Dan Allen and Winnie Lau break down the Infinite Banking Concept: banking as a personal practice, not a product, that lets you use your money while it keeps compounding. The core idea is taking control of your own finances instead of relying on traditional banks, and keeping more of what you earn through disciplined financial stewardship.
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And you're more driven to get that money in your hands, to spend it somehow. But you don't even think about the contract you enter into to open up that bank account to get the bank to be the middleman, to get this, you know, from this one piece of paper to like, money in your hand so that you can spend it. Right. And we don't even question it. It's just like, oh, what? Okay, yeah, authorize your sign here. Go ahead. Right.
Yeah. And we never, we never stop to think about what that truly means when, when we deposit our money at the bank and who's truly making the money.
Hi. Today we're going to speak about infinite banking basics. Do you want to know what it takes to become your own banker? If so, you're in the right place. Hi, my name is Dan Allen and I'm with Ascended Financial. And today I've got my good friend and colleague and an infinite banking practitioner, Winnie Lau. Welcome, Winnie.
Hello. Thank you so much for having me, Dan.
Well, it's my pleasure. And today we're just going to, for your sake, cover five of the basics that you need to know about when it comes to the process called infinite banking. So the first one that we were going to address was it's kind of critical right off the top is that you understand that banking is the most important business in the world. Winnie, you want to build off of that. Why is banking the most important business in the world?
Well, when it comes to wealth and finances, without the banking system, I also like to give it an analogy, like watching the movie the Matrix. The banking system is the matrix of our world. And without it, our current way that we do things, every single business, every single individual, every single small business owner, we all have a bank account, right? And without it, the flow of money sort of goes very stagnant. Kind of like the, like, you know, the water, right. The motion of money has to keep flowing all around the world, all the time. And the banking system is currently sort of like the blood vessels, so to speak, in terms of making the money go around.
Yeah, it is. It has to keep on moving. And as soon as money stops, we would be in trouble, like across the globe. We almost seen that happen in 2008. Like a lot of things come really close to grinding to the halt. The banking system. And if you remember that financial crisis, part of it was because banks just couldn't get access to money and all of a sudden things stop. And it's. Right, using the, you know, the water analogy, I love that one. You know, so without the motion of movement of water throughout our life, like through us partially and then back into the atmosphere and up and through and all life as we know it would end. And similar, when it comes to things financially, as soon as the banking, that banking stopped, it would cripple the world. So it is first and foremost the understanding that the banking function is critical. One of the most critical businesses in the world. So that's the first thing I'd really encourage people to know about the basics of infinite banking. Banking is a critical function in our lives. So next one, next point we wanted to talk about is when it comes to infinite banking, it's about privatized banking at you and me level. So we're just trying to reclaim the banking function in our life. You want to give us a high level. What is and how would you reclaim the banking function at the you and me level?
So for me, I want to almost like, back, like, you know, just reel it back in just a little bit. Because.
We have never stopped. I mean, now we are, a lot more of us are having this conversation, but we have never really stopped to even think about where are we putting our money, where are we warehousing our money, right? Like, I don't recall ever, like, not even in career and life management in school, which is one of the only courses that they've offered in the education system about, you know, how to handle finances. You know, it was about how to write a check. Here's a checkbook. Write a check, right? But like, you know, even our first job, I mean, one of the first things we talk about, oh, well, we get paid. So we get paid by check, you know, and at that time, there was no direct deposit. It was all by check, right? So then we were, you know, walking down to the physical bank to deposit our check. Well, how do you, how do you exchange this check that you just got from your job, you know, that it can turn into cash, right? But you know, you need to go to the bank to do it. And so you're more like, as a small, like a young person, you're more driven to get that money in your hands, to spend it somehow. But you don't even think about the contract you enter into to open up that bank account to get the bank to be the middleman, to get this, you know, from this one piece of paper to, like, money in your hand so that you can spend it, right? And we don't even question it. It's just like, oh, what? Okay, yeah, authorize your sign here. Go ahead. Right.
Yeah. And we never stop to think about what that truly means when we deposit our money at the bank and who's truly making the money.
That is so well said because when we've been conditioned to think the way we have in life, we're very familiar with the process you just described and who's, and no one's taught us about, hey, you could do this at the you and me level, like on a private contract, you know, kind of basis and, you know, contracting with other free people. That's one of the basics of infinite banking. It's a contract with free people amongst themselves to be able to do the function of banking. And like you said, it's, you know, we've been conditioned to like walk down to that bank back in the day and put that check in and then we have access to money that we've put on deposit there. But today it's different with electronic world, but it still works the same way, just much more, you know, electronic.
So I was just going to add. So yeah, I mean that is a basic thing to really understand is just where we put our money, where we have our money stored is one of the first basic things you want to understand about the infinite banking process.
I love it. Yeah, exactly. And that's a great second bullet. So understanding that privatized banking at the you and me level would be one of the basic principles of the infinite banking concept. The next one we want to talk about, which is number three, is really understanding that it's a lifestyle and not a product, a lifestyle. What do we mean by lifestyle, Winnie?
Well, a lifestyle is exercising and eating well, let's just go with that. That's a lifestyle every single day, making exercise a priority and eating well. Anyone who does this on a regular basis knows and understands that there's an internal battle in our own mind every single time, you know, when we see things that we come across and how many times, I mean, you know. Yeah. How many single times in one day do we get tempted to go outside of the lifestyle that we choose to live? Right. So you know, there's social events, right. We could choose to eat something at a social event that is completely outside of the exact lifestyle that we want to live. Right. And same with exercising. Oh man. You know, I know that exercising is, I need to get it done and out of the way from thing in the morning because if I don't, it, it just doesn't get done for me. But am I. Every single time that that alarm clock goes at 5:15, I'm thinking oh, I just need. I just. I just need a little bit more sleep. No, I just need a little bit more cuddles. No, no, I don't. You know, and everything in my power to fight off all of those thoughts, you know, to get up and just get moving. And it's no different with understanding that becoming your own banker is a choice. And it is something that you have to choose to do every single day because the rest of the world is mostly choosing something different.
Yeah, that's right. And that's such a key piece, is that.
Our minds are going to battle us as we learn something new. And we're going to find that like anything in life, when we want to do something differently, we have to always fight the way we used to do it. And we just, you know, it's quite easy for us to fall back to the way we used to do it. And with the basics of becoming your own banker, the infinite banking concept, it has to become a lifestyle where this is just something that you choose to do and apply it in your life each and every day and not focus on the product. So you and I both know we get all kinds of calls from people who just want to talk about the product. Well, it's not about the product, it's about the process of controlling the banking function. At the you and me level. This is very much about a personal monetary system. And once you get that, then, yeah, we use a product, there's a platform we use, but it's not about that, it's about the process. And really understanding and getting it to become a lifestyle will be one of the key principles in the basics of infinite banking. So that was a great way to share it, Winnie. So, number four, we were going to cover another principle or basic of infinite banking, and that is that when you think about North America, it's really the only process that we know about that you can effectively use the power of compounding to work favorably and effectively to your benefit. What does that mean? What is compounding winning?
Well, it just means that your money grows on top of money on top of your money that continues to grow. And it just like it just continues to layer upon layer upon layer upon layer. Right. The way that we currently know it right now is that the banking system has the power of compounding constantly working in their favor. So they always bait us with, oh, you'll get, you know, put your $40,000 of TFSA into your account and if you leave it in for five years, you'll get, you know, a 5% rate of return. If you only leave it in for three, you know, you know, three years and you'll get 3% rate of return.
But as soon as you go take out some of that money, you know, let's say you take out half of that. Now you're earning 5% on 20,000 instead of on 40,000. Whereas when you learn a lot more about the becoming your own banker, you're actually, you can actually do both. You can actually use the money in your world at the same time and achieve continued growth on the money as if it was still there. I mean.
Yeah, exactly. Who can, you know, who actually, you know, that's a really good one to get your head around when it comes to one of the basics of infant banking is that your money is going to keep on growing even while you use it in a way. And it's a very specific way and your money keeps on growing and that becomes a big part of infinite banking. Just the power that you can get that financial, you know, kind of win like the tailwind behind you pushing you because your money keeps on growing even though you, you, you're not letting it sit still. You put it to work. And that's the key thing. And I loved how you explained that if you just let your money sit there, you can't name one business that uses compounding for cash flow. They don't. They put their money in motion. Nobody lets their inventory just sit there. They put it in motion. That's what they do to create cash flow. So you can do that with this process. You can put your money to work even though while it continues to grow. And like you said, that's just a. Yeah, that's mind blowing. I like how you did that.
Right. And the book that's right behind you, the End Assets, also points out to the fact, which is almost like a secondary level to the power of compounding because really this process allows you to use the same dollar twice. Right.
In a way, you're right. Exactly. That's, that's a great. The and asset does a great job of explaining that. Just like, you know, the whole process we know as becoming your own banker really just allows you to do that. So great example of one of the. The basics of infinite banking. Number five, we're going to talk about the fifth one. This is going to be it. So we're just going to cover five things and then we're going to just give you an idea of how you can really change things for yourself if you want to learn more. So number five is it allows you accelerates the ability for you to keep more money in your hat or in your pocket. And how would that work?
So with, you know, when I really think of this, and I. And I'm going to be, you know, talking a little bit more about this in some of my own education sessions and my own book, but, you know, when it comes to financial stewardship, for me, how I've classified it is we all have to find a way to earn our money in our world, right? As a human being, we have to find ways to earn money, and number two, we have to find ways to keep more of our own money. And third, we have to find ways to grow our money at the same time. And so this is not, as, you know, we're not talking about becoming your own banker here. We're not talking about growing your money. Because there's so many.
Things in the marketplace that talk about what you could do to grow your money. Cryptocurrency and investments and real estate investing and all that sort of stuff. This is not that. This is a strategy and a skill set and a way of being able to keep more, more of your own money in your pocket. About maximizing every single dollar that you make. And what I love about infinite banking is that you don't have to make a ton of money to maximize every single dollar that you're making. You got to start somewhere, right? You don't have to.
Be rich to get started. And in fact, if you know how to do this and you start doing it earlier, you don't have to aspire to be like a gazillionaire just to feel like you have control over your financial circumstances. So this is really, you know, a process and a lifestyle that will allow you to maximize more of the dollars that you bring into your world so that you don't have to, like, you know, be so concerned with having to invest all the time. Right? In fact, one of our mentors that, you know, that once said to us, it's like, it's more important that you learn how to keep your money than grow your money. Because if you have no idea how to keep your money, then what's the point of investing? Because you're going to lose. You're going to lose more of it anyway.
Yeah, no, that's. That's so well said. And, you know, and the thing that we both know, because we both use this in our lives, is that once you gain control of the banking function, it's. Whatever else you do financially will be accelerated. Like, it's just going to, you know, you're just going to be able to do it. It's like, why Nelson, I said, you know, you can't get a better rate of return doing anything without first controlling the banking function. And we understand that now that we live this, we understand that. And for you out there, you get the same opportunity. If you really want to know about infinite banking and how does this work and how would it work for me? Well, your opportunity is just to reach out to us. Now there is lots of great coaches out there that are infinite Banking practitioners. Both Winnie and I are examples of that. I'm just going to encourage you to make sure when you start to talk to someone about this process, do it with an authorized infinite Banking practitioner because they are the ones that have been trained on how to help you get to the point that you need to be and have this start in your life. It's like Winnie did such a great job of speaking to. You don't have to start with $100,000. A lot of people say, how much do I need? Just start where you can start where you're comfortable and it'll make a difference. It's like anything worthwhile doing in life is going to take time. This process is not a get rich quick scheme. It is something that if you adopt it, make it your lifestyle, you can really make a difference for you and for your family. And as Nelson said in his book, it's the most profitable thing you can do over a lifetime. And one of his five golden rules was think long range. So if you're looking for a magic bullet, silver bullet, this is probably not for you. It's for the person that's really willing to dedicate themselves, make it a lifestyle and really apply it in their lives and educate themselves on how it could and why it works. The this is what infinite banking is for. So I'm going to encourage you to take in more information.
If you're on our YouTube channel, there's lots of great information and just take it all in and reach out to someone to help you with this process that we know and we love and it's called the Infinite Banking concept. I just wanted to thank you for taking a few minutes to share with us and thanks Winnie, really appreciated having you on with me today. That was a lot of fun and I hope we can help someone through their life with just a short little video.
Absolutely, Dan, thanks again for having me on. And Dan, you are the man and anyone who's watching this, I really highly encourage you to reach out to Dan and, you know, I know he's being humble about, you know, just reach out to any one of us now. Reach out to Dan. Do that.
