Canadian IBC is NOT about Saving Interest Payments - It's About BENEFITING from Payments!

I would like you, I would encourage you to just remove your consumer hat and wear a banker's hat. If you are a banker, do you want to pay less interest or do you want to receive more interest?

IBC is not about saving interest payments. It's about benefiting from payments. This topic came to mind when a client client reached out recently. And we thought it'd be a great idea to create this video as a coaching moment. And the question was, how can I calculate how much I'm going to save on interest payment on cars and mortgages if I finance these things by implementing ibc? Now, in this video, we're going to answer that question by going back to the basics of banking. And some of these things may seem repetitive, but we found that repetition is always, always the best way to learn. But before we get into the details, it's important to understand the only way to save interest on payments is by paying cash. And here's the problem with paying cash. If you pay cash, how much interest are you earning on the cash that you just spent? Zero. Nothing. So just to summarize, you did save interest, but now you're not earning interest. How is that pushing you ahead financially? Sarblo?

Yeah, Peter. So, you know, when we saw that email, I think it was a great coaching win for the client. Also.

Let'S go back to the basics of becoming your own banker. I'm going to pull up Nelson's book and I'm going to hide myself in the camera. But when you hear Nelson's, when you hear the title in Nelson's book, Peter, becoming your own bank banker, what are the three things that resonate with you?

I think the three of those words.

Your own banker, your own banker. Now, the question is, how does a banker make profit?

Yeah, they make it through interest.

They make it through interest payments, which is built into the payments that they're receiving. Right. They're receiving back principal, they're receiving back interest. Combine, that's total payment that the bank is receiving. And interest is profit for the bank. That is how banks make money. Now for just next five minutes of how long this video is going to be, I want you and you, meaning anybody who's watching this video, I would like you, I would encourage you to just remove your consumer hat and wear a banker's hat. If, if you are a banker, do you want to pay less interest or do you want to receive more interest? The question is rhetorical. The answer is obvious. If you are the banker, you want to receive more interest because that is how you make profit, you don't want to pay less interest. So the essence of this process is to make you the banker. So the process of becoming your own banker, the infinite banking concept has, is not about how does this process help me save interest. It's like how do I become the banker on my transactions so that when I'm making those payments, because I am the banker, I benefit from those transactions by paying interest. And Peter, just the way you mentioned, you either pay interest or you lose interest on transactions by paying cash. So either way you're going to make a financing decision. Process of becoming a banker is a better way to finance things because you become a banker on that transaction and you benefit from payments. If you haven't checked the video on the essence of becoming a banker or what is becoming a banker, you should check that video out on our YouTube channel. It'll give you an understanding on how becoming your banker works. What is infinite banking? Now I'm going to share some things. If you haven't watched that video, you should definitely watch that video. It will be a prerequisite to what I'm going to dive into. So we use a participating devrin Pink whole life policy to implement the process of becoming your own bank banker. The word participating means anybody who has this policy by virtue of owning a policy, they become a co owner of the insurance company. And by being a co owner, you participate in the profit generated by the insurance company and that profit is distributed to you via dividends and you earn profit from every product that insurance companies bring to the marketplace. Now when you are using a policy loan, so when you are initiating a loan against your cash values in the policy and you're initiating the loan directly from the insurance company and using that money to pay for goods and services. Otherwise you would be using your money to buy those goods and services or you'd be borrowing money from a bank to purchase those goods and services. Now you're borrowing money from the insurance company by using your cash and the policy as collateral. Using insurance companies money to accomplish the objective. There is going to be interest on it because you're not using your money. You're using insurance companies money. Your money is growing in the policy every single day. Now the best part is on this transaction because you initiated policy loan, you're the banker, you dictate the loan repayments back to the insurance company. But if you were borrowing someone else's capital, maybe a bank or finance company to buy the goods and services, the finance company or the bank controls the repayment terms of the loan. Whereas if you're taking policy loans, you control the repayment terms of the loan. You're in total and absolute control. So that's one aspect of it. The other aspect is you're going to pay back principal and interest because you're not going to steal the piece. You're going to treat this loan exactly how you would if you were initiating a loan from a bank. You're going to pay back principal and interest on your terms. You set up your own amortization schedule. The interest became profit for the insurance company. Now who owns the insurance company? You do. And anybody else who has a participating dividend paying whole life policy. And the interest now became profit for the business that you co own. How is that interest now which is profit shared amongst the owners of the business? It's where dividends. So when you're financing things via policy loans, you're keeping the money in your own business and your business becomes profitable. Whereas if you're paying interest to your bank, the bank is receiving all that money and they are the one going to make profit for their owners of the business, which you may not be the owner. So the question is not about how does IBC save interest. The question is you're going to make a payment. A payment is going to be a combination of principal and interest. Who is going to receive your payment, that's one. And how much of the payment is actually going to be put to work for you. That's the other aspect of it. When you're financing things from a policy by using a policy as collateral, you're financing it from the insurance company. The insurance company is going to receive that payment, principal and interest. An insurance company is going to put that money to work for you and earn you dividends. When you're financing things from a bank, the bank is going to receive the payment and the bank is going to put that money to work for the owners of the bank, which you may not be the owner of the bank.

So the process of becoming a banker again, you may be, I may be repeating myself. It's not about how do I save in trust, it's about how do I change the flow of my money so that it benefits me on the payments that I'm already making. You're going to make payments all day long. You need payments. You need to exchange money for the goods and services that you need. You need food, you need clothes, you need to pay for your property tax, you need, you need to pay for your mortgage, you need to pay for your investments, you need to pay for your kids education, you need to pay into your retirement accounts. You're paying, you're consistently paying. Payments do not end because you need money for buying the goods and services, the essential things that you need in life. Payments are not going to end. But what you can change going forward is who is going to get the payment because that is important. Whosoever gets the payment gets to use it, gets to make profit on it. If you're keeping that money in a business that you co own by redirecting those payments back into your business by being the banker in the transaction, then you're going to benefit from it. From a long term perspective, if you're not going to change that, then someone else is going to benefit from it.

Again. The process of becoming a banker is not about how it's going to help me save in trust. It's all about how it's going to help me push ahead in life by making payments. Principal and interest. That is the question.

Thanks for sharing that. I think that's a great.

I guess in terms of what you've discussed, it's really a simple process but it's just rethinking our thinking about where's the money flowing, right? It's not about saving and think about saving money, but it's about flowing money back and the payments back to our own family bank. And so we're gonna expand on this in another video called how do payments in IBC Benefit Me?