A Clear Solution to Become Your Own Banker

So who is the banker in your life today? You're the one who earns the income. Your income gets deposited into someone else's bank and you have bills to pay and that money is leaving your bank account. You are doing all the work and everyone else is getting all of your money.

So let's start with identifying the problem. Wherever wealth resides, someone is trying to steal it. Well, let's take a look at that in 2020. Do you want to save the economy? Let's start with 150 billion that Canadians saved during the pandemic. Deficits will rise to 381.6 billion. As posted by the Financial Post in November 30, 2020 now the Statistics Canada in 2018 required the nine biggest banks from and credit unions in Canada to turn over highly personal data about their customers and not tell them about it. That means every deposit, every withdrawal, bill payment, overcharge fee, credit card fee, mortgage payments and more. Essentially, they want to have visibility to everything that you are doing in that banking system. And what happened in COVID 19, that bill, it gave Liberals power to raise taxes without parliamentary approval until end of 2021. And I'm sure all of you are not surprised that during the first quarter of this year a certain prime minister decided to freeze people's bank accounts. And how is that in terms of the feeling of vulnerability that your money is in someone else's control? So who is the banker in your life today? You're the one who earns the income. Your income gets deposited into someone else's bank and you have bills to pay and that money is leaving your bank account. So if we kind of look at it, you are doing all the work and everyone else is getting all of your money. So how does that make you feel? And I, I'm sure this is probably how many of you feel.

And Garrett Gunderson says if the minority of people in the world accumulate and control the wealth, why do we continue to do what the majority do financially? So that's why, if you understand the problem, you will know what to do. The solution comes clear. Let's take a look at what the average Canadian household and many places Canadians what their annual pattern of spending looks like. So Canadians love their cars, right? Everyone seems to have nice fancy cars. At least in Toronto. As I look around, there's a lot of nice cars flowing around. Most people are making payments or they're saving money in someone else's bank and they use that money to pay cash for that car. Now automobile financing is going to make up 20% of the household spending. So this is money that's leaving the family. In terms of financing vehicles. The next that we all have are housing. So maybe you're renting, maybe you have a mortgage. But housing costs make up approximately 30% of the amount of money that is leaving the family. So that's all the money flowing into the home or, and you know, let's say if you're earning $100,000 per year while you're spending 20,000 and auto 30,000 to your home, the next is, well, you've got to look at how much money do you need to live? I mean, I have to pay for my cell phone, I've got to pay for my Internet, I got to pay for cable, I pay for things like my groceries, all of those things. Maybe I have to pay for some credit cards. All of these things. All that's happening, no matter what, all of those expenses, well, I've got to pay that to live. The next thing is, well, so after paying auto, housing and living, what's left? Now we know that most people may not be actually doing this, but let's just assume 10% is going to savings. So that makes up 100% of the money that's coming into the house and then also leaving the house. Now, what's sort of hidden is seeing the payments here. What about the interest? I know we hear a lot about interest rates and everything like that, but what I want to share with you is something called the interest volume. Okay. When you hear about that, we're taught to focus on that interest rate. You know, I have 1.9% on my mortgage. I've got zero percent financing on my credit. Well, zero percent. I mean, we all know that that's not really a thing. It sounds great, but in the business model that's in there, they bake that interest, especially into the cost of vehicle. So when we talk about financing the general interest on autos, amount of interest dollars that are leaving you is about 5%. And then when it comes to housing and financing the amount of money in terms of the interest dollars, even though you have a variable mortgage rate or a fixed mortgage rate, we know those loans are a structured amortized loan. And if we look at the amount of dollars that is being paid out in terms of interest, it's not 2%, it's about 25% related to that. The next is there might be some things related to living that you're paying, whether it is interest on your credit cards and things of that nature. So if we kind of add all of that up, that 5% here, 25% here, 5% here, the total amount of dollars that are leaving you in terms of interest, a total amount of dollars, 35% of that is in the form of volume of interest. You may have attractive low rates, but the dollars that are leaving you is in terms of volume of interest and that's 35%. So let's kind of make this a little bit more something that you can relate to. If you look at the real truth in lending. We take a look at a loan, $400,000 mortgage with a 25 year amortization period. The interest rate is 2.92%. And by doing that calculation, the monthly even payment is $1,880.24. So when we look at the layout of this, in your first month, that payment of 1880.24, well, $906.91 is being sent to the principal, which of course is bringing down the amount of money that you own. But $973.33 is related to the volume or the dollars of interest. If you kind of look at that just as a comparison, 1,880, almost 50% is principal, 50% is interest. I'm not sure where 2.92% even shows. And you know, you'll be saying, well that's, that's an amortized loan. That's where the banker has designed that loan structure for you to take on. Well, let's take a look at month two. You made another payment. Now you can see according to their schedule, that principal has moved up. You're paying a little bit more now in principal, $909 and the interest is $971. So it's come down a little bit, a couple of dollars, but it's, the split is still relatively the same. Now if we extend that all the way to one full year, the amount of principal 931.4894876. So after that $400,000, that has been initially the opening balance of the loan. The remaining balance is 388,009, 70, leaving with 11,000 used to pay down the principal. And if we look at the amount of interest that was paid, it was 22,562, a far bigger balance. Looking at where is this 2.92% in interest. Then we look at year three, we follow the same pattern through and you'll still see the amount that you are paying down in principal is still less than the volume of dollars that you're paying in terms of the interest, then we're going to look at year five and it's still about the same thing. And we extend that all the way to year 25. Assuming again whether you don't restructure the financing and don't start the cycle all over again, you just renew your finance, you go to year 25 while the principal is now a larger component of it, and then the interest is very, very small. So now you finally paid off the principal of 400,000, the original amount that you loan borrowed from. But if you look at the amount of interest dollars that you paid over the 25 year period, you've paid more money than the amount of money that you actually borrowed. So let's take a look at that equation. Who's the one who actually got really rich in this scenario? It's the banker. The banker is the one who got rich. They're the one who got all of your money. You're the one working for all of that money and sending that money to that bank. So if we look at the fundamentals of banking, the business model that they have is lend with security rather than invest with risk. But what does mainstream tell us? They tell us to invest with risk and don't pay a part of lending. So who's in control of the money? It's the bank. Now I want to ask all of you a question. What is the underlying asset to a bank? Is it the real estate or is it the stream of payments? The bank, they want the stream of payments. They don't want the real estate, they want the stream of payments. So whomever controls that motion of the money where it's flowing is the one who accumulates the wealth. So let's take a look again at the bank's business model. So the first thing in the middle we have is the bank. Now, banks are reliant upon and dependent on deposits. The banks have to be capitalized so they can't issue a loan if they don't have any inventory, like the grocery store or the canopies. They have to have money so that they can lend out so the deposits come in. And now you'll notice that here you're going to send $50,000 in the form of deposit. And not as a banker or investor. I mean you're just flowing the money into this. So you're depositing this money into the bank. And let's say 50,000 into the bank. And let's assume they're giving you 2% of interest on that savings account today. And let's assume that the bank for you, depositing your money, you are giving them control over the money once you've handed it off to them. So let's see what happens. Well, what do you think people are doing when Canadians in Canada are sending their deposits into the bank? You're filling the bank up and giving them your inventory to them. They're going to do what people want and give them. And most Canadians are going to end up buying a home, let's say, and this could be you, this could be other customers that go to the bank now. They want to qualify for a mortgage, so they're going to buy a home. And their rate in this example is 4%. And so we already saw that the volume of interest dollars that they're receiving is much more than 4% of the cash payments. So the bank is paying you 2% and they're lending out 4% in a amortized structured loan. So that the bank is the one actually making our money and making more money. Do they share any of that profit with you? No, they don't. So now what happens? That cash. So we have again, 2% sitting there. The cash doesn't actually flow. We know that the banks create money. The bank is the one who's funding that mortgage and giving that amount of money. What happens there? The seller is the one who, who receives that money. And what are they going to do? They're going to reintroduce that money back into the banking system. And the banking system is going to now say, oh, okay, now there's another interested individual who wants to go buy a car and they're going to lend that money back out, lend some money back out to this individual and again, do a, maybe a structured amortized loan also and charge 5% on this car. So if we kind of look at this now, you are the one who supplied the bank and they pay you 2%, but they're paying, they're charging someone else 4% to buy the home. And the seller takes the money and then reintroduces it back to someone else for 5%. They're really tapping into some real benefits here. Now the next thing is, well, with the car, when somebody buys the car at a dealership, that dealership is going to deposit the money back to the bank and the bank now. And you want to do some renovations in your home. Well, when you renovate your home, you're going to need money again. So if you need money again, you're going to go to the bank and you're going to borrow money from the bank and they're going to charge you 7%. Now the bank's making another 5% on top of the two. That again, just from how it initially started. So you can see already the money is always flowing away from the family. And I was flowing into someone's bank. And they're harnessing that control over the motion of that money while the contractor is going to do the work. And again from, from. Once they get paid from the dollars that was borrowed from, they're going to deposit into their bank. And at some point it's going to be, you know, all of that money is happening. And so there's going to be quite a bit of debt that essentially builds up for people. And now they're looking for some form of consolidation and debt relief. So now, you know, we're going to wrap up all the debt and it's going to be at a higher interest rate. So we're consolidating all the debt. So we got 12%. Now the bank is earning 12% from you and paying 2% to you, all from that same reservoir of money that initially started with the 50,000. You got credit cards, again from credit cards being reintroduced all back into the system. So if we kind of add everything up, we've got 2% with 3%, 5% and now credit cards, everything, all adding up. This is how the bank is creating multiple income streams for themselves by just Canadians like yourself feeding that banking system. And they're the ones who's creating the multiple income streams for themselves. So how much do you think the bank overall makes from just this one $50,000 deposit that you're putting into them? You know, if we just look at all of how much streams of income they've created, this is just from you feeding them the inventory for them. Well, the thing I just want to share with you is this can be you. It doesn't have to be someone else. This can be you.