The Money Framework the Wealthy Use with Chris Naugle

Today's special guest is America's number one money mentor. Chris Naugle is going to join us today and talk about being your own bank. You're in for a treat, Chris. A huge welcome to the Lead on Purpose podcast.

Thank you so much. I appreciate you having me on. You know, I'm really excited to get into the conversation.

Oh, me too. Look, the one thing that most of us don't like talking about is kind of awkward. We don't even talk with our own families about it is money. And there's all these beliefs around money. I grew up believing, I grew up in Ireland in a working class town. So the belief was money doesn't grow on trees. The other belief was people who have lots of it are not to be trusted. So there was this like evil, evil thing around money and it was terrible. It didn't help me. I was broke for a long time until I started reading books about money and mindset and that started to shift some things. So you are a money expert. You're globally renowned, you've been focused on this for many years. You're, you've been absolutely broke. When we look at the 2008 financial crisis, you've went through ruin. So where did your fascination and interest with money come about?

I think probably when I was a little boy, you know, just always hearing mom say, you know, we're not hating the outside kind of the things like you were talking about. I mean, money was always such a negative thing that. Because that's all I ever heard, I just had to figure it out. And you know, I was a self employed young man at 16 years old and that was more about freedom of time. So I became fascinated with how money worked probably in my teenage years because I was a young entrepreneur. So I had to figure it out. And I'd watch so many of my friends go out and just blow all their money. And I was just like, I can't do that. You know, my mom, who's, I call her my unconditional one, she raised me. But when I opened my first store, she put our house, which was a tiny little 700 square foot, two bed, one bath house, she put it on the line. So money had a whole different thing to me because literally, like in that first business, that first store, which was called Fat man board shops, still open today, which is, blows my mind, that, that thing I started in 1994, I don't own it anymore, I sold it in 2010, but it's still going, but nonetheless back on track. You know, if I Screwed up money. If I wasn't good with money, if I blew money, and we had a bad month, I lost mom's house. And, you know, to be quite honest, that wasn't okay. That wasn't something I was willing to accept ever. So that's when money became important to me. But I still didn't understand it. You know, I. I understood I deposit money in the bank. When I need money for something, I take a loan from the bank. But I never grasped the whole concept of being your own bank and not giving everything to the banks and allowing the banks to be in control. And that didn't really make its way into my life until my late 30s, when I was a financial advisor and doing lots of other stuff. But I was around really wealthy people. And this one guy, Mike, he used to lend me money on my real estate deals. Mike, you know, I sat down with him about a deal and I just said to him, I said, so, Mike, how do you lend all this money? And without a flinch, Mike just says, I lend from my own private bank. Now, first thing, thinking as a financial advisor, I'm like, whoa, Mike's got way more money than I thought because he owns a bank. I even said this to him. I even said, mike, can we go to your bank? I just wanted to see it. And he's like, I don't have a bank. I operate like a bank. So when he posed that to me, and I had heard privatized banking talked about in many circles, but nobody ever really dove into it. It was kind of like this secret club, right? This privatized banking club where all these guys knew banking, but they never really told anything to anyone else. And I get it now why they didn't. But that was when I really got on the inside and realized the truth about money. Learned how to take control of it and learned how to use it more than just something that we exchange, how to actually use it as a real tool. So that was my way of finding my way into the money space, or at least the way of money really works.

Hey, James here. I wanted to take a quick moment to let you know about something. Look, I get asked to deliver keynotes and workshops for teams and companies all over the world, from London to Antarctica, from America to Australasia, from armies to small businesses to large corporates to sports teams. But I go in and deliver keynotes around the mindset of high performers, around the habits of high performers, about how we navigate change. If you would like me to come and speak to your team or speak at Your conference or deliver a bespoke workshop, please get in touch with my team. Carolinejlochlan.com will be able to help. I'll also make sure that we put that in the show notes. Amazing. I want to talk about being your own bank and this idea of having a private bank in just a moment. So this idea of money mindset, I think it's really crucial. So I firmly believe money grows on trees. That took me a long time to really shift that. And what I mean by that is the mind is the tree, and we will water it and feed it and nurture it through reading, learning, being curious, running podcasts like yourself, and adding value. When you add value to any marketplace, money shows up. So I feel it's an abundant. Money is everywhere. And, yeah, it's not an easy thing to do, but actually, we can all shift that mindset. So you've dealt with people because you mentor people all over the world around money. What are the things that people are doing wrong in terms of their beliefs around money that are holding them back?

Well, I think you just nailed it. They think money is scarce. They don't think there's enough of it where money's everywhere. I always compare money to a raging river. Someone back a long time ago saw the power of a river, but realized that by creating a wheel that had little buckets on it, they could create, you know, that power of that water. They could turn it into, you know, energy, and they could use that to make things a flywheel, if you will. And how I always explain is to say, you know, listen, if you want to. If you want more money in your life, you just need to get out there in that cold, raging water and disrupt the flow. Just imagine walking out into a river, you know, it's freezing cold. Like, the pain, you know, when you first get in, you got to kind of articulate that because that's. That's the first thing you need to do from your mindset is realize that, you know, if you. Money is everywhere, but it's not easy. So you got to fight your way to the current, the cold. But you get out there, and then all you do is you just stretch your arms out and you just kind of lower yourself in the water. And now all of a sudden, you feel that power right of that river. That's money. So how do you disrupt the flow of money? Well, it's easy. I mean, it's no secret. It's been around since the beginning of time, if you ask me. But you need to give, you know, you need to go out there and you need to serve. You need to help people solve problems. You had mentioned, I help people all over the world, which I do. And, you know, I don't, like, give them the magic, you know, or I don't, like, do this crazy thing. Like, all I do is I show people how money really works, and I show them how to disrupt it, but I also show them how to use the tool. And, you know, when I do that, the tool, you're going to have more of it if you go out and solve other people's problems. You know, I spent most of my life, I'll be honest with you, and, you know, kind of ashamed of it, but this is just how we learn things. I spent most of my life focused on solving my own money problems. Right? We all have money problems. We all have. Even the wealthiest people you will ever come across. I know billionaires, they still have money problems. They're different money problems, but they're still money problems. And I found that if all you do is spend every day of your life going out and solving people's problems, then you then are rewarded because more money flows to you. You disrupt that flow, and more comes your way. And then as you keep giving more, like we have a private foundation, my wife loves, like, going out and pledging large, scary amounts from our. Our foundation to giving, but we give. And then all of a sudden, it just. I don't know how to explain it, but it just comes back. So I know this is kind of foo foo for some of the folks listening. But listen, the most important thing if you want to have more money in your life, if you want wealth to be abundant, is you need to solve other people's problems first and foremost.

Yeah, that makes total sense to me. It really does. And it's interesting. I think, that your position is very privileged, but also very difficult in that there's so much skepticism around people who are available online giving money advice. Because the first thing people think is, is it a scam? Is it this crazy crypto thing and I'm going to lose it all. But the more I learn about you, Chris, the more I research you, I'm like, actually, this is really built on solid foundations. This is actually proven over and over and over again globally. So when you talk about that flow of money, how does money actually flow for people that are going, I don't know, I just. I work and it turns up in my bank account. How do you think about the flow of money?

Gosh, I mean, money is really digital, like, we need to stop now. This is not crypto. So, you know, you can make a crypto, you can make it blockchain anything. That's not what I do. You know, I'm not an expert in that. But when you think about money, if you just kind of like look up at, like, it's really in the airspace. It's, it is everywhere in today's world because it is digital, so it's flowing everywhere. So when I think of money, I, I first off, I never, ever look at money as being scarce. You know, I don't go and worry about money because if I worry about money, then all of a sudden those worries, they become real. And then all of a sudden then I do have a money problem, then, you know, bad things start to happen. But if I just continue to think positively about money and I continually think about money always flowing to me, then it does. However, now, because that's super foo foo, and that's not what I teach. I'm just trying to give you, like, an answer to make that happen. Like you can, you can stay in that positive, you know, Earl Nightingale is probably the best example of somebody who nails this. He completely articulates this and he talks about the 5 and the 95%. And he says, you know, if you pull 100 people and you ask them if they're going to be successful, of course they're all going to say yes. But if you follow them, you know, through life from age 20 to age 60, what you will find is that only 5% of them will be financially successful. Only 1 will be wealthy. So he says it doesn't matter how you run the test, what pool of people you use, it's always identical. And then he explains the difference is very, quite simple, actually. And those 5%, all they do is they spend their life creating, creating businesses, creating their financial freedom, creating ideas that solve other people's problems. And then the 95%, which is the majority of the people we come across, you know, who are not in a good financial place, whether they look like it. I call them rich people. You know, they, they look wealthy, but they're really not. You know, they're just living on credit. But when you look at the rest of them, what is it that they did or didn't do? Well, what they did is they conformed. First off, they conformed to somebody's failed belief system, somebody's failed dreams, and somebody's failed, you know, view around money. So, like, it's quite simple. The difference between success and failure, according to Earl Nightingale, and the studies is creation. So when you think about the flow of money and you think about how to attract more, well, create. And then back to what I said a second ago. Create solutions to other people's problems. Look at any business, the biggest businesses in the world, the trillion dollar companies, what do they do? They solve really big problems for a lot of people, right? That's all they do. So like when I go out there and I create videos and you'd mentioned my foundation is good and that's it is because it's designed that way. I created it that way. I never wanted to create YouTube videos or social media videos to sell something. I just wanted to give knowledge. I wanted to give what I've learned through the trials and tribulations I've gone through. I wanted to share that. And I have been doing this now for well over a decade and still like, you can't hire me. Like we don't coach. You can't hire me as a coach. And you know, like when people say that, well, hey, can you, can you help me? Well, sure, of course I can help you. You know, and then they say, well, how does that work? You ask a question and then I just give you an answer. And I keep doing that until, you know, at a certain point I'm just going to realize that you're not, you know, willing to put the time in. You're not willing to be that creator that's going to solve your own problems, you know, which in turn then solves other people's problems because you got it reversed. So like, I think that's the best answer I can give you for that. Is that 595 in creation versus conformity, do you want to conform to other people's beliefs or do you want to create your own destiny? It's really that simple.

It makes sense too. And it sounds common sense, but it's not common practice. And that's the thing that, you know, the 95.5 makes sense to me. So rich and wealthy. So I see and meet people all the time who have incredible cars. They got the Range Rover, they've got the Tesla, they've got their Louis Vuitton gear, they've got all the stuff. But I know because they've shared with me privately that they are financially in a very difficult place, that everything is being borrowed. They're paying ridiculous amounts in interest. It's putting strain on their marriage. So that's what you call the rich. Those are the rich people, right? What's wealthy?

It's simple. Wealthy Are people that have figured out how not to give the money back that simple. How do they go about the individual versus a rich individual? Same principles. They both know how to make money. Clearly they're both able to create high amounts of income. The wealthy have just gotten that level of wisdom where they've learned how not to give it back.

It's incredible. I love that. So I often think I read a book many years ago called Happy Money, and essentially it's just about as you give your money away, you say thank you or arigato, whatever it might be, and feel grateful for it being given away, whether it's to charity, whether it's to the car mechanic. So it's not about being needy around your money and going, my God, I'm going to be broke if I pay to get my car fixed. So how important is that positive psychology when it comes to our relationship with money?

It's everything. I mean, just think back to anyone listening to this. Like, think back in your life to times where you've like, just been negative about something. You know, Murphy's Law, they always call it, right? One bad thing happens, you get negative because of that bad thing. Then all of a sudden another bad thing happens, and then, you know, you get dragged down even further and another bad thing, it just comes right. Now, normally, Murphy's Law, what do they say? There's three, and then, then you break the cycle. But if you really think about it, it's nothing to do with the number of things. It all has to do with your, your train of thought. And you attract what you think about. So if all you do is think negatively about money, guess what? Money is going to be more and more difficult in your life. It's going to be harder and harder to find. It's just not going to work for you. But if you're just positive about money all the time, like you don't. You don't worry about all the things that everybody else does. When it comes to money, you will find very quickly that things just start to happen, okay? Money starts to find its way. But you can't just sit there with your hands out. And this is, I think, one thing that the world has wrong. I'm in the US So the US Certainly has this wrong. You know, there's so many people that just have their hand out, right? They might be positive about things, but they want everybody else to give them something. And that defies the law, right? So the law is if you give, you get, right? Not if you get, then you'll give so, like, just take that. You've known that. Like, how many times have people said, oh, I can't give to this charity? We all get in here's. Let me give you a great exercise. I'll tell you how to fix this. I did this exact same thing. All of you, especially this time of year, you get those letters that come in the mail asking for donations, right? And what do you do with them? You throw them in the garbage. Stop doing that. Here's what I want you to do. And you got to do it exactly how I tell you. I promise you, this is the start to changing how money happens in your life, okay? Not how you think about money, but this is how you change how money happens. Save all of those things, every one of them, okay? And then what I want you to do is once a week or once a month, depending on the velocity of how many of those you get, you're going to open all of them, and you're going to grab a checkbook. This is foreign to some of you. You don't even have a checkbook. But I want you to try to figure out a way where you actually have to do the work. I write checks, so I want you to go through, and I want you to open every one. And you don't need to think about this or give any thought. Literally, just check whatever box you want. $5, a dollar, maybe it's a hundred, depending on how you feel, and write a checkout, put it in there, send it, then do the next one and the next one and the next one. And every time you get one of those, I want you to write a check, and I want you to do this for a period of six months. I know this sounds crazy. You might give away $100. You might give away $1,000. It doesn't matter the dollar amount. It just matters the mindset you have when you're writing that check. When you're writing the checks, if you ever feel like, oh, I can't afford this, you're doing it wrong, you need to stop. Put that check away. Don't send that. Come back to it when you're feeling grateful, when you're feeling good, when you feel like, yes, I'm ready to write this check. And every check you write, you have to have a good feeling around giving. I swear to you, I did this. I did this because I used to be that person that when I'd get these. Everybody's always asking for money this time of year. They're always asking for money. That. That is the exact Negative viewpoint around money that will keep you broke. But when you give and you give with purpose and you give with intention, all of a sudden you flip everything. Now, all of a sudden, that is a joyful thing. Now, I'll tell you something. I know a lot of you know, I know a couple billionaires, but I know a lot, a lot, a lot of people that have tens, if not hundreds of millions of dollars. And I will tell you what all of them do. And every single one of them, they find more joy in giving than they do in receiving. When they give money, they're it. It lights them up. It's a dopamine hit. It's just. It's your purpose. But when they receive, they don't have that same feeling. It's because they've made that transition. I just told you how to do.

Is the writing part important?

The actual writing, very important. But how you feel when you're writing is even more important.

So doing it by digital transfer is not a good idea. Like getting in your bank app and doing it doesn't have the same impact it should be writing.

No, but a lot of people just don't have checks, so I suppose that would be the alternative. But again, when you're doing it on the bank thing, don't just do it. Don't. It's not a chore, it's not a job. It's not something that you just have to do and like, you have to want to do this writing. All right? So let's just say you have to do it on a bank draft or online, right? What I want you to do is I then want you to, when you open them all, write a list out of all of them and write a dollar amount next to each one that you're going to give and judge. Each time you write that dollar amount, how does it make you feel? Do you feel scarce or do you feel abundant? And it doesn't matter how much money is in your bank account, okay. Because you're going to only give what you can give. You see, it's not about how much you give. I think a lot of people think that that's the thing. Oh, I don't have much to give. Then give 25 cents. Seriously. It's not about the amount. It's about the emotion and your feeling to giving. Once you get past that exercise, if you. If you do that, anyone on here does it, I will tell you, it will change your life. That one single thing will change your life.

As you've said that, I'm actually now Thinking I hope I get lots of those in the mail. I hope I bump into people who need money. I'm actually wanting to find that. And I said kind of exciting. So it's just you saying that has shifted my energy around giving.

It was hard for me when I first did it because, you know, and here's how it will happen. I'll tell you. And this only do this for six months because what happens after six months? All the charities you gave to have then sold your data to every other charity and the velocity of those letters comes in. So at a certain point you're going to pick the ones you really truly believe in and those are the ones you're going to continue to give to. But you just do this exercise. Three, six months I think is all you need to do.

That's amazing.

Thank you.

And in terms of if we stick with. Because I want to go to be your own bank in just a moment, but if we stick with this rituals and habits. So I'm a big visualizer, I'm a journaler. I do that a lot. So are there any tools like that that are helpful in around money?

Yeah, you know, I can only speak to what I do, but I read a lot of books and listen to a lot of audiobooks on planes. I'm always on a plane. So when I do that, like a lot of times I'll just have positive things that I'll read. And I go in and I often do this in my phone. I don't even know how many there are in here, but there's so many of them. I mean, I just go in and I just, let's see, I just put my positive notes and you can see this just keeps going and going and going. All these are just like positive one liners that I've picked up somewhere. Maybe somebody told me a quote that I really liked. And then what I do is I repurpose them. But I repurpose them and I usually will give like. So there's this guy, Eli, who I know really well. He owns a large business here and he's a super positive guy. I've never ever seen or talked to the man when he didn't have a smile on his face and wasn't just high on life. So a lot of times when I'll put these posts up and I put them up on threads or in Instagram, I'll put from a wise man named Eli. And I just do this because I want to put that vibration out there, that message out there that, you know, this Message, although maybe didn't come from Eli. This made me think of him because he's so positive. So now what you associate is a thought with positivity. These are just silly little exercises I do. So if you're a journaler, like, when you read a book or you get a positive idea, write it down. But if you get a negative thought, do not write that down. Don't acknowledge that. Don't let your brain and your body acknowledge the negativity. Just let it kind of bounce off you. Come in, fester in there for a little bit, and then leave. Like, don't give it attention. See, when you journal and you write things down, too many people journal about the negative things, because that's what our minds are effectively trained to do, is think negatively. So bad things happen. We journal. Just stop journaling negativity. Journal positivity.

So interesting, Chris. Like, sorry to jump in, but that's. I am doing exactly what you're saying. So I am fanatical about what's possible, what's positive, but I'm being told by others, no, no, no, no, no. You should go deep on your deepest, darkest worries and emotions in your journal. I think this thing's a place of joy and hope.

Yeah. So they're saying your thoughts are things, Right. So if all you do is go into those deep, dark things that, you know, nobody wants to talk about, like, oh, we have to acknowledge them. We have to bring them surface. We have to find the root cause. Why? That just makes us focus on it, and then it makes more. It makes it even worse. That's what I found.

Yeah, I agree. You think about. You bring about. So, like, stop thinking about the negative stuff.

Just positivity. Just keep going positive. And you know what? Listen, I. I have bad days. I have. Negative things happen all the time. But I just. I let them come. Sometimes they come in because you can't keep your defense all the time. So sometimes they come in. But what I do is I very quickly have built this kind of. It's almost this thing that just recognizes it. Oh, wow. I'm thinking negative. And then I'll just take a second, I'll just close my eyes, I'll get myself reframed, and I'll think about something positive, and then I just go with the positivity.

I love it, Chris.

It's so much. I know we're talking about. Everybody's like, we're not talking about money. Yes, we're talking about money. You just don't understand money yet. So you think money when we talk about it, you got to find. I got to give you this best investment strategy. I got lots of investment strategies, all sorts of things. But before any of that stuff will ever help you, you need to fix the root cause of why you look negatively at money. These are the things that we're doing right now, which is far more important than what you do next. Right?

I agree. And this is the part I geek out on is the foundational philosophy. Because I feel like in my life. So when I became a world champion drummer for the first time, it was like, okay, going back to how I got there. Well, that was because the philosophy, the foundation, the rudimentary structure. I spent so long getting the technique right, getting the rudiments right. The world championship was not an overnight success. And I see the same thing with money, with business, with relationships. We all want to get straight to the tools, the tactics, the high. But actually, the gold is in the foundation and the philosophy. And that's exactly what you and I are talking about right now, 100%.

Like, listen, like, you know, everybody knows, like, an Indy car, right? You could put the, you know, person that watches F1 all the time in an F1 car, and they would not know how to drive the car. It's because they haven't built the foundation. Like, the person that knows how to drive the F1 car probably started with a little go kart when they were a kid and had worked on that foundational level for the most. Most of their life, up until the day they got in the F4 or the F1 car, then they knew how to operate it. But had they not started at those foundational levels like, that F1 car wouldn't have been as fast as a Prius. Like, you just would not know how to operate the car. So what's the point in having the F1 car if you don't have the foundation to operate the F1 car? Money is the exact same thing. We got to build the foundation first, which is all just here between these two ears. This is where the foundation is, and it is so much around the thought process with it. That's it.

No 100% agree. May I ask you tactically, a couple of books that come to mind when you think. Actually, these really shifted my money mindset.

Think and Grow Rich was a huge one. Think and Grow Rich, Rich dad, poor dad. I know that's a cliche book, you know, but that one fundamentally changed my viewpoint on certain aspects of money in real estate so that, you know, I had a very long period of time in real estate, where we did lots of stuff. And that book was foundational for me with that. But there's so many other good books. But those are the two that just come to mind. The Bible, not to, not to go to that one. But that one's really good because it has all the foundational pieces in it as well.

That's incredible. And if we now transition and go through to be your own bank. I mean, that concept, people.

Oh, it gets even easier, right? Yeah.

So let's. What, how do we do that?

So be your own bank. A lot of people hear about this. Some people refer to the infinite banking concept because R. Nelson Nash, the late R. Nelson Nash, pioneered the name, the infinite banking concept. He didn't create the concept. Concept had been around. Gosh, I, I tried sourcing the history, but it went back to Rothschild's, Rockefellers, Morgan's and Stanley's. Pretty much all the bankers. So here's the thing you need to understand. We are not taught how money works. What we're taught is we are taught. Now, I know some of you are listening, some of you are watching. I'm just going to hold some, some $2 bills up here, okay. Just kind of want a visual. So we're taught to do some things really well in our upbringing. We're taught to work really hard. So from a young age to an old age, what you've been taught is that if you go and you work hard in whatever it is you're. You're good at, then you will be rewarded for your hour of time. Okay? So we have immediately been associating our time, one hour, with a specific dollar amount. I remember when I was a kid, you know, I worked on a farm for $3.25, but I knew that some of the guys I worked with made 550 an hour. So remember, I was at three and I wanted to be at five. So five would have been like at that time. That's a high goal, right? But then as time went by, I'm like, well, no, that now I want to make 10. 10's a high goal. And throughout life, you know, you put different amounts, but you are still limiting yourself because you are, and this is being your own bank, you are still associating your time with money. And if you go through life with that one idea of your time is worth a certain amount of dollars, you will never be wealthy, because to be wealthy, you need to apply a simple concept. And that is your money must work for you. Now. Yes, you got to work for it in the beginning, so your time for money has to happen. But there's laws, like, there's lots of laws around this. And I don't want to spend too much time with this because I want to get to be your own bank. But as you start saving money, here's what you've been taught to do. You've been taught to take your hard earned dollars, take them into a bank, a traditional bank, and deposit the money there. There's not one person listening to this right now that was not taught that. And then when you needed money to buy something, first you were taught to look at what your balance was. I wanted to go kart. Okay? I had 500 bucks. I can buy a go kart now, right? So you saved up enough to buy the toy or whatever it was. Now all of a sudden, you're back to zero. So now you're starting again. And then at a certain point, we realized, well, hey, I can save. And then I can still get the things even though I don't have enough because I can borrow. I just have to work on my credit. I got to have an income and all those things. So these are the fundamental things we're taught. But what you're really being taught, forget about what you think you were taught. Here's what you were taught. First off, you were taught to take your money and give up control to the bank. Because that's exactly what you do. If you read the fine print, you don't control that money. And if you did, the bank would have to call you every time they lent your money out on something. They have to. Hey, Mr. Naugle, is it okay if we lend $2,000 for this motorcycle loan? No, I don't really think I want to lend on motorcycles. Okay, Mr. Nagle, we'll keep your money in the vault. They don't do that. They lend your money without your permission. Okay? So of course you are not in control. But then we've been taught, when we want something, they've made it so easy to borrow money. We can borrow money on everything for anything. And all we need is credit and an income stream. That is it. And because of that, what they have done is they have. Effectively. Very effectively. And who's they? The banks, the institutions, whatever you want to call it. They have conditioned us to be slaves to the banking system, because we really are. Because eventually we've got all this debt, and then every dollar we're making, the money we're working for. What we have to do is we have to give most of it over here to pay our debts and expenses, and then there's a little left, and we call that savings. Now, there's a fundamental flaw there. And that fundamental flaw with that is. Or saving what's left. Change that, okay? So the start to being your own banker is change that you pay yourself first. The minimum should be 10% of what you make. But you might have to work up to that. Remember I said, like, maybe it's a quarter you can give and then it's a dollar. We got to work up to these things. So here's how Be youe own bank works. If the banks in Wall street, if you give them your money, they're in control of it. Well, that's the first thing we need to change. And this is what that gentleman, that wealthy man told me. That Mike guy, he didn't put his money in banks. He put his money the same place that the wealthiest families throughout history had. And that is into a place that most of you are going to disagree with me. But hold on. With, with that is a specially designed and engineered whole life insurance policy from a mutually owned life insurance company. Now, right there, that sounds wrong. That sounds scammy. I knew there was some pitch, not pitching anything. If we were to run through the baseline fundamentals, okay, back to the foundational level. The fundamentals of is a bank better than a whole life or is a whole life better than a bank? Well, there's a lot of things you'd have to do. You'd have to t chart what is important to you about your bank account and then compare it to this specially designed whole life. And I can tell you 100% of the time, after we t chart this and we go through all the questions that you want to come up with, the whole life will be better. So now, once we've established that the whole life is simply a better place to store our wealth, our savings, that's not what's going to make you wealthy. The whole life is only going to be slightly better than a bank account, okay? That's it. Slightly better, maybe 1 or 2%. Hardly worth getting excited about. But what happens next is what matters because the insurance companies are not banks. They don't care about controlling your money. They don't lend your money. They don't do anything, Right? So what insurance company would love to do is to give you your money back as a loan, okay? Now, they do this differently. The whole life contract basically allows the insurance company, okay, to promise two things because there's guarantees. They guarantee a fixed interest rate. On your money guaranteed for the rest of your life. Unlike a bank, which fluctuates, this is one rate guaranteed for your life. But the second guarantee the contract gives you is a guarantee that the day you die, a death benefit will be paid out to your family. What most people fail to realize is these insurance companies are happy to lend you your death benefit while you're living. They just require that you have enough cash value to collateralize the loan. So remember I said what we're going to do is we're going to change where our savings goes. We change that to the whole life policy, but that is only where we're going to put the money. We're immediately going to find a way to redeploy that money to make money a second time. Because if the insurance companies are paying us interest and dividends on our money right now, it's like 5 to 6.6% the highest going today. But I can still make that 5 to 6.6% even if the money is taken from the whole life policy. That doesn't make sense, does it?

No. That's like mind blowing.

Yeah. If I put $1,000 in a bank account and I take 900 out, how much is left in the bank account earning interest? Yeah.

You've got 100 bucks sitting there.

100 bucks. Right. If I put $1,000 into a whole life contract and I take $900 out as a loan, how much is left in the insurance company or how much insurance all sitting there? All of it's in there because you didn't use your money. You borrowed your death benefit, collateralized it with your cash value, which means now all of your money is still working for you 24, seven. Seven days a week. You're still earning uninterrupted compounding interest. Okay. Which is by Albert Einstein standard, the most powerful thing in the universe is compound interest. So we've just found one thing that you can't find anywhere else. A way for our money to work for us without ever being interrupted for our whole life. So we keep saving. And no matter how much of that money that we save we use, we don't stop earning. So the compounding continues. That all itself is very powerful. But now the banking part, be your own bank. What our goal should be first is to identify where can our money go? Because, hey, why would we leave it in the whole life if we can take it out and then still make the interest rate? Right. Well, let's take that money out and find a place for that money to go, earn a Higher interest rate than what the insurance company is going to charge us on that loan. That's a key thing. The insurance company is not just giving you your death benefit. They're loaning it to you at a relatively low interest rate. Right now it's about 5.25%. So here's where I tell people to start. Look at your debts that you have today. You got credit cards, most of them are over 20%. You got car loans, probably 6, 7%, depending on where you're at, when you got your car, whatever, keep going down the line. Your mortgage, all of those have an interest rate associated with them. If we average them all up, how much is it? I bet you it's right around 14 to 15%. Is 14 or 15% more than 5.25? Yeah. So how do banks make money? They take your money that you deposit there, they pay you an interest rate. Let's say they pay you 1%. Then someone comes back in and borrows your money at a higher interest rate than what they pay you. Right. I've never found a bank that pays me more interest than what they charge me on the loan. It's the other way, because they make a spread. That's all you need to understand about banking. Forget about the rest. Banks make a spread. They pay you one interest rate, they charge you a higher interest rate. They make the difference. So now let's just talk about what we just identified here. If the insurance company. Let's keep the numbers simple. If the insurance company's dividend crediting rate is 6% and they charge 5% to borrow you your money, okay, to borrow their money, but collateralize it with yours. Are you not doing what a bank does and making a spread just from a gross standpoint? That'd be a 1% spread. So that's what you're making, and you did nothing. But now let's say we take that loan and we use that to pay off one of your credit cards. And that credit card that you pay off used to charge you 20%, and every month you gave them $100 a month. Okay, just trying to keep the math simple. So just all you need to know is you had a credit card that you paid $100 a month on, every month, and the interest rate for that credit card was 20%. So you need to know, we take the loan from the policy, which I'm going to coin, the policy is now your private banking system, because it really is. We take the loan from the insurance company, we pay off that credit card. Okay, great. You no longer owe that credit card any money. But see, that's not banking. You need to be an honest banker. So now what we're going to do is we're going to take the exact same hundred dollar check you used to give that credit card and we, and we're going to put your name on that check. So you're still going to make a $100 payment. That $100 payment still represents 20% in interest that you used to give away. Except for now that $100 a month is now going to be paid back to the source of where it came from, which is your policy, which, remember, your policy never lost any earning potential. So now you're effectively recycling and recapturing $100, which was $100 that used to leave your family forever. And, and now every time you put that money into the policy, you have $100 available the next day when that check clears. You never lost any earning potential on your original money. You now are taking back control of $100 that you used to lose. That $100 represents a 28 or 20% return. Cause that's the interest rate they used to charge you. Plus that $100 is now paying back the loan to the insurance company. So if you started with $1,000 that you took out, okay, that you gave to the credit card. Now when you put $100 back in the policy, you owe the insurance company $900. The insurance company is charging you 5% on 900. Okay? Not 1,000. And every month you do the same thing and that balance is going down, which means the interest you're paying, or what they call the apr, is less. So now let's sum this up. You, you just became your own bank. All we did it is for one transaction, which is one credit card. But in that credit card, you made money twice on the same dollar. You made a spread on the insurance company paying you more than what they charge you. And then you took back the interest and the money that you used to give away. So you literally made money twice. But you didn't work harder, okay? You didn't have to work any longer, you didn't have to do any overtime. And you have to take on any risk at all because the policy is 100% guaranteed. So nothing changed in your life except you just started the process of learning banking because you just mimicked exactly what a bank does every single day. And now you are in control of your money. So now what are you going to do after you do that one? Well, you're going to keep saving and you're going to keep paying down debts. Eventually you're going to have no debts, and then you're going to move on to investing. But you see, it's all going to come from the same source. You're going to replace the bank account with the policy for your savings. It doesn't. It's not where your money stays. The goal in private banking is not to have a whole bunch of money in your policy. The goal is to have a whole bunch of money that ran through your policy working for you outside. Because every dollar is now making money twice. And the compounding interest means that you're making more and more every day. And then as long as you're recapturing and recycling whatever that money working for you makes. In that example, the credit card was $100 at 20%, I think it was $110, whatever. So that money's always coming back. So your balance on the loan is always going down, which means the interest you're paying the insurance company is always going down when the insurance company is always paying you more and more because that's compound interest.

That's amazing, Chris.

I did that, like, three different ways to try to help drive it in because we don't have any visuals, so. So I just want to give them kind of just a circle, which is all we did. Our money's going around a circle, and I just wanted to kind of give them the touch points.

Yeah, big paradigm shift there. I hadn't conceived this at all.

It's simple.

Yeah, it really is. So what, if any, are the tax implications?

Well, so this is going to go, you know, country by country is going to differ. So here in the United States would be the ultimate place to do this because all of the gains in the policy, all the interest and dividends you earn are all 100% tax free. If the policy is built properly, which we certainly build them. Right. Because there's IRS rules that we have to follow now in other parts of the world. Like, I'll pick on Canada. Canada, they have a great structure like what I just said, except their gains in their policy are taxable. So they don't have that tax benefit in different parts of the world have different tax implications. Most of them are probably going to be more like Canada than they are the US but that doesn't mean it doesn't work. It just means that you're going to lose a little bit each year to the tax man. But you know what? Is that any different than what you're doing? Now?

No, not at all. And I guess from my end here, Australia, New Zealand, probably the majority of listeners and viewers, whole life insurance policy is what they're looking to define. What's an example of that in the States that they could go and refer to.

So in the States it would be whole life insurance that we use. And then in New Zealand, I've done a ton of research on this and somebody recently challenged me on this. They were in Australia, but Australia, New Zealand is probably about the same. How I have come to believe from New Zealand. When I was there, I was looking for this. You mostly have term insurance. I could not find a single insurance company that offered whole life insurance. But this gentleman sent me this company and they, I can't remember if it was Australia. I think it was Australia, not New Zealand. And they did indeed have whole life. I didn't dive deep into it yet. So, you know, I would say for anybody in New Zealand or Australia or wherever you're at, just do some research and find out is there dividend paying whole life insurance offered in your country?

I'll write this down.

But here's the other thing. I got this great YouTube video that says, you know, IBC outside of North America, because what if you don't have whole life? Everybody's like, oh, see, that whole thing was a waste. I couldn't use that. Wait a second. No, no, no. I just taught you banking, which is single handedly very important for you to understand. Get rid of the policy. Okay, so maybe now we don't have the uninterrupted compounding interest, but do this. Find a high interest savings account or high interest bank account. Take and create a new bank account at that bank. So it's not your primary account that you use to pay your bills. So we're going to call this a segregated bank account. No debit card, you don't need any checks, just you're going to have money going in this. Then what I want you to do is do exactly what I just said, change one thing where your savings goes, it goes into this account, this bank account. Then once it goes in there, what I want you to do, and I want you to start with quarterly. Every quarter you're going to look at the balance, okay? You're going to take that money out of that account and, and you're going to do exactly what I just said with that credit card. You're going to take your debts and you're going to organize them from lowest balance to highest and you're going to knock out the Lowest balance. Now, if you don't have enough that you've saved up in the first quarter to pay off a credit card or a debt in full, no problem, pay it down by whatever amounts in that account. Take the amount. A lot of times you got to wait 30 days. This is how I used to do it. I'd wait 30, I'd pay down a credit card, I'd let it cycle 30 days on a piece of paper. I'd write, here's what I used to pay. Here was my minimum that I used to have to pay. And now because I paid the principal down, here's my new minimum. Whatever that delta is, whatever that difference is, that's the amount you recapture. So then you set up an automatic transfer for that dollar amount from your main account where your bank, where your checks go, into this new segregated account. So it might only be 25 bucks. Move $25 every month and keep doing that. And then every time, every quarter, take that amount, apply it to the balance, and then recapture and recycle the difference, the delta. Keep doing that. That's still compounding, you're still doing banking. And eventually when you get rid of all of your debts or the majority of your debts, just, just, you could even do this now. You could, I could predict the future for you. Add up all the amount, add up all your debts and the amount you pay on each one of them. Now, what I want you to imagine as soon as you do that exercise and also add up all the interest rates on each of those debts and divide them by the number of debts because that'll give you your average interest rate. Imagine right now, if you wrote a check every month for that amount to your bank account, would your life be better or worse?

Significantly better.

There you go. It's the same thing. Yes, the policy makes it a little bit better because you get compounding interest in a tax advantaged environment. But without the policy, it's still works unbelievably well. Proving that so much of what money is and how money works is all in your mind and how you use it. It has nothing to do with what it is, where it is, who has it, who doesn't. It has to do with how you think about it. And then once you understand how to think about it, how you apply it in your life, the process of how.

You use money, super powerful, Chris. And for those that maybe have very little debt or they have no mortgage anymore, they've got no credit card debt, they've paid their cars off and they're looking at investing. What's your approach there that you could maybe give them some insights around that?

So easy. First and foremost, never invest a single dollar into something that you do not know, do not like, and do not understand. I will never understand why people invest in stocks when they don't even know what the company does. Oh, I just invested in this company. I'm like, oh, yeah? What does that company do? I don't know. Why did you invest in it? I don't know. The Uber driver said it was a good investment. So in other words, you invested in it and you should have said, I don't know why I invested in it. Invest in things that you deeply understand, but not just understand. Understand what problem that investment solves and for who it solves. Get really familiar with that. If you just did that with your investment strategy, you would only invest in things that you have deep knowledge of. Therefore your probability of success in those investments would go up dramatically because you're investing in something you fully understand. And then the other thing I would say is, never ever invest in something because it pays a high return. If it pays a high return, guess what it means. You're probably going to lose it all. Okay, don't believe me? Do it and then report back in a year, two years. You're probably going to lose all your money or a big chunk of it because you're chasing the wrong thing. You gotta invest with purpose. You know, when I invest money, I'm such a boring investor. I only invest in things that I deeply understand. But I also go one step further. When I invest in those things. I want to make sure that they fit my buy box for investments. And I got a whole bunch of things like, do they solve a problem that I can wrap my head around and that I believe in? Like, is it philosophically something that I really, really want to impact? Because just think about it, like, let's say you're investing $1,000, you know, in a company that's worth a trillion dollars. Does your thousand dollars make a mark for that company? No, but you can't think about it that way. Think of it that your thousand dollars gives that company the ability to do something amazing in the future. When you think about it that way, you're vested in the company that you're investing in. And if you don't want to do any of that because you just don't have time, great. Find a ultra conservative bond fund. I like treasury bonds here in the States. Okay, that literally isn't going to pay you much, but put your money in there and keep putting it in there, because you know why? You're probably never going to lose it. And it's going to grow, it's going to compound. And if you need it, you can take it back and you don't have any worry about not being able to get your money back. So those are the two things with investing, I would say. And also, I didn't want to go here, and I know we're probably running out of time, but cars, you know, cars are something that all of us need, but we never think of a car as an investment because we always think of a car as an expense. Go back to that banking example. What if before you bought your next car, you made it a point that you weren't going to buy another car until you saved up enough to pay cash for that car, but you weren't going to just pay cash for the car? Because that's like one of the worst things you can do. Because when you pay for cash for a car, you literally lost money the second it rolls off the lot. Cause it's just depreciating so fast. But what if that didn't matter? I'm going to tell everyone of your audience right now, it doesn't matter. With or without the policy, this will work. I'm going to tell you how to get all the money back for every single car you buy, drive and own. But I'm also going to tell you how to make money on every single car. Here's how you do it. When you first thing you have to do is you have to save up enough money to buy the car. Now, I know you want the fancy car. Like, I'm a Porsche guy, so I have high taste in cars, but I understand the cars well. But let's just get down to whatever car. Let's say you saved up ten grand. That's all you've got. Great. Buy a car that's $10,000 or less. It's not going to be the car you want. But that's where you're going to start. And that's only where we're going to start. And you're going to vow to yourself when you buy that car, you're never, ever, ever going to own a car you don't want ever again in the future. This is the only time you're going to do this. But to make that that vow come true, here's what has to happen. When you pay ten grand for that car, you need to go online to a site called Bankrate.com. okay? And what I want you to do is I want you to calculate or look at what that car would have cost if you were to finance it at whatever the going rate is on used car loans. Let's say it's 6%. And that $10,000 car would cost you $200 a month. Now, what you're going to do, this is very important, so please listen carefully. You're going to take that $200 and you are going to go into your bank account. You're going to set up a bill Pay, okay, for $200. That $200 every month is going to show up. And I prefer if you do it this way. It's going to show up as a check in your mailbox every day because this is that tangible piece. So every month $200 shows up. I know this is your money, but it's a payment that you are then going to deposit in that segregated bank account. It's just going to stay there. That payment, that $200, represents segment 6% growth of your money. Every month, $200 comes back and you deposit it in that segregated account. Whatever the term of that loan was, let's say it was 60 months. After 60 months, you're going to look at your account balance and you, you have to promise you're not going to touch that money. You're going to look at that account balance. You will have gotten all the money back for that car, okay? Even if the car you know you've wrecked, it doesn't matter. You're getting all of the money back plus. Plus all of the interest. So now the next car you buy, you have that much more money to buy your next vehicle. But there's one thing that probably won't happen. You probably won't wreck the car. The car's probably still in the driveway. You paid ten grand for it, maybe now it's worth five. You sell that car now you have five grand on top of the ten you got back on top of the interest. Now you go buy a nicer car. And you keep doing that. And before long, a couple, you know, a decade or so or however long you finance the cars, you're going to have the exact car you want. And you're never going to ever not get every dollar back for every car you ever buy, drive and own, because you became your own bank. I love that.

I mean, it's just so simple.

It is.

Why have I never thought of that?

Nobody. The people I teach, but nobody does it. And it's so simple. Of course you get all the money Back, Duh. Then why aren't you doing it?

Exactly. Common sense, not common practice. It's funny. I spent this weekend in Queenstown with a billionaire and went down into a mountain layer he's kind of created. And down underneath the house is his car collection. And this is where I had another paradigm shift where I'm like, oh, that car that he bought is worth more now than it was 10 years ago. That's going to be worth even more in another 10 years. So he's making money because he knows what kind of car he wants. And yes, he had some of your favorite cars there, that's for sure, but very much a different way of thinking. And I think that's the problem that most of us think it's a tools and tactics thing, but it's all foundation. It starts with the top 2%.

Bingo. You know, and he's probably buying those cars with his own banking system and he's probably getting all the money back on top of growth of those cars. Now, again, a billion dollars. It's a different game, but it's still the same foundational things that he had to go through that you do for buying a $10,000 car.

And it's interesting, another billionaire about two years ago showed me a collection of 40 cars and I said, my goodness, the insurance on this must be crazy. And he laughed at me.

He says, what do you mean, the insurance?

I went, well, look, they're so expensive. He's. I have no insurance on any of them. I don't pay that. Because he's got his own bank, right? He'll have the money there to cover the cost of repairing, replacing the car 100%. It's amazing. Look, Chris, I know that I want to honor and respect your time. I've got one last question. I could ask you about a million more. But before I do that, where can people actually come and learn a little bit more about what you teach? Go deeper. Because already they've had a massive. I've had value, so I imagine they have too. But where could they go and learn a bit more?

Yeah, my YouTube channel, 100%. And it's @ the Chris Noggle. N A U G L e. There's like 1400 videos on there now, all different levels of money education. But, you know, every one of them are foundationally sound and will teach you how to take back control of your.

Money. We will put that link to Chris's YouTube channel in the show Notes. Please go check it out and hit that subscribe button. So, Chris, if we were to fast forward many, many years into the future. And you were highly aware that it was your last day here on Earth. And a very young person comes into the room that you love dearly, maybe a great grandchild or someone in the family that you love dearly. And they say, chris, how do I go about leading my life on purpose? What would you say to.

Them? Well, I would certainly tell them the same things we started with. I would say, well, if you want to live your life with purpose, that understand purpose in life is giving. It is the only thing that matters. And this is my last day on Earth. And the one thing I wish I did more of and started earlier at was giving. So that's the advice I would give, is it's not about how much money you have. Because you know what? I bet you all those billionaires that you, you know, I bet you all of them try to give away as much of the money as they can. And it's not just because they got so much. It's because they understand the fundament, the fundamental law, that of life, really. So that would be what I would teach them. And I would take. Not. I wouldn't just tell them that. I would show them how to do that the same ways I showed you these envelopes that come in the mail asking you for donations. Give. Start there, but give with purpose and intent. Not because you have to. When you have to do something, you ruin all that would be good about it. When you give because you want to, because you feel like it's really going to help somebody, that's good. And I. This one final thing. This is what I would say to this person. I would say, and I know you're gonna look at some of these envelopes and you're gonna be like, I read that this company gives very little of this money to the actual cause. I read that this CEO makes $500,000 and blah, blah, blah. If that's what you're focused on, you started with the wrong intent. It is not your job, or it has nothing to do with you or what happens once you give. And the universe will not identify what's going on in them. They'll. They'll be dealt with. But what you did is you gave with purpose. That is all that matters. My mother, love her to death, but that's what she does. She says, oh, that red Cross, they just. They're just greedy. None of that money goes to the cause. He said, just give because you believe your giving does good. And it.

Will. That's so beautiful, Chris. This has been a real transformational episode. And it's interesting when people see the title money often think transactional. This has been really transformational, and I'm curious. I want to dive deeper into your YouTube channel and understand more about what you do and how you do it, because I've learned so much, and I don't think this will be the last time that we'll have you on the show, that's for.

Sure. That's great. Thank you so much. I'd be honored to come.

Back. Thanks a million, Chris. All the very.

Best. Thank you so.