's a different culture. So you have to understand who you're dealing with. For my financial coaches watching, consultants, people that are looking to implement velocity banking in your practice, sometimes you got to put the numbers aside and really identify, who am I looking at right now? What culture does my client have? What is their track record when it comes to money? Have they saved consistently? Have they invested consistently? Have they paid their tithes? Give consistently? Do they just give consistently to an organization, to a business? Like, what have they done consistently with their finances that have created some sort of success? And we measure that. You say, okay, well, based on that, I like what you're doing there, Sue, I like what you're doing there. Tom, Joe, Mary, I like it, I like it. Here we're going to implement this concept right here that can potentially produce some results.

Okay?

So I need to give you guys that other feedback there, that other important information. Take away the human factor, take away the person here on the board. Take away the emotion, take away your feelings. Just look at the numbers. You could say, well, if my borrowing cost is zero and I actually make money on the process of paying off debt, then no matter what, velocity banking goes faster. For this period of time, in this very moment, velocity banking goes faster than debt snowball, debt avalanche. If we get the okay, green light on that, we say, yep, let's keep it going. Let's continue to do velocity banking. So with that being said, your most expensive month of borrowing cost when you're doing velocity banking is the month that you make your first chunk, which is the month that you chunking, meaning take money out of the line of credit. So this couple here, they chunked two months prior to September, right? Two, three months prior. So that means their most expensive month has already passed. They're roughly three, maybe four months in, if that. Now they're at 23, 29. They're going to pay that interest, right? They're paying that, but they made 35, so they net 1186. This whole 35 total can go into the expenses to bring the credit card that they ran up a balance back to zero that much faster. What does that also do, ladies and gentlemen? If I go that route, that means less money has to come out of the line of credit. Credit When I pay bills. So the longer I keep my 969684 in the HELOC, the lower my borrowing cost goes. If I'm running a lot of bills through the credit card, and on top of that, I reroute the cash back rewards to pay the card off by $35.15, then only 17 $20 needs to come out of the line of credit to pay that bill. And I only pull it out when on the due date of the card or say to be saved the day before.

Right.

So now you're wondering, well, Denzel, how does it work once we dump all our income in how much money do we know? Or should we be pulling out? Should we be pulling money out every day, every week? What's the most efficient way to do that? Well, there's a couple of ways, depending on the type of debt tool that you have. So just specifically looking at this specific home equity line of credit with no withdrawal limits, no transaction limits, I can take as much out as I want. I can put as much as I want inside. No limitations. Now that we understand that best time, or I should say most effective way to pull money out of the HELOC throughout the month to pay your bills is either going to be a daily. That's like truly maximizing it more efficiently, in my opinion. Three to five days. Every three to five days, money would come out of the HELOC to cover bills and expenses that cannot be paid with a credit card.

Right.

So all of these monthly payments cannot be paid with a credit card. The 2000-3752-2821-6323 thousand bucks cannot be paid with a credit card.

Okay.

So bills that cannot be paid with a credit card. Every three to five days, I pull out a lump sum of cash back to what? The checking account that was linked to the heloc. Your checking account continues to pay bills just like you were doing before. Rest of your income sits there in the heloc, covers the payment of the HELOC itself. So therefore, there's no payment on the HELOC. This 12,618 78. There's no payment. My payment was my paycheck. When I make the payment to the HELOC via my paycheck, damn near all of that is what Principal. Very little interest. Again, offsetting the interest. Hope I'm being very laser focused here this evening because I think a lot of people are getting confused and as you should be, because this isn't a culture most of us are used to. So you will be confused. And then there's a lot of content in the marketplace which can be very difficult to comprehend when you're learning from five, 10 different people. So while you're doing your research, be sure to eventually narrow your viewership to a few people, maybe five or less narrow it down so you can get honed in on a few ideas that you can implement to renew your culture, your way of thinking around money to better your situation.

Right.

So let's keep this going. We understand what's going on fully. I'm doing velocity banking on the heloc. I'm running bills through a credit card. I'm getting cash back rewards. My cost of borrowing is zero. I actually come out ahead. I'm making money while paying off debt. Another thing that we can do to enhance the strategy here is we can come back to this card right here, this credit card, and we can say, okay, what's the culture with this? I see a lot of people doing this. When I work with clients, they take the balance that's owed. When they leverage a credit card on 0%, they take the balance and they divide it by the amount of months that they have, zero interest, which is a noble strategy. It prevents what from occurring? It prevents you from forgetting to actually pay that bill off in time. So if you're that type of person that kind of forgets, you're like, oh, shoot, I got that credit card expiring next month. These credit card companies aren't exactly notifying you when your card expires. That's part of the game that they're playing. They're betting that you're going to forget because they gave you such a long time. 12 months, 18. 18 months, 21 months, 24 months, 30 months, or however long it goes. They do that on purpose, so you forget. Meanwhile, the interest is compounding daily. Stacking, stacking, stacking, stacking. Moment you forget, they now get to charge all that interest to your original balance that was damn near paid off, but you let it slip. So I can totally understand when people do this, when they take the balance they owed on a 0% card, they divide it by the amount of months that they have, zero interest. So in her case, roughly 375amonth is what she's paying for the next six months. Now, I told her, now that you're disciplined, husband and wife, very good with cash flow. You've paid off a ton of debt. You've been doing velocity banking for a year. Let's drop that method and let's practice efficiency. With every dollar, let's maximize our cash flow. Instead of paying 375amonth, you're just going to pay the monthly minimum payment of that card, which is probably anywhere from roughly 1 to 2% of the balance. So it's probably going to be like 50 bucks a month. Probably less than that.

Right.

Let's call it 50. 375 -50 is 325. I can reroute $325 back to the cash flow. Ladies and gentlemen. What occurs when I do that? Well, 7,736 74 minus 325. My expenses now drop to 7,411 74. Cash flow increases by the same amount of number 1960, 10 plus 325. Now I'm at 2,285. 10 cents. Oh, we're not. We didn't even pay off debt yet. All we did was reroute cash flow. Why? It doesn't cost me anything to keep this debt. In the velocity banking world, we're constantly looking for cash flow opportunity increases plus interest savings. Usually cash flow is critical. Interest savings second, balance third. Usually that's the order. Cash flow first, interest savings second, balance of the debt third. In that order is typically the case. Majority of the time, $325 of principal on a debt that is charging me interest. What happens, ladies and gentlemen? I go faster. I go faster. The dollars work harder for me. So now I only have 741174 coming out. 2285 stays in the HELOC. Again, I'm leaving room for error. So I went off of these numbers till about January of 2021. Income goes in, expenses come out. Balance is at what? 86 98. 58. December income goes in, expenses come out. Bomb. 6,738 48. January balance is at roughly 4,778. 38. If you were to take 325 times it by four months.

Right.

325 times four is 1300. So you could take 4,700 minus 1,300. The actual balance should be probably somewhere around $3,400. And then when you factor in the likelihood of their income returning back to this number over a period of time, let's just say it goes up a thousand bucks. Let's just say it goes up 500 bucks. 500 times 4 is 2 grand balance is nearly paid off. So I'm betting that anywhere between January And February of 2022 is when I make my next chunk.

All right.

Next chunk, the balance should be paid off. Zeroed out. If it's not zeroed out, it's very close to zero. Here is a situation where we don't necessarily have to wait for the HELOC to hit zero before making our next junk payment. Why, Denzel? Because since October, September of 2021, this tool, this debt, wasn't charging me any interest, although I owe money on it. Although I'm paying interest, I'm offsetting it, ladies and gentlemen. So therefore, I'm incentivized to leverage this debt. Zero cost borrowing from Peter. To pay the Pauls. To pay the Pauls, Paul's charging me 8.99, 5.99, 5.25, 15.43. Do you see that? Good stuff, good stuff, good stuff. All right, all right, comment below. Let me know your thoughts. Let's see some. Let's see who's got. Who's got some things to say. Angela, Gotcha so far. Timbo with you. Eric says great. Brings back memories of when you first started. The delivery is 100% better. No nervousness in your voice. Exuding confidence now. Thank you. True, Eric. Denzel is getting better and better, and all it's about is confidence, passion, coming together to make an enjoyable situation. Thank you. Thank you. Love the content. Dee Dee says. Hey, Denzel, your pal from Vegas checking in. Hello. Still killing our debt. Wonderful. God bless Dave. Sincere. Denzel's looking very seasoned in this case study. Like he's been doing this for decades. Thank you. Thank you, thank you. All right, you guys are enjoying this. I like that. I appreciate the good feedback. Makes me feel like I'm not just talking to a camera.

Right?

Really talking to you guys. I feel like I'm in your living room right now. That's what I feel like sometimes when I get these comments, I feel like I'm right in your living room live talking to you, directly to you.

Okay?

So let's keep it going. Let's think about it. Now, based off the numbers right here, we're not even going to factor in that we're making monthly payments on these debts.

Okay?

So that means come January, February of 2022, all of these debts are going to be lower. You agree, right? The mortgage, everything's going to be lower. We're not even going to factor that in. We're just going to look at what would be the next most ideal debt to tackle. I want you to think about that for a second and comment. My HELOCs at.0 3.2, 5%. We know what our rule is, right? We take the balance of the 23,000 times that by 66%. That's $15,180.

Okay.

For my seasoned subscribers, Kingdom citizens, clients, loyal subscribers, I want you to comment your thoughts. What is my next move? What are some things that I can potentially do to enhance this strategy for this client right here? We know the rule. Next chunk, 66%. We get it. 15,180. But I want you to pay attention to something. Look at their cash flow, look at their income. Remember the other rule that we do? We take cash flow times 12.

Right.

2,285. 10 times 12. 27,421. 20. Oh, we got a seasoned client right there. She already gets it. Increase the heloc. The heloc. Yes, yes, yes. That is exactly one thing that we want to do. We want to uppity up our credit limit. Why? Ladies and gentlemen, our numbers have improved, which means our debt tool needs to upgrade with the number so that we can continue to leverage our accordingly. She's at a point now where the HELOC is very small in comparison to her income and cash flow, which can potentially lead us to violating the rule of 66%. Right, that's a rule too. What rule allows me to violate the main rule? When your cash flow times 12 is more than 66% leverage, that's when we can chunk more than 66%. Does that make sense? So we're floating right here. New cash flow come January, February, 2022. Here's where we're at. A new cash flow. Haven't paid off any debt yet.

We're right here.

Velocity banking rule by denzel says chunk 15 grand. Should I just go that low? You could. Can I be more efficient? Absolutely.

Right.

So let's just look, let's see. Okay, we got 8,947, 77. All right, 8.99. We got that ten thousand dollar credit card. 1067-9.11. 19,000 62686.

Okay.

So we'll write that right here. 19,626 88. Now we know that those balances are going to be a little bit less, right? Because two 228 times month of October didn't even count. September, October, November, December, January, say February, five months, 1140. Okay, so 8, 9, 4, 7, 77 minus 11407807 77. Say add another $125 in interest. All right, probably more than that. Bounce will probably be somewhere around 8,000 come February.

Okay.

And you would do the same thing with each of the debts.

Right.

So I'm only going to do it once more with that other credit card comment below if you agree. Yeah, we should tackle the credit cards next, those two. And don't forget that little guy. It expires in six months. How long has it been over here? Four or five. So by March, if I'm not mistaken. March is when this card expires. If I'm not mistaken.

Right.

So you want to pay attention to that. Don't let that little guy fool you. Because we're no longer paying the monthly payment that she set. Paying the monthly minimum payment required to reroute that cash flow to pay off debt a little faster on the HELOC itself. Alright. That's why we got it done faster. So by the time this thing expires, we get rid of that. So would you agree that the next chunk should be towards these three credit cards? I don't see the value in tacking the 401k loan. That's at 5.25. That's lower than 5.99, 8.99 and whatever that rate goes up to, it'll be higher. I don't see the value in tackling the highest interest debt. The balance is too high. It's going to take too long. It's going to slow me down.

Right.

Hits my momentum. I can get access to cash flow much faster from here.

Right.

So I can potentially increase my cash flow by 216, 228, 50 bucks, $494. And then allow this payment to keep doing damage on this debt. You would agree that five months later, roughly January, February 2022, balance might be around 27,000, 28,000 maybe.

Right.

So it'll go down a couple thousand bucks. Let's make that next chunk increase cash flow the highest, the fastest. We're also saving money on what interest. I move 8.99 to 3.25, 5.99 to 3.25 and then whatever that rate would go up to down to 3.25. And then as you know, borrowing costs will get offset. So let's go off of the highest chunk likely to occur by January, February of 2022 just by adding the current numbers. But as you know, we're creating room for error. This is not actually going to be the case. 2,204 53894777 plus 10,679 11 the highest chunk. If I did not increase the HELOC which I would argue with this client. We should definitely apply for a credit limit increase. That should not be an issue. I don't think it would be a hard pull because this is revolving open ended. So I don't think we would have to go through a whole new application process. Maybe, maybe not. But we're going to get the details. We're going to find out. Okay, but let's say she didn't. The highest chunk would be 21,831 41 pays off three credit cards. What was the cash flow gain? 494. I think it was 494. 50 plus 228 plus 216. Okay, wonderful. We go from 494. Add the 228510 new cash flow number. What are we looking at? 200779 10. What's my new expense number? 7411 0.74 minus what? 494 expenses go down 6917 74. So now let's do the math. 21,008 3141. I am way overestimating. It's not even fair. But we're still going to run it to see does it make sense. And what would my borrowing cost be on that number? If this number ends up being good, can you imagine how much better the actual number is going to be? The actual chunk amount is probably going to be in the neighborhood of 18, maybe 19,000. The actual number to pay off those three cards four or five months from now. So let's just go off that. 21,831, 4 1. Do the same math times what? 3.25% divide by 365. We're doing this all over again.

Ready?

$1.94 is that borrowing costs minus income? 9,000. Oops. 9,006 96 84. That's income expenses coming out. 691774 guys are with me. Comment below. This is good, Denzel. Keep it going. If you got lost in the sauce, let us know. Someone in the comments will help you along the way so you don't get lost.

Okay.

21,831 41 minus 9696 84. That's the lowest. What? Highest 21. Lowest 121213 4. That's what the balance goes down to when you minus income.

Right.

121345 SIB times 3.25% divided by 365. 108. Liking this, liking this comment below. Let me know. Denzel I like it. Give me some more. Okay, I'll give you some more. 12,134 57 plus expenses going out. 6917 74. Balance goes back up. Ending balance February 2022. 19,005 231. Balance February 2022 times 3.25% divided by $365.69. Let's do the math. Add the three, divide by three. Add the three, divide by 3. $1.57 a day.

All right.

$57 a day on average is my cost. Max chunk to wipe out those three debts. Times that by 30 days. What's my borrowing cost, ladies and gentlemen? $47.16 month one minus $35.15 on average. What's my borrowing cost, class? $12 and 14 cents. Hallelujah. That is based off $21,000. If you were to minus it, I bet you do the numbers minus. Try to do the interest rates right. You take 228 times that by four or five months. 216 times that by four or five months dot 50 bucks times that by four or five months,. Minus those balances off of these numbers right here, you're going to get a net actual chunk amount.

Right.

And I'm getting so excited.

Hold on.

50 times 4.

Right? Right.

It was 228. Boom. 216. That's like a couple thousand bucks off of 21. So we realistically, that actual chunk was probably going to be $3,000 less.

Right.

If 21,000 highest balance ends up averaging me a net of $12 and a penny of interest.

Right.

$12 and a penny, then I'm pretty sure that we could actually bring the borrowing cost to probably $40. 35 where this actually becomes like zero.

Each.

Even if it did have borrowing costs, would you agree? I still go faster than debt snowball making extra payments. Debt avalanche. Yes or no comment. That let me know.

All right.

Is this good? This good stuff? This is what it takes. When you really look at your numbers, you're like, oh, my God.

All right, all right.

I'm getting excited. This is a possibility. So she now chunked in somewhere. June of 2021. We're in September 2021. We're bringing the chunk back down to zero by January. February of 2022 is what we projected. We're likely to make a chunk anywhere from as high as 21K, as low as probably 18.

Right.

Which is a little over 66%. I'm okay with that.

All right.

Balance nets out around 19,000 at its highest. My borrowing cost was $12. Major victory. We reroute 8.99, 5.99, whatever that interest rate would be, and we get a cash flow gain of 494. I solve for all three. Okay, now what else can we do to enhance this strategy for my seasoned clients? Anything else you see that I can add to the equation? Let me look back up here. All right, so after she said increase the HELOC, Emily says I do the 8, 9, 47 next chunk. Maybe stretch the rule. Do the 10k card too. Yes. Okay.

Yep.

We went over that. Cool. Possibly lower rate tool. Maybe she said increased mine to 50K. Went from 6% to 3.75. In this case, I don't think her rate would go down because she already got the approval of that intro rate and now they increase it to 3.25. Not sure if they would give her a brand new intro rate. Again, that would be pretty cool if that were the case. So Alex Chan says, you know, is with us. Pay off the three cards.

Yep.

Does the increase depend on the amount of equity you have? Absolutely, yes. Yeah, but understand, look how much utilization debt we wipe out. The mortgage is at 305 currently. Five months from now, it's going to be a little bit less Value of the home might have gone up, but also there's more equity than what's shown here. She's got a good amount of equity in her property that we can absolutely tap into.

Okay.

Most are only lending 75%. LTV credit union seem to be high some AI. Okay, is there a way to do velocity banking while I save? So what do you think we're doing here? Oh, pay attention. What do you think we're doing here? What do you think happens when we consolidate debt? What is the term for consolidating debt? To actually makes you what you. You save money. So you have to really analyze your numbers. Remember how I said earlier that this client has savings, has investments in other. Look, we're not touching none of that. We're just touching the four major numbers here. That's all we're touching at the moment. While we're doing velocity banking, you are saving. What, Monet.

Right.

When you shift the debt, you're saving money on all these interest rates. That money is savings. You're running bills through a credit card. You're saving money. We're offsetting. So we're saving. Absolutely. Just not traditionally saving the way you normally would when a crisis occurs in your finances. Where do I go? I now have four paid off credit cards that I can Access, possibly have 0% offers on purchases for the next 12 months. I've got a paid off HELOC, I've got space to use. Yes, the debt is lower so I put myself in a very, very good position without touching their pre existing savings.

Okay.

So yes, we can absolutely do velocity banking while saving. Imagine if this person's numbers, right, like they put 12,000 was their income, nine grand, 3,000. Let's say this is you son or daughter, right? Let's say this is you and you say your cash flow is $3200. But in your expenses you put that you save $300 a month. That's how we do our four major numbers is we include savings as an expense. That's money that goes away from velocity banking. So the 300 bucks, right, that could go over there. You could minus it off the income and then just do velocity banking off whatever numbers you want to work with. We could absolutely do that. It's a preference in terms of efficiency, maximization of cash flow. It may not do you a lot of justice to move savings in a bank account that's not earning you anything when we could have technically your own bank account. Savings bank account right here. Mind you. This is secure debt, this HELOC equity in her property. Yes. She's getting charged this interest rate, but isn't she appreciating in the value of her home as she's making regular monthly mortgage payments? Don't you see the net gain by not saving in a separate account, putting the savings in the home to do what? Zero cost of borrowing. I hope I'm getting to you. I hope I'm getting to you.

Okay, okay, okay, okay.

Let's see, let's see, let's see.

So.

HELOC is your new checking and savings account. Look at the big picture. Yes. Okay. Less debt is ultimately more savings and emergency fund, three to six months. Okay, cool. So we mentioned about what debts we're going to tackle the chunk. But I want to, I wanted to challenge you guys to think on what are some other ways that we can enhance what we're doing here.

Right.

So would you agree at this point in time, February 2022, if I wipe out three utilization debt accounts.

Right.

Gone. My credit score should go up, should be more powerful. I could potentially request apply for a credit card, 0% on what purchases, balance, transfer.

Right.

What would be a debt that remains? Just the mortgage, 401k loan and this personal loan. What would be a debt that you would Want to leverage a 0% credit card for say, 12 months? 0% on balance transfers and 0% balance transfer fee. So no cost of borrowing. Zero cost of borrowing. Zero, nada, zilch, nothing. What would be a debt that you guys would shift? How much, how little?

Right.

Let's say we got approved for, I don't know, say 15 to 20k. Very realistic. Again, use the same rule, 66% of the debt tool. Alex, love what you're saying. Monthly expenses paid annually. Absolutely. We could do that. Instead of paying off debt, we could potentially temporarily increase our cash flow by more than whatever the debt I'd be hitting. Now. That is a strategy. My friend Ishmael says the loan. Absolutely. That would definitely be the loan. I'd go after 15.43%. You mean to tell me that I could use a 0% credit card, maybe get approved for in the neighborhood of 15 to 20k? Use about maybe 10 to 13,000?

Right.

0%, 12 months balance transfer, 0% fee, 0 cost of borrowing. We could roughly wipe out almost 50% of the loan debt and put it over here for 12 months. It does not affect the payment. You still got to pay the 1071. But the 1071 at that point is mostly principal. You remove over 50% of the interest. That could be a wonderful move. Another move which Alex went over. Alex Chan said, you know, hey, move your monthly expenses, pay them up annually. I think that would be more valuable based on the leverage amount that I use. If I can get equal to cash flow gain of this debt. If I can do that, ladies and gentlemen, then let's say we went Alex's way and we use roughly 10 to 13k. 13k if I got approved for 20, 10k. If I got approved for 15. So 10 to 13k to cash flow gain of this debt. If I can do that, ladies and gentlemen, then let's say we went Alex's way and we use roughly 10 to 13k. 13k if I got approved for 2010k. If I got approved for 15. So 10 to 13k, zero cost. And let's say the cash flow increase was roughly 750 bucks to about $1,000.

Right.

That's zero cost. And let's say the cash flow increase was roughly 750 bucks to about $1,000.

Right.

That's very possible. When you switch from monthly to annual, you'd be surprised how much money we can recoup. This isn't permanent cash flow gain. This is temporary cash flow gain for, say, 12 months. That means I don't even touch that debt. I pay the monthly minimum payment on that debt. It's probably going to be anywhere from 100 to 200amonth. So if you, if you got a 750 cash flow gain, in reality, the net would be 650 or 550 cash flow gain. Does that make sense? Okay, then you take that cash flow from paying all your bills up for the year of 2020, 2022, which would be perfect timing, ladies and gentlemen, because you're at the top of the year. Perfect timing.

Right.

We're at the top of the year. I increase my cash flow immediately, while simultaneously I made that chunk. So now I've got roughly an additional 556, 50 or more of cash flow to the HELOC. What does that do to the HELOC? Makes my borrowing costs zero. I come out ahead. It also helps me pay off the HELOC faster, probably within four to six months. I got six months to spare over here, and then I can take those four. That last tail end of the zero percent. Four to six months. The last four to six months, I'll wipe out the loan. And now that's gone. Thousand bucks. Bomb, bomb, bomb, bomb. HELOCs now at zero prior to the credit card hitting expiration date. We either use the HELOC to pay off the card in full, or by that time, you might very well just have the cash on hand to wipe out the card. Okay, so we could go Alex's route, or we could go Ismael's route where we remove 50% or more of the interest, the payment stays the same, so there isn't going to be a cash flow gain necessarily, but it certainly helps us bring this HELOC as we bring the HELOC back down to zero from the. That following chunk in February of 2022 helps us pay off this loan in one shot and gives us just enough time to come back to that 0% card, wipe that out, and now everything is done except for the 401k loan and the mortgage. Okay, so let's keep it going. Let's say that from February 2022, and we'll go six months to be super conservative, but I can almost assure you she'll have it knocked out much faster. Right, but let's go six months, and we'll start in the month of March. We'll count March, not February, not the chunk month.

Right.

We'll go, we'll go further just to create some distance. So, 1, 2, 3, 4, 5. August of 2022. HELOC hits zero.

Right.

HELOC at zero paid off. If we went Alex's route, we still have a balance on the card and we still owe money on the loan. And let's say we got approved for that credit card in the month of February or maybe a little after. So we know that by 2023 of February or March is when that card would expire. So if I'm in August of 2022 and I went Alex's route of running bills, we don't worry about paying off the card come August. HELOCs at 0. You chunk at the loan, pay the loan off, you now get a thousand bucks, you reroute 15.43% to 3.25, which is actually zero in our case because we're not getting charged any interest whatsoever.

Right.

And we do velocity banking up until what? Either by February, when the card, when this card expires, or before. Done. If we went Ishmael's route, we use a portion of the credit card, knocks down the loan, same thing. By August 2022, HELOCs at zero. In fact, we would actually go faster. No, I'm sorry, that's a lie. We'll probably have it paid off around probably a little after. I'm sorry. We would actually have this paid off a little, maybe a little after, because we don't get the cash flow gain, we get the interest savings. So we don't really see that right away. So maybe we're in. Maybe it takes an extra month or 2, if that. September 2022, HELOC at 0. Whatever the loan balance is, the remainder, we wipe it out with the heloc, do velocity banking before the card expires, wipe it out, done at that point in time by at least February, March of 2023, the HELOC said 0. The loan is paid off, all cards are paid off. The only thing left is the mortgage and the 401k loan. And at that point in time, being super conservative, February, March of 2023, either A, we continue to pay off debt as long as the rate does not exceed 3.75 or 5.25, it'll continue to make sense to do velocity banking to pay off the remaining mortgage and the 401k loan. If the rate exceeds 3.75%, then it's only going to make sense for a period of time. Not that much longer. Okay, not that much longer. I left that comment on like crazy. And that was probably in the way of you guys. I'm so sorry. So we could potentially Shift our strategy in February, March of 2023, where instead of paying off debt, she could look at her debt and says, well, this is costing me 5.25%. But the interest I'm paying myself, the interest on my money that's growing in the account, so there's a bit of a wash there. My mortgage is at a 3.75%. The value of the home is probably growing 3 to 4%, maybe higher than that. So there's a bit of a wash there. I can then make the argument to say by 2023 or sooner, instead of paying off debt, I can get a higher rate of return on money if I choose to what? Invest. Either invest in something outside of myself in some type of asset class. I could go the IBC route, start a high cash value life insurance policy. That could be a route. Or I know with this particular client, they want to build a business so we could go the 10x route where we could continue to increase our income, that what remains of debt is the mortgage and the 401k loan. And if they come to a conclusion where the debt is not killing them, it doesn't hurt them whatsoever. Their cash flow is north of 3,000 or higher at that point, right after paying off the loan, 3,285 plus 4. 94. All right, so we're, we're like almost north of 4K cash flow, doing very well at that point, I could say, Well, I got $4,000 a month in cash flow, 4,000 times that by 12, $48,000 a year in free cash flow. What can I do? Can I take my cash flow times 12 per year and earn higher than 5.25 and 3.75 added together more than 8.75, more than 9%? Can I do that? Do I have it in me to either start a business and profit more than 10% in that business and create more income? Do I have the ability to invest in the stock market, in real estate, in crypto and gold and silver and all these other different, you know, investment opportunities and earn a higher rate of return than what my debt is charging me to create arbitrage? I mean, at that point, would you agree that this, this couple, this family is, is very disciplined with their money at that point, we're talking 2023. They've got two, three years of velocity banking in the books, managing their finances. They've created a new culture of how they view money. Do you see the evolution, how that occurs, how things improve? The more they pay attention to the numbers and Think of creative financial ways to produce more wealth, produce more income and leverage where we're not just borrowers, we're also lenders.

Right.

Most of the time here we're borrowing, but we're effective borrowers. In the 21st century, if I borrow at 0%, what is my loss? Nothing. So I'm actually going to go faster than the guy that does not borrow because when he or she borrows, they pay interest. When velocity banking students borrow, we don't pay interest. If we do pay interest, it's minuscule compared to what our measurement stick debt snowball debt avalanche created efficiency.

Right.

Good stuff, guys. Like it. How do you feel? Are you happy? Are you like, oh my God, that was a lot. Let me get your comments. Let me see how you guys are feeling so far. Ronnie says apply for more debt weapons. We can absolutely do that.

Right?

It depends on their capacity to handle debt. Remember that. So everybody's different. Convenient checks. Yep. That was through the balance transfer. Yes, yes, yes. Let's see. So we got 63 people in the house now. Wonderful, wonderful. Lesson is complete. I'm done. We looked as far out to 2023 for this particular client.

Right.

And we paid off in that time four credit cards, that $31,000 loan, and then we left the 401k and the mortgage.

Right.

Again, way overestimated. In reality, we could be very well in 2022.

Right.

Of all debts paid, cleared out, we could very well be there. So if we add up the numbers of the amount of debt that gets wiped out during this timeline, from September, September 2021 to roughly December 2022, we got that 12,618 that gets wiped out. That was the original previous chunk on the HELOC. We wipe out the 204 card, the 894 7.77, the 10,679, 11 and the 31,717.63, $66,000 over a roughly 13 to maybe 15 month period.

Right.

So let's write that down. 66,001, 6782. Not to mention the 323, 33 over a 15 month period. Now I understand a portion of this is interest, but it's still debt that she's tackling, is she not? It's still debt that she's tackling. And then the mortgage, 2002, 2020 times, say 15 months, another 33,003, add them all up. 4849.95 plus 66167.82 over $100,000 of debt, roughly 13, 15 month, maybe 17, 18 month period with the starting cash flow. Working with 19, 60, 10, going all the way up to roughly 4000. 4000 times, say 18 months is only 72 grand. But we didn't have cash flow 4 grand for those 15, 17, 18 months. It gradually increased. So do you see the difference between 104 and 72? That's called leverage. That's called recapturing dollars, recapturing interest. So we're able to have our principal dollars work so much stronger our favor. But the numbers have to make sense because not every time, 100% of the time is this going to work, not every time. We know that when it does work, it works beautifully. It has to work beautifully or relatively. Nice looking, good looking, you know, not okay, decent. Like we really want to create acceleration. If we can't achieve that, and we're also not good with the concept and we're not thinking of creative ways to improve our strategy, then it may not be the most efficient strategy. Therefore, bomb. We stick to that snowball, dead avalanche until you build the courage, the discipline, the attitude, the behaviors, the structure, the principles, the rules, the fundamentals, the studying to get to that point where you fill up my whiteboard. When you fill up my whiteboard, you're doing something right.

Right?

Any questions? How do you guys feel? Are you happy for this couple right here? You're like, yes. Oh, yeah. Got the hand claps. So many options once the debt is done. I know it can become very difficult to really, really choose. And I think it helps when you have someone to really dialogue with. Go back and forth, right? Look at content, get ideas to make the best decision for you to move forward. So I, I, I hear you, I hear you. I'm open for Q and A at this point. Didn't see any questions. I don't think I missed questions. I'm scrolling, I'm scrolling. Yeah, I didn't see nothing.

All.

Right, so I'll give you guys a couple more seconds. Ask, ask away. If not, I want to inform you of a couple of things I got going on. And you know what? I'm just gonna, I'm gonna erase some of the board here and I'll write it out, give you guys some updates as we close out, you know, because I want to make sure I've given you plenty of value to sleep on. Conduct yourselves right and move forward. This video will be available to watch on replay. I'll leave it open for you guys.

All right?

I just Want to give you some updates, some things that are occurring in the kingdom. All right, so first and foremost, I just want to give you guys a consistent travel schedule of conferences, business events that I will likely attend on a yearly basis. Likely, number one is probably maybe one event with Grant Cardone. He has something called the 10x growth conference.

Okay.

I will be going to that next year. That will likely be in South Florida. Probably Miami area is where that'll be. So that'll be in 2022. I'm definitely going there after that. I may not attend these events because they're not as intimate as I would like. Although I think he's getting ready to shift to more intimate type of events where there's more networking opportunities, you know, less pitching, just more so like, just delivering immense amount of value. So we'll see. The next is the Voltage Conference. I'll be attending that next year. That's likely going to be in the fall of 2022. And that is also going to be South Florida, more than likely. The other is Fincon 2022. I just went to my first one this year in Texas, so I have no idea where the other one's going to be. But they do go all over the US So that is to be determined in terms of the date that is also likely to be in the fall. These are the three main conferences, business workshops that you can find me. We can meet in person. I will typically fly in the day before, leave the day after, and I make myself very available to meet clients in person. So whether you're a client or not a client and you want to meet in person and I'm traveling, these are typically events that I'm going to consistently go to to grow my business. Those are the three main events. Anything else is probably going to be more focused for a particular business type of event. I do many virtual events and collaborations with other people. I'm open to speaking opportunities. So if you want me to speak at your church. I've done quite a few collaborations with churches at this point, so got a little bit of a rhythm built up in the church sector.

Okay.

So if there's any speaking opportunities, if you want me to speak, speak to your congregation, to your church, and present these strategies that are foreign in a very fundamental way. Beginner type of a, way more than happy to do that, especially if it's in a church type of a setting. I don't mind being charitable. My main thing is I just need my travel covered. Three meals a day, nice place to sleep. I prefer Hilton Okay, I'm a diamond member there, so take good care of me. I like to sit first class. I don't play around. I like to get my reclined seats. At this point I feel like I've earned it. And you know, convenience is my thing. So if you really want to treat me convenience, if you make it so convenient for me to collaborate with you at an event that makes my. That sits well in my heart, fills me up and I'm able to deliver that much better. I could go the IBC route, start a high cash value life insurance policy. That could be a route. Or I know with this particular client they want to build a business. So we could go the 10x route where we could continue to increase our income. What remains of debt is the mortgage and the 401k loan. And if they come to a conclusion where the debt is not killing them, it doesn't hurt them whatsoever. Their cash flow is north of 3,000 or higher at that point, right after paying off the loan. 3285 plus 4 94. Alright, so we're like almost north of 4k cash flow, doing very well. At that point I could say, Well, I got $4,000 a month in cash flow. 4,000 times that by 12 $48,000 a year in free cash flow. What can I do? Can I take my cash flow times 12 per year and earn higher than 5.25 and 3.75 added together more than 8.75, more than 9%. Can I do that? So I just want to put that on the table. The other thing is if you are a subscriber or an existing client, I am reopening my one to one coaching service.

Okay?

The only way to see that offer is you either have to be on my email newsletter, you have to be a subscriber, you have to or be a client. Because those are the only people that are being notified at the moment. I'm really only interested in working with people that really have built up some kind of relationship with me already. You're changing your methods, you're increasing your cash flow, you're doing the right things, you're doing the pregame work, you're watching the content, you're committed, you've built a know like and trust factor. So you're going to see those offers exclusive. I'm not just pretty promoting it to everyone and anyone for that matter. I'm looking to work with people that want to work with me because it is a long term offer. We're talking coaching from anywhere from seven to 10 years.

Okay.

In terms of one to one coaching.

Okay.

So the only way to see that offer, you have to be a client. I get a lot of people wanting to work with me one to one. And I want to work with people that have been in my community for a while. Maybe they didn't become a client yet, maybe they're working together, whatever it is. So I just want to share that with you. Let's see what else is going on on my website. What you will see is the one program that I have which, which is called the manifesto. And there's three pricing options. Got the 1999amonth, there's the 147 and then there's the 547 lifetime access.

Okay.

These prices are all going away by the end of the year. So I'm giving you ample notice. By December 31st I close the program because then I spend roughly three months or so focusing on those people that enrolled after December 31st gives me time to potentially talk to every single client. And I'm already doing that now with people who are enrolled on the monthly, the annual, the lifetime. If you were to lock in now, if you're not a client and you were to enroll, those prices roll over to next year. So you'll be grandfathered in. You're not going to get a, you know, randomly price increase on you. It'll stay in for however long you stay a member inside of my kingdom.

Okay.

Come December 31st the monthly option will increase to 47amonth. This will be no longer. This will be no longer. This is going to go to 547 and it'll just be an annual rate to be 47 bucks monthly or 547. Let's see, what's the savings on that? I forget. 47 times 12. Yeah. So couple bucks savings by paying it up in full for the year. That's just for the cost of the program. 547 does also come with a one hour call with me. And at this point this program has been running since March, April of 2019. So I've learned a lot so far, work with a lot of people, have been increasing my experience, my knowledge and I've been adding more things to the course. So it's not just an evergreen recorded course, it is pre recorded material that is evergreen. Multiple sections, over 150 hours of content. Very, very long course. You got to work at itself pace. So it's a very long course and there's multiple ways of learning because I've learned looking at the statistics of my existing clients that people learn very differently.

Right.

So some people learn very well through video, which is why you're watching me and not just reading a blog, you know, or listening to a podcast. Some you learn very well through video. Some learn very well through reading.

Right.

Some work very well. One to one, right? Where you just, you need that you need to be shown, you need to be handhold different. So the course has evolved where it handles most of the popular ways of learning, mostly the courses, video. As you watch the video content, you actually earn time with me one to one at no cost.

Okay.

My hourly rate is now 247. When I first started, I was 97 bucks. So my experience, my confidence, my value that I bring to the table has been increasing. And when you look at the marketplace, I also did some market research. Average financial expert coach will charge anywhere from 300 to $400 an hour. Do I have it in me do to either start a business and profit more than 10. This is market research that I've done on my own and also information that I learned from the Dave Ramsey community. So if you were to hire a Dave Ramsey certified financial coach, AKA myself, I'm Dave Ramsey certified as a financial coach. The average that percent in that business and create more income do I have the day charge is 300 to $400. And they're just teaching you the seven baby steps. Debt snowball and telling you that, you know, debt is bad, in my case247. And ability to invest in the stock market, in real estate, in crypto and gold and silk and all these other different, you know, investment opportunities and earn a higher rate of return. We're being very transparent. I'm offering you many different options, many different options, ways to go. I'm showing you each and every strategy mathematically to help you make the right decision for your life. So earned and what my debt is charging me to create arbitrage. I'm 50% cheaper than the competition, which at the moment, you're catching me at a very good time. Just like people that found me back in 2018, 2019. You got me at a time where I knew nothing about business. I knew nothing how to price my services. Over time, I've learned. So I've increased my rates, but I'm still extremely competitive because I do not consider myself. I mean, at that point, would you agree that this, this couple, this family is very dis and expert just yet? Although some of you call me that, you give me the guru, the expert title with their Money at that point, point, we're talking 2023. They've got two, three years of velocity banking. And I love it and I respect you for it and I honor you and I will live up to that title. But at the moment, I'm projecting to become an expert by mid summer 2024. By that time, according to the amount of hours, actually working with clients will be roughly 10,000 hours. And at that point in the books, managing their finances, they've created a new. I'm going to be very comfortable calling myself an expert on these topics, these concepts. And then I will charge in the roughly in the neighborhood of 300 to $400 an hour. So in the meantime, you're getting me at a very, very good opportunity for those that are like wanting to take that journey. You're like, yep, you know what, I'm ready to dive into this. I, I want that, I want that long term relationship. So in this course at the moment, the manifesto, that's what is currently available, right? Once you enroll and you've been in the course for a little bit over time, you'll see the one to one coaching offer that I have, which is pure me, one to one. In addition to all this stuff, you're getting me one to one for the next seven to 10 years. And that's a different price, that's a different service. Again, I'm only offering that to people who are in the course or people who have been on my email newsletter for quite some time. You guys are gonna be the first to see that. Some of you who are watching have already seen it, some of you have already enrolled. And so I'm keeping those space culture of how they view money. Do you see the, the evolution, how that occurs, how things improve the more they pay attention to the, to the numbers and think of creative financial ways. This is open for just the committed ones because I find the success rate to be way more impactful. I don't have to worry about doing refunds. I don't have to worry about, oh, I didn't know this and I didn't know that. I can be very clear, patient with everyone and I don't have to really sell you. You just when you're ready. Students, ready. Teacher appears. Okay, I'm the teacher, you're the student in this case for the time being. And then over time you can teach me some things because you're going to get to a point where you become self sufficient, where you used to produce more wealth, produce more income and leverage. You do not need me that is the goal of my program, my courses and how I were not just borrowers, we're also lenders, right? Most of the time here we're borrowing, but we're effective borrowers in the 20 operate. I operate in a way where you do not need me. After a certain period of time, you become so self sufficient that you get to run your kingdom like a king, like a queen in your own right. And then I get to come to your kingdom as another king. And I get first century. If I borrow at zero percent, what is my loss to see your glory? And I get to look around and say, oh wow. Oh wow, the Georges. Oh wow, the Robinsons. Wow, what a nice kingdom. That looks like a queen. Yep. Oh yeah, he looks like a king. Yeah, yeah, I like that. Nothing. So I'm actually. Oh wow, look, look. Look at that car. Look at that house. Look at that, look at that big long acreage land that they got. Look at those stocks they got. Wow, look at the way their kids operate. My goodness, what a culture that is. Dang, those kids got work ethic. Gonna go faster than the guy that does not borrow. Because when he or she borrows, they pay interest. When velocity banking students bar, they don't have to. They don't even got to look with the eye to tell their kids what to do. They just know there's a culture. Those kids don't waste money, they make money. Those kids don't waste time, they create time for opportunities. They don't look at crisis as danger, they look at Carl. We don't pay interest. If we do pay interest, it's minuscule compared to what our measurement stick debt snowball dead avalanche prices as opportunities. What a kingdom to be a part of. So that is my end goal. That's why I like to work with people for a very long period of time. Because I'm not interested in one off. I'm not interested in, you know, let's have a. You know, I want to pick your brain. I'm not interested people picking my brain. I want you to unpack my entire created efficiency, right? Good stuff brain. And take out every piece of wisdom, every piece of information that the father is implanting, downloading into my brain. And I want to be able to transfer all of that to you. So guys like it. How do you feel? Are you happy? Are you like oh my. That I can go live my life as well? Because I got a life too, you know, I have a wonderful girlfriend, a God. That was a lot. Let me get your comments. Let me see how you guys are feeling so far? A wonderful family. I have wonderful clients, got wonderful friends. And I want to experience things. Rodney says apply for more debt weapons. We can absolutely do that. Ings. But I don't want to have experiences alone at the top of the mountain when I'm rich and lonely. I don't want that. I want to have a community of kingdom citizens, kings and queens, where I can just. I can just walk into your lands. Oh, wow. Oh, yeah. Pull the pool table up. Yeah.

Right.

It depends on their capacity to handle debt.

Remember that.

So everybody's different. Convenient checks. Yep. That was through the balance transfer. Yes. Yes.

Mm.

Get the cigars, get the drinks, get the hors d' oeuvres and the food. Let's get this music pumping.

Right?

I love to dance. I love good food. I like a good guess. Let's see. So we got 63 people drink here and there. Don't get me tipsy. You're going to see a different side of Denzel. Don't get me tipsy. Because then I start dancing. You know, I say, oh, you know, I start. My goodness. You know, I start getting groovy with it. So watch out. But with that being said, any questions at all? What's going on? We got 51 people in the house. Thank you so much for this superb example. Great job.

Great.

Only debt is car loan. 18%, 3.5%. But I have a P lock 20,000 9%. I can lower P lock. I can lower the personal line of credit to 6% with a hard pull limit increase. I like the idea of that. What I don't like is your only Debt is the 18,000 at 3.5%, but you have a P lock at 9, even though if you brought it to 6, it may not be of value to do velocity banking. In fact, I'm pretty. I'm willing to bet that that will not be a good velocity banking strategy to use that P lock to pay off the car. See, not all the time. I can just tell right away. Too. Too big of a. Of a difference in interest. 3.5% even if it's amortized.

Right.

You're probably on the tail end of that car loan. 18,000. Maybe you started off when it was at 36,000, maybe 40,000, 45,000. I don't love it. So you might be better off what that snowball. Just make extra payments towards the thing and be done with it. You might be better off getting. Instead of increasing the P lock from. From a 9% rate lowering to 6% rate with a hard pull limit increase. Instead of that, you might be better off getting a 0% credit card on balance transfers and 0% on balance transfer fee and move the whole 18,000 if you own the house now. Wonderful, wonderful. Get approved for that much to the card. To the card, the credit card, at no cost. Pay the monthly minimum payment. Lesson is complete. I'm done. We looked as far out to 2023 for this particular client, Right. And we paid off in that time. Stack up your cash flow by the time the card expires, boom, paid off in full, you're done.

Right.

That would be the only way that makes sense to me in my opinion. Kenny says love the vision. Love the vision. Just a general statement, four credit cards, that $31,000 loan, and then we left the 401k and the mortgage.

Right.

Again, way overestimated. In reality, we could be very well in 2022.

Right.

Of all debts paid, cleared out, we could very well be there. So if we add up the numbers of the amount of debt that gets wiped out during this timeline, from September 2021 to roughly December 2022, we got that 12,618 that gets wiped out. That was the original previous chunk on the HELOC. We wipe out the 204 card. The 894. 7.77. The 10,679, 11. It was a pleasure meeting you this month. First month of full fledged velocity banking under the books. This works. Yes. Love meeting people in person, man. It is great. Thank you for sharing this.

Yep.

You are welcome, my friend.

So.

Course coaching, in person events. I'm open to speaking opportunities if you know. I like to speak to the church. That is a realm that I'd like to speak to. I like to speak to business owners. I like to speak to people that want to desire to become a business owner. So if you're part of a community and you want me to come into that community and provide personal financial, you know, case studies just like this, more than happy to. I got my speaking rates. So we can discuss all that. If it's a type of thing where you want to fly me out somewhere and you're on a limited budget, just be transparent with me. Hey, we can't afford to pay a speaker. I say, well, what can you afford? Can you afford to put three meals a day in my belly while I'm there and cover my flight and hotel? If you can do that, I'm there, right? I'm very transparent. If I'm dealing with an organization that is On a budget. And if you know budget ain't an issue, money's not an issue, then I charge you my normal regular, you know, hourly rate. We go from there, right? So manifesto, those are the current prices. You can obviously enroll right now. You'll see the links below in the description of every video. You can go to Denzel Rodriguez.com, do your research, do your due diligence on me before you enroll and understand that it is a combination of video content broken down into chronological order, broken down into multiple different sections where we cover velocity banking, infinite banking, kingdom, authority, 10x, your income, business opportunities, credit, both personal and business. Many different sections that I continuously add to. It's the manifesto, it's my life's work put into pre recorded video content. Then there's that addition of live private events that I do for clients only. So I'll host a zoom webinar once a month. I may increase that to twice a month where we get together. I run a case study just like this. I go deep but in a zoom setting you're able to come off mute, right? Ask a question and kind of pause me, stop me. And you really just, you have me almost one to one in a group setting. Much smaller. Almost like this, you know, 58 people watching @ the moment. You know, I've had, I've had lives where we were roughly 100, almost 200 people watching. So it's more intimate. And then there's that third component of one to one where you go through the course, you actually watch the material, you do the work, you do the pre game work, you attend the live sessions, you earn one one on one time with me that you don't have to pay for. And there's roughly about five to six opportunities to get one to one with me within about a year time frame, which is perfect. And all you had to pay was either a monthly, an annual or a lifetime. Currently come 2022 it'll be 47 and 5. 47 annually. That'll be that. And then again, I only offer extensive one to one coaching to people inside the course. Alright, so you, they got to be in the course, already enrolled in the course before maybe you cancelled, maybe it was no longer a value to you. Maybe you graduated on to do bigger things.

Cool.

And you just want to get that one to one coaching more than happy to offer, you know, whether it's a one to one session like that because we've got history. But for new people, I only offer that one to one coaching inside the course. People that want to Meet me in person. Here are the events that I'll go to. Grant Cardone, the Vault Conference by Patrick Bet, David Fincon. That's a financial conference. Wonderful. And then speaking opportunities. So with that being said, let's see. What was the two books you started reading when you began your business? Rediscovering the Kingdom by Dr. Miles Monroe. So Rediscovering the Kingdom by Dr. Miles Monroe and then the 10x rule. I did read that book. Those two books. I've read other books. I'm not the best reader in the world, but I have read other books in the past. Like prior to starting the business. I read Rich Dad, Poor Dad. I read a book by Tony Robbins called Money Master the Game. I read a book on basically the creation of the Federal Reserve called the Creature from Jekyll Island. Those are some great money books. So you might want to check that out. Any other questions before we close out? I have had a blast doing this with you guys. Any other questions? I'll give you a couple seconds because I know it's about a 15 second delay. If not, we're going to close it out. So I'll wait, give you a chance to look at the board once more. Take your notes. Emily says, this was great. Thank you. Wonderful, wonderful. Booker Cole says, thanks, man of God. Thank you, sir. Great, great, great, great, great. All right, I don't see anything. God bless. Enjoy the rest of your evening and we will be talking soon. Okay. God bless. Bring our forces together to really help on a massive scale. I look forward to helping more of Denzel's clients and, you know, educating them and getting them ready for velocity banking. Because we have work to do in the community. We have work to do for the next generation. We can create change in all different aspects in our personal and professional journey. How can we turn those leads into actual conversations and then turn those into sales and really dialogue and see what solutions, what problems can we provide solutions to that help us move forward and improve the entire ecosystem?