Cash Value is King Canada

Money isn't worth nothing. It's just what you can buy with money that has value. So the money itself really has no value. When you have cash in hand, then there's times where that's a good asset to have, you know, then you have no one controlling it but you. You really understand what cash is worth. It's not worth nothing until you put it and use it for something.

You've been told that your capital can be either sitting idle, which is having cash on hand, or your capital can be invested somewhere, which is capital in a constant motion. You know, having cash on hand may be beneficial in some situations where times of uncertainty, where crisis is around, then you are saving cash from potential losses, but it comes with some cost, which is drawbacks to it as well. So I was wondering, is there a way to find a perfect blend where you have access to liquid cash without losing its purchasing power? Please watch this video till the end and you will learn about the solution.

Yeah, that was good, Raman. I really appreciate that. So what we really wanted to talk about today is like a lot of times you hear cash is king. And so today we just thought we're going to challenge that just a little bit, is cash king. And, you know, you go back to what Roman had said about, you know, when you have cash in hand, then there's times where that's a good asset to have. You know, then you have no one controlling it but you. You know, we all know that cash that sits still really isn't worth anything and it starts to cost you. There are going to be a lot of things that we go through in this video, like what are some of the ways that it costs you, Roman, when your money sits in cash, like when your assets in cash and you've got it in your hand, what are some of the drawbacks to that?

That's a great question then. So let's talk about what cash is. Right, so we consider cash is capital that is unemployed. So the capital that is not working, the capital is. That's sitting still. It can be sitting still in a bank account as well as savings account and making very little, like 0.5%. It is still cash. And then it is liquid. Absolutely liquid. You can take it out anytime you want from an ATM machine. Right. So this is what we mean when we say cash, not necessarily bills or coins. Right? Cash is readily available money. And I just wanted to talk about it because, you know, of what is going on in the war between Russia and Ukraine right now. So we're not going to Talk about politics right now, but we're going to talk about the financial aspects of what's going on. So because Russia invaded Ukraine, so what happened was people had some money saved in their savings account and checking accounts in Russia. I'm not talking about Ukraine Ukraine, I'm talking about Russia. But when the Western countries imposed sanctions on Russia, what happened was all money in Russia became inaccessible to the people. And even though people had rubles and US Dollars and euros in the accounts, they cannot really use them anymore because of, you know, political and economical situation. So the money became inaccessible even though the money was in cash. Even, even if someone, you know, predicted this, this happening and maybe cashed out from, you know, investments, maybe someone realized real estate, maybe someone realized stock market or crypto investments and had money saved in cash, what happened was now the cash is in trap, someone cannot use it. So what happened? Russian government actually banned the bank account holders from using this cash. And then there's a limit of $10,000. People cannot really convert cash into banknotes. So they thought that their cash is readily available. But in fact, the government and banks control the situation. So the big question is, who's in control of the money? And also the Central bank of Russia had a lot of reserves in gold, silver and foreign currencies. But big part of it, one third of the third of these gold reserves was held in different countries. And because of sanctions, because of what Russia is doing, all these reserves got seized, got arrested and blocked. And even though it is a liquid asset, gold is a liquid asset. Government of Russia cannot really use it. So I was thinking about, you know, definition of cash, definition of liquidity and availability. And I was thinking about how we can address, you know, this and apply to our situation in Canada, because in Canada, in times of uncertainty, we also may realize our assets, realize our investments, and then sit on cash. And this is what investors do sometimes, right when the pandemic hit. So what happened to, you know, to many investors? So what did they do?

Yeah, that's a good piece. So people that are investing, like I'm talking about sophisticated kind of investors, quite often when they see something that's going to change things in a rapid time frame, they'll actually pull their money out and leave it in cash. So they do that so that there's not the volatility, right? They think there's volatility coming. So they get it out of the investments that they've got it in and they hold it in cash, which they think is a stable, much more stable than what's going to happen in the market. So they pull it out for that reason. And with those sophisticated kind of investors, what they're hoping to do is to be able to plug that back in at a time that's going to be advantageous to them. So, yeah, there's, there's times and places and, you know, when I go back to the story that you were sharing, which is current today, with how, you know, when you think about, you know, cash and we, you know, so different things for different people. Like you mentioned, like, cash can literally be something you have in your hand and taken out, or it can be something that you have stored somewhere. It. Yet really. And I, and I've heard this definition before. It's just that money isn't worth nothing. It's just what you can buy with money that has value.

Yep.

So the money itself really, really has no value. Especially when you think about the fact that we're in the fiat currency world no longer backed by the gold standard that it used to be. There's nothing back. And it's just governments that back our currency. They're the ones that are really deciding the value and how things go in world markets really makes a difference on it. So it's really interesting to get, you know, insight from what's happening in, in Russia and how it impacts the people of Russia that, you know, they, they thought they had this, you know, value, this money, this cash sitting in there, but really it's like, it's not a. It's not a lot of value to them right now. It's just not something they can, they can use.

And you don't have access to it.

Yeah, they don't have access to it. It's just. So it's one of those pieces that I really thought, you know, when you shared that Roman, that's so powerful to give people an understanding. And I don't want to harp on that. Is that really cash is not king. That's really what I thought of as you were talking. You can't be king. Like, there's got to be a better way. Right. So let's just keep on talking about, you know, what can happen outside of situations like you mentioned, that's going on in the world right now. There's other things when you have money and you're holding it in cash, what are some of the other downsides? And one I thought of because haven't we heard about this lately? The good old word inflation.

Yeah. I was going to also summarize the advantages of having cash. Right. So first advantage is protecting your assets in a time of uncertainty. Right. So when there's crisis, you can cash out and then you can sit on cash. And then another advantage can be is readily available capital. So you can be sitting on cash if you don't know where to invest. Right. You can be sitting on cash to wait for opportunities to come by. And then once that you see that good opportunity, once you have a good deal, once you have.

A need for capital, then you can use your cash to employ this opportunity. And the third one is the financial cushion. Basically, you have access to emergency fund, a big emergency fund that you created. When the crisis comes, you don't need to worry about selling your investments or real estate assets because you already cashed out and you're ready for this, for this crisis. So you have this cushion ready for you. And talking about advantages, let's also talk about drawbacks. And then do you think there's more drawbacks than advantages or.

Good question, Roman. Like, is there more draw drawbacks than there is advantages? Because I think, you know, as you were speaking about the advantages and I just want to build off one is, yeah, if you have readily available access to cash and an opportunity comes along, that's a great thing to, you know, to be able to then enjoy whatever that opportunity is. And.

Yep.

And so when you think about the drawbacks of, you know, just having cash and I don't know, I see, you know, the fact is that it, you know, again, depending if it's just sitting in cash, so it's not invested, it's just sitting in some count, like drawing interest or whatever. Well, it could be, like I said earlier, it could be losing value every day. So that's one thing. And you know, when you think about other drawbacks to cash, it's really, you know, things like. I think it's a Willie Sutton's law, if I remember right. You know, wherever money people store money, someone will try to steal it. So if you have it under your mattress.

Yeah, it could either be stolen, you know, if it's in your. If it's in a position where a fire could happen and it could actually be burnt up, it's no longer worth anything because it's gone.

Can you re access this cash? No. No one is going to reimburse you. No government will say, you know what, it's cash. It's cash. If your cash is burned, we can't replace it.

You got that right. So there's definitely some drawbacks. And even. Let's just talk about banks and I Love banks, because they really understand money. And so when they get cash, what do they do with it? Do they let it sit still?

No, they usually put it into motion. Put it to work right away. Yeah.

I think one of the statements I've heard, I think it's got a lot of merit, Roman, is that, you know, usually the only cash that's not at work in a bank is the stuff that's in the teller's drawer. Like, they don't keep much. Like, if you walk into a branch of a bank and you say, okay, you know, you want to take out a large sum, quite often they say, okay, you're going to have to book a time so we can get that money here before we can give it to you.

And why is that where you were?

Because they don't hold it. They keep it in motion.

Yes.

And so. Yeah, so that's a perfect piece. Yeah. When you start thinking about cash, you know, and there's a lot of different ways you can hold cash. You can hold a cash in a bank, you can hold it in your hand, you can have it in a safe. There's all kinds of places, and there is a time and a place where it could be advantageous, but there's also times and places where you, you know, that's not the best thing you could do with that particular asset that you have, which is you can be turned into something of value. And so you always got to be thinking about, where do I get my value? That's what. That's what I ask people all the time. Where are you going to get the most value? And then isn't that where you should be using the energy.

The money that you have, and put it to work? So, yeah, I think, Roman, if it's me, I want to see my money doing something for me. I want it to be at work, adding value for me. And I think that's the biggest drawback when it comes to holding cash.

Yes.

It's not doing nothing. And I go back to one of the oldest books that I know of, and I don't know if there's any older books out there is the. The Bible. And one of the stories in the Bible is the parable about the talents. And it talks about, you know, taking a. You know, the person that has one talent, so they have a certain amount of money, and what do they do? They hide it, they bury it because they're fearful of losing it, and they don't put it to work. And then it goes on. And it talks about how other people had and put their money to work, their challenge to work. And that's, you know, just an example of how you should live your life. You should be thinking about, how do I take what I have and make more.

Yes.

And whether it's money or whether it's something else you've been gifted with, maybe it is truly a talent. You have to do something. Don't sit on it, don't hide it, put it to work. I think that's what I get from that. That moral of the story.

Money has to be in a constant motion.

Yeah, perfect.

Yeah. So one of the drawbacks which is the most profound is inflation. Right. So if you keep your cash in a safe or in a shoebox, then your cash is effectively losing its purchasing power. For example, if you are saving up for your computer, let's say computer price today is $1,000, and you want to save up for this computer. Computer to purchase it in one year, and then you decided to set aside some portion of your income. So when you do that, you set aside money, and then you're saving up for computer in one year, because of inflation, the computer's price went up, and now it is 10, $20. And did your cash also increase by $20 because you're setting it aside then? What do you think?

Yeah, I think you brought up a really great point.

Probably did it.

Yeah, that's exactly the point, is that money that you held wouldn't have grown. No, the buying power went down. So for that same amount of money, it buys less. You know, one of the ways that people really have experienced that in this country of ours lately in Canada here, is when they're saving up to buy a home in some of the real estate markets. So they're going, okay, I want to save up $50,000 for my down payment. And while they're doing that, Roman, the price of the home they want to buy goes up 150. And it's just like, whoa. Like, that's the impact of inflation. And so those are some of the realities. Yeah, that's a huge one. How could you. What could you do to just to protect yourself from that side of it? That's always a good question. I'm sure people here in Canada are asking themselves that all the time, like, how do I do it different?

Is there a solution to that then? So we're talking about the problem, and the problem is very clear. So having cash on hand may be risky and maybe not ideal because of losing purchasing power and because of inflation, because of risks of stealing this or Losing this money. Right. So what's our solution for that? So how can we solve this problem?

Yeah, well, that's a good question. And it's so well stated. Like there's just lots of things that, you know, if you look at how, you know, we're taught to do it, the risk that comes with it. And yeah, there is a solution. That's what we wanted to share with everyone today. Roman and I, we are infinite banking practitioners. We're both authorized in that field. So we teach people a very, very simple process of how to warehouse their money, put it somewhere where it's as safe as place as I found. I don't know anything else that's safer. And while you keep it there, it's going to grow uninterrupted. And then the other key element of it is that even when you need to utilize your value that's in that particular warehouse, you don't stop the growth of it because what you do is you take a loan against the value that you have in that warehouse. So we're talking about the infinite banking concept and that was authored by R. Nelson Nash and you can read all about it and the book called Becoming youg Own Banker, the Infinite banking Concept. And even better if you want to, I don't think nothing better than reading Nelson's book. Let's go back and really try to make that statement. But even something else that you can do is you can go and click on the link below and it's called watchibc.com and you'll get a 90 minute webinar that teaches you about the concept and what happens. Well, how does this work? Why does it work? What difference does it make? Well, we're talking about cash and we were talking about is cash king? Well, Roman and I know because we practice this in our life every day. You know, when I go to sleep tonight, the value, my cash value is going to go up and I'm going to have more value tomorrow. It has to contract.

Yep, it is growing.

What do we say? What is king? Like, what really do we think that people should understand is king, Roman?

Yeah, so cash value is king, which means that cash value combines these two attributes of having liquid cash and daily growth, which is also guaranteed. So then you did a great job. You know, you explained how we can set up your own banking system where your cash can grow daily, guaranteed. But, but what is the aspect of having access to liquid cash? How does it work? How do I get access to liquid cash? If I need to, then so can you. Can you expand on that, please?

Sure. No, that's a great question, Roman. So, yeah, with my banking system now I've got a. What I use and what we teach people to use is a very specific design of dividend paying, whole life insurance. And one of the things that I get as the owner, because I own those policies, I get the right to borrow up to 90% of my cash value, no questions asked. So I just simply fill out a form. That's the way I do it. I fill out a form and I email it to the life company. And then a few days later, usually within three to five days later, that money is in my account and then I get to use it how I choose to use it. So that's as simple as it is. It's very liquid. No, it's not immediate meaning snap my fingers there. It takes a few days, but it's about as good as system. Well, it is the best system I found because I, you know, I know when I'm gonna need money. And so I know enough that, okay, I'm gonna apply for this now and I get it in time. And it is so great because it's, it is my value. I guess I could just go back and talk about why this works. And it's really because my money has never stopped growing. I haven't interrupted it. That's the part that people have to get their mind around. It's like it just doesn't stop growing. And if you can think about 10 years, 20 years, 30 years of uninterrupted growth, that's where the value comes from, the process that we teach, which is the infinite banking concept here in Canada.

So, Roman, I love what you said when you said cash value is king because it just gives you so many other valuable attributes that you don't get with just holding cash. And then there's going to be that crowd out there. And here's what they're thinking, Roman, they're going, yeah, but I'm doing better. I got my money invested in some investment and it's doing great. And what I would say to you, if that's you, is that if you used this system that we teach people, founded on what Nelson authored, whatever you do financially will be improved. So if you can flow the money through your banking system first and then put it into whatever investment you're investing in, you will do better than if you use the process that you presently are today. That's the power of infinite banking. And we'd love to talk to you more about that. And we, we have a lot of great videos on this channel just to help you, educate you on this process. And I'd encourage you to go and look at them and take in more information and watch IBC.com and that's a great place to really get a short little training on how it works. And yeah, I thanks for bringing this up, Roman. I really love talking about cash, and I always like to remind people that, hey, when you really understand what cash is worth, it's not worth nothing until you put it and use it for something, right?

And remember, cash is not king. Cash value is king. Again, go to watchibc. Com and learn more about the infinite banking concept, where you can have both access to liquid cash and uninterrupted growth. Thank you so much for watching and we'll catch you next time.