Sarbo and Peter break down three money mindsets: savers who avoid debt but miss growth opportunities, debtors who pay banks interest, and wealth creators who use whole-life insurance policies as personal banks. Borrow against your policy's cash value while it keeps growing under guaranteed contracts.
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Either we use cash and we lose the opportunity to earn interest on that money, which is called cost of loss opportunity. Or we borrow someone's money and we pay that person by principal and interest and it costs us interest on the transaction.
In this video, we're going to talk about three mindsets. The saver, the debtor, and the wealth generator. And we're going to get into a discussion to see the differences between the three. If you haven't already, please check out our other videos on this YouTube channel, the Banker's vault. And also we're going to leave a link to get a copy of this book. Becoming your own banker. Unlock the infinite banking concept. So, Sarbo, let's dive into this discussion. Where should we start? Let's start with the saver. How would you characterize saver?
Well, Peter, saver is someone who just doesn't want to borrow money or that individual just doesn't like debt. All they want to do is save up their money to a point where they have enough money to buy whatever they want to buy and they want to use their savings to accomplish the objective of buying the goods and services. They just don't like debt. They don't want to get into debt because they don't want to pay interest to someone. So that is what I would categorize as a saver.
Okay, so next up, let's get into what's the next on the list? The debtor.
Yeah, and the debtor is an individual who just doesn't have enough money saved up. So they're always dealing with borrowed money. They always are relying on someone's banking system to finance the things that they need and they pay that someone back, principal and interest. So a debtor is always relying on debt to accomplish their objectives. Whereas as compared to saver, saver just doesn't want debt. They're always saving money and they're using their cash to buy the goods and services.
The final person would be character in this play would be the wealth creator.
The wealth creator. And the wealth creator is the individual who's using the process of becoming your banker to buy the goods and services that they need in life. And they build wealth by buying the goods and services that they need in life via the process of becoming your own banker. So Peter, would it be okay if you just share this in an Excel sheet?
Yeah, let's do it.
Let's do some annotation. The first individual is a saver. Now saver Again, somebody who just wants to save money doesn't want to get into debt. Let's describe a saver graphically.
Let's assume that this is zero vault. This line determine stands for zero vault. A saver wants to save money. The top portion is saver, which is positive. So they want to just save money. Now before they start buying anything, they have to save up, right? So they're saving money where, Peter?
They're saving it into a commercial bank.
Typically, they're saving into someone else's banking system. And once they have enough money saved, they take all that money and they deplete their account to zero. Because now they've used all that money to buy the goods and services that they need. They accomplished the objective of using the money to buy the goods and services by using their own cash. But in that transaction, what happened to all the money, Peter?
Money has left them.
It's down to zero. Now, in their mind's eye, they're thinking, hey, it's a good transaction because I'm using my cash to accomplish the objective of buying the goods and services I don't have. I'm not in debt. I'm not paying anybody any interest. So I am getting ahead in life financially because I'm not paying any interest on it. Now, Peter, you and me know that when we spend cash and goods and services, that money has gone forever. We cannot use that money again. We cannot spend that money again. We can certainly not earn any interest on that money again. There's cost of using cash, and that cost is called cost of loss opportunity. If you haven't checked our video on cost of loss opportunity, make sure you check out that video and make sure that you're sitting down once you see the analysis of the video. The cost of loss opportunity, guys, can sometimes be a lot more than gains you can ever make any investments, because once that money is gone, it's gone forever. Not just for your lifetime, but the next generation to come. So, Peter, if you continue with this individual and now they want to save up more money again, and then they're working towards the next objective. Once they have enough money, they take all that money, they buy the goods and services, but all the money is gone. So if they continue doing it this way, they are accomplishing the objective, but they don't have any money to show for it, right?
Correct.
Now, the other individual is a debtor.
Now, let's assume that this is negative. Now, my handwriting needs to be a little bit better. So this is debtor. That is a saver. Now, a debtor has no money to begin with, so the debtor always starts with A loan. So let's just say this person wants to buy something. They don't have the money. They go to the bank, they borrow the money, and they acquire the goods and services. Now they have to start paying back the debt to the bank. So they start working hard to pay off the debt. As they pay off the debt, once the debt is down to zero, they will owe that product free and clear. Now they accomplish the objective of using someone's money to buy the goods and services. But what happened to the payments that they're making on the debt? Who has all the money now that.
Money'S left then as well, that's all gone back to the bank.
The money is gone. So the debtor knows how much interest they're paying on that loan because they have the calculation. The saver just doesn't know how much interest they're losing because they never do the calculation of cost and loss opportunity. Now, the debtor also ends up at zero. The saver also ends up in zero. Are they any different in the outcome?
Not substantially.
Not substantially because you're down to zero. Both transactions for saver and debtor, for that transaction, they accomplish the objective, but they don't have any of the money. Now the debtor wants to buy his next thing, whatever the next thing is. Again, the debtor doesn't have the money, so they go into debt again, they borrow money and they start making payments to buy those goods and services. When the payment is paid back to the bank in full, they own that thing free and clear. But all the payments that they made, who has all the money? Now.
Whoever they. It's the bank or whoever who is lending them the money, the money's gone.
So this is a saver, this is a debtor. They're no different. They're all down to zero. Now, Peter, what's the third character?
Third character is the wealth creator.
The wealth creator. W A L, T, H Creator. Now, this is an individual who has the need for use of money, no different than a saver and a debtor. This individual also has the need for use of money, but he's going to buy things using the process of becoming your banker. Now, before I dive into the vault, Creator, I just want to expand on one important thing. So, Peter.
We both know now every decision that we make with the use of money is a financing decision. Is that correct?
That is correct.
Either we use cash and we lose the opportunity to earn interest on that money, which is called cost of loss opportunity, or we borrow someone's money and we pay that Person back principal and interest and it costs us interest on the transaction. Is that correct?
That's correct.
So saver has cost of loss opportunity, the debtor has cost of interest. They're both making a financing decision. The decision is either not to earn interest or the decision is to pay interest. So every decision we make with the use of money is a financing decision. And the wealth creator understands that. Hence, the wealth creator wants to use the process of becoming a banker to acquire the goods and services that the wealth creator needs in their lifetime. Because we all have the need for use of money, right? So what wealth creator did is the wealth creator started putting his money into a tool that we used to implement this process, which is called a participating davenping whole life policy. And as the wealth creator was put the money into the tool, his wealth in this tool, which is called the policy is building and growing every day because of the contractual guarantees of the insurance company. Let's just say this person is age 45. They start putting money in 46, 47, 48, 49. Till the end of time, this cash is going to keep growing in the policy. And it grows every single day. Because every single day insurance company is fulfilling the contractual guarantee for this individual. Now what they can do is as compared to the saver and the debtor, let's just say this person has the need for use of money. They're able to initiate a loan from the insurance company by using the cash as collateral. And when they want to initiate that loan, there's no qualification, there's no income verification, there's no credit check. Whereas if you were a debtor and if you want to go borrow money from a commercial bank, you have to qualify for the loan, you have to consent to the repayment terms. You have to make that payment happen no matter what happens. Whereas in this case, when a wealth creator borrows money from the insurance company, what insurance company does is they use their cash as collateral and they give you the money via loan from their own money pool. No questions are asked. There's no income verification, there's no credit check, there's no consent to repayment terms. The money just shows up. Now the wealth creator is able to accomplish the objective of using the money to buy the goods and services that this person needs. But whose money is the wealth creator using in the transaction, Peter? His or the insurance companies?
The insurance companies.
And what is happening to his own money in the policy every single day?
As he ages, his money continues to grow every single day.
Exactly. So he's continued to build the wealth in his own system while he's using insurance companies money to accomplish the objective. And then this individual decides how to pay back the loan back to the insurance company because that individual controls the repayment terms of the loan. So now let's just assume that this individual starts to pay back the loans on his own terms. He borrowed money right here and he's paid back the money he borrowed X. He paid back X plus yes, but he gets to re access when the loan is repaid more than X plus y because his own money kept growing in the policy every single day. So he's building wealth as he's using money to accomplish the objective and he's practicing banking. So he's paying back the money back to his own system and once his loan is repaid he gets to re access everything that he's put back. Plus More because he is a Wealth Creator if you haven't seen the video on how you can create wealth or how you can be the wealth creator by implementing the process of becoming a banker in your life, make sure that you check out that masterclass hosted by Jason Lowe. And also, if you haven't ordered a copy of this book called Becoming youg Banker Unlock the Infinite Banking Concept by Arnold Sanash, you have an opportunity today. You can click the link in the description and get yourself a copy of the book and see how you can become the wealth creator for yourself and your family and or your business.
