Vern and Taran explain how to start an Infinite Banking Concept policy by paying yourself first instead of saving what's left over. They recommend setting aside a fixed amount monthly, like $1,000, with $750 going to your premium and $250 as a buffer to beat Parkinson's Law.
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Tomorrow, if your income got cut in half, I guarantee you would figure out a way to survive and live life. That's what we're talking about. You just made a non negotiable agreement with yourself that said, hey, I'm going to take care of future self, I'm going to capitalize, I'm going to prioritize my wealth creation. I'm going to put X amount of dollars aside. Whether it's a percentage of your income or a certain amount of dollars, I'm going to put that aside and it's non negotiable because that's the payment that I've decided to make toward my banking system, toward my family's wealth, our future, whatever words you want to use.
What's up Canada? So you've probably done the work on researching about the Infinite Banking concept. Watch the videos, read the book, you know what the concept is about and you're ready to take action and move forward with that next step, starting your system. But you're asking yourself, how can I budget for the premium? What I want you to do is stick around for the entirety of this video. We're going to go over two solid options where we're going to help you figure out how to budget for your premium. Vern, have you run into this issue?
Yeah man, all the time. So I'll, you know, sit down with a client. Exactly what you said first is look, you've done the work because the key thing is what does Jason always say? The most important words in the title are your own. So it's up to you candidate to do the research that's required, the study to learn how this process works. And then you get with a good coach, somebody from the ascended financial team or someone who's an authorized Infinite Banking practitioner that that can prove to you that they've actually implemented the process. They have policies, they can guide you through the system, but then it's trying to figure out how to get the system started. There's many ways of course, you know, we have lots of videos and resources. If you have existing savings built up, it's easy to move money over from wherever it's living today as premium into the policy to get started. But Tehran, we run into people from time to time who want to get started, but maybe they're a little bit more of a cash flow pinch or maybe to get started they have to put money into the policy on a monthly basis from their existing cash flow and in their budget. And to your point, trying to figure out how do we get that Started. And I run into that all the time. They go, well, you know, I know I have existing cash flow. I just don't really know how much might be available to me or how to get started in. In Nelson's book Becoming youg Own Banker, this is a great book here. This one's not my actual copy that I used because it's brand new. But we talk about overcoming human conditions, right? And one of them is Parkinson's Law. So maybe you've run into the situation too, Taron, where you, you know, the person has decent cash flow, but you kind of wonder, like, based on their expenses and their cash flow, like, why don't they have some savings built up? Because sometimes when you don't have a specific target or you don't have a structure in place, a commitment that you have to actually save money or to achieve an objective, the cash sort of gets absorbed in the family budget. It just sort of disappears. So you're always wondering kind of, where's my money? And so I don't know if you've ever experienced that, Canada, but I've seen that a lot of times when I've met with hundreds of people and they wonder, like, where their money actually went. So what we're talking about when it relates to Parkinson's Law is you got to figure out a way to whip Parkinson's Law, meaning put some sort of a structure in place so that you're not a victim of having your expenses rise to match your income. And so that's what Tehran and I are going to drill down on today. We're going to show two different ways that you can examine your budget and actually find out what you can carve out to commit to your program. So, Turon, what's the typical way? What's the option number one that most people go through, whether they're budgeting for IBC or not, just in general, if they're trying to figure out how to save money or pay off debt, how much money can I put toward that objective? What do most people do? What's the typical way that people go about doing that?
The typical way that people are familiar with is the income comes in. Take a portion of that and you put it towards all the expenses that you have, all the bills, the water bills, the gas bills, the phone bills, the car bills, and then whatever is left over. That's what ends up being your savings. That is the typical way, but it may not be the best way.
Exactly. It's like income minus expenses equals savings. And then a lot of people are stuck in this situation, especially right now with the rising cost of goods. Interest rates are on the rise. Their expenses are cutting into that excess cash flow, that savings amount that they might have available. A lot of people don't feel like they actually have a whole lot of savings. You ever notice when you meet with your clients and they talk about their expenses, like Tehran's never on the list. Like whoever that person is, John or Bill or Susie, like their name's never on that list of bills that they got to pay.
Absolutely. It's always someone else.
It's always somebody else. Like that is literally the way that the culture, the way that we've been trained in Canada is like, oh man, it's not a bad thing. Obviously, pay your bills. But people are so good at paying everybody else first and sending all of their money away. And then they sort of are left being like, oh, I don't have anything for me, right. And of course you want to go to a movie. Maybe you got to buy a new shirt. By the time that's all said and done, like you got very little left. So it's a matter of priority. It's a matter of what's important to you. So we have income minus expenses, which by the way is a moving target in most cases, equals savings. And then you just get the scraps that are left over. We're going to show you a different way. Just a mindset shift that will maybe allow you to put yourself as a higher priority and actually allow you to find more capital to accelerate the growth of your program. So what would be a different way? Maybe option number two to run to, to get started with that budgeting option.
Number two, to your point, it's. It requires a mindset shift. So the statement you want to think about is, in your mind is pay yourself first. It's as simple as paying yourself first. You sort of set aside a percentage of your income, non negotiable. That percentage could be anything you're comfortable with. Whether that's 5%, whether that's 10%, whether that's 20% or even 30. You have to ask yourself what are the goals that you're looking to achieve? The financial goals. And in order to achieve those goals, you need money to do so. So based on that, you can reverse engineer the percentage that you need to put aside. And if one of your goals are to have money for premium for a policy, you got to figure out what that percentage is. So is that 5% of your income, 10% income, and then you go from there. So say it's 10% of income and that's a good safe place to start. A better place would be 20%. A greater place would be 30%. Let's say you do 10%. Great. You take the 10% of your income and that goes into a separate account where you don't touch it and that's your savings. And it has to be out of sight, out of mind. Once that's done. Now you pay everybody else, you come first and after you pay yourself first, then you can take care of your other expenses. And now you may run into a scenario where, okay, but I don't have enough for all of my other expenses. Well now what's that? What that's going to make you do is going to make you challenge your thinking. So now you got to figure out how can you reduce your expenses or how can you make more to cover your expenses. And by doing it this way, it helps you think in a different way and helps you solve the problem in a different way versus doing in the traditional way, which may not be the best way.
Think of it this way, as, as an example, as a human being, there's certain programs that are running in your brain and your, in your brain will figure out a way to keep you safe, right? It's like your eyes only see and your ears only hear what you program it to see, right?
Absolutely.
And normally we go about our day. We have our income that comes in and we just have our bills and we go, okay. We just kind of feel like, oh, that's just how it is. Nothing I can do about it tomorrow. If your income got cut in half, I guarantee you would figure out a way to survive and live life. That's what we're talking about. You just made a non negotiable agreement with yourself that said, hey, I'm going to take care of future self, I'm going to capitalize, I'm going to prioritize my wealth creation. I'm going to put X amount of dollars aside. Whether it's a percentage of your income or a certain amount of dollars, I'm going to put that aside. And it's non negotiable because that's the payment that I've decided to make toward my banking system, toward my family's wealth, our future, whatever words you want to use, it's no different than when you go. Typically we do the consumer thing, right? We go to the car dealership and we negotiate and we get ourselves a loan for our vehicle. Sometimes we don't even think, put the time to think in whether or not we can afford it. And then you, you figure out a way to make that payment, you've made that commitment. And you know it's going to be extremely uncomfortable if you don't make the payment and someone comes, gets your car. So we can figure out how to manipulate that payment all day long and fulfill for somebody else, but we can't figure out how to do it for ourselves. It's a mindset. You make that commitment, you set that money aside, and then you say, okay, here's what I have to live life. And now with that amount that you have to live life, the things that are really important within that are going to come first. The things that are less important are going to fall off the wayside. Right? Because you've already made that commitment to yourself over here. So it's no different than if something bad happened in your life, if you lost a job or if you got a pay reduction or, oh, by the way, expenses are going up right now. People are figuring out a way to live life around that, and they're still sending the money away. So if you make that commitment, you make that mental shift, you set that money aside. I liked how you talked about, hey, I'm going to put this aside in a side account. Of course it's not going to stay there. It's going to eventually go to premium. But even if you don't have a policy yet, maybe you're just still in the investigation process, you're still learning about it. Maybe you just had a meeting or two with your coach, you're reading through the content and you're starting to figure out what your plan might look like. Well, you can start immediately. It might not go your capitalization, your deposits might not immediately go into your policy, but you can create that side account that Taran mentioned, create a separate savings account, and start depositing the capital in there as if it's going into premium. So you're already starting to do those mental reps and getting used to paying yourself first. When we're putting capital in the policy, right. We're building up our banking system. Nelson talks about, you know, capitalizing our system so that we can have access to cash, you know, one year, two years, five years, 10 years down the road to achieve the financing needs that we need throughout our life, whether that's vehicles or vacations or investment opportunities, whatever that might be, paying off existing debt. One of the things you might want to think about when you're setting up your income minus wealth creation, income minus savings equals Expenses that amount that you're putting aside, income minus pay yourself first equals expenses that amount that you're setting aside. I'm just using ridiculously simple numbers. Your number might be higher, your number might be lower. It doesn't really matter as long as you're putting into practice. But let's just use a round number like a thousand dollars. Let's say your income comes in, you take a thousand dollars and you put it aside. One of the things you might want to think about is maybe that entire thousand actually isn't going to be a premium deposit for your policy. Maybe it's like 50% or 75% of that. So in this case, let's say $750 a month would be your, your premium deposit, but you're still putting that extra 250 aside. That extra 250 might act. You know, it's already built within your budget so you have extra cash flow to be able to repay your policy loans. Right? Something to think about. Yeah, we want to put as much premium in the policy as we can. There is flexibility in that premium commitment. You know, there's a maximum and there will be a minimum. So there is flexibility already built in, but you still don't want to bite off more than you can shoot. So if you're planning on putting aside $1,000 a month, maybe that entire thousand isn't premium. Maybe, maybe a larger portion of that is premium, but you still have some additional flexibility in case things change in your lifestyle or in case you actually end up accessing money from your policy sooner than later so that you have additional cash that can go back in to replenish your policy loans and keep the process going. One of the things that I'll just point out to Ron is like, so far throughout this conversation, like we haven't said anything super complicated, right? Like, we say that this process is ridiculously simple and you say it over and over and over again and there's all these different things that the mind wants to pull in to make it complex. And it actually is ridiculously simple. Especially in this case. It's as simple as saying, hey, I'm going to make a commitment, I'm going to set some money aside and I'm going to get started. You're already familiar with the process called banking. You're just not familiar with controlling the process. So you get to just keep doing what you're already doing. You're just going to add one extra layer and slightly change the process so that you can eventually control that financing function as it relates to your needs.
The best way to learn about the process is to click on the link below to watchibc.com and that will take you to a training session where you can get an in depth overview of learning about the process of becoming your own banker.
Okay, so some actions that you can take is right now, reevaluate your budget, look at your income, think about what you want to put aside for yourself. Prioritize yourself for your future. Even if you don't have a policy yet, get ready to start putting that money aside into a side account so you're already ahead of the game, ready to capitalize. Go to watchibc.com or click the link in the post description below. And I'm sure there's an awesome playlist somewhere beside me where you're going to get a ton more value on our YouTube channel, Banker's Vault.
