Compounding And Control (The And Asset For Canadians 2 of 3)

This journey for me and my family was changing the way that we think and really getting down to the fundamental basics of the process and really taking control of the process. And that began to change the way that we think about every financial transaction in our life. The best investment is one that pays the most when it's needed the most.

You can control the taxes, you can't control what the rate and threshold is going to be, but you can control how you show up, what you do with your money, what you do with your behaviors. In light of that, I would just encourage people to really lean into that.

So the next section is Compounding and control. And for those of you who are viewing who maybe jumped right into this section and hopped over section number one, what we're talking about is we're talking about the end asset for Canadians. We're on sections two, compounding and control. Page 54 of the book. If you do not have a copy of the book, you have an opportunity. Just click the link. The YouTubes you can just ease on over to AndAsset CA. Click the link. It's right there. It's right above the fold and go and get your copy. You can get an electronic version or we'll courier a copy wherever you want it to go in Canada. And you will absolutely love this book. It will be transformational in the way that you think and it will be transformational in what you can achieve and once you're clear on your why and once you actually set out to get the achievement done. And so compounding and control. Caleb Williams, CEO, Founder of Better Wealth Amazing colleague, friend, brother in faith. I appreciate you very much.

Pleasure to be here, man. Just to review know your why the wealth equation is efficiency. Efficiency is so important. It's removing friction to get to your desired result. We're efficient when we understand long term, that's our word for compounding. And short term, that's our word for control. The cool thing is control can compound. Okay? So short term benefits get better if you use it well. And so the first section was incredible and I'm just so grateful for a platform and a conversation. I love this. I thrive off of this and just appreciate you and your questions. So now we're talking about compounding control. And this section really is. I have a chapter on uninterrupted compounding. I have a chapter on unhindered control. And then we talk about taxes and controlling your money like a banker. So it's going to be a meaty section, but it's going to be awesome. We Talked in the last section about the importance of compounding. I actually went ahead, I probably shouldn't have done this and talked about the penny example. And just to review if you could double the penny for 30 days or take a million dollars up front, anyone that has read this book or heard the parable would take the penny doubling every single day. Until I add other factors like taxes, fees, losses. Then depending on what those factors are, you'd be way better off taking the million dollars. The reason this chapter is called Uninterrupted Compounding is compound interest is really cute. Unless we have a, I would say a standard of saying, I don't want just compounding because we talked about average versus actual. And I could compound my money and lose it. Compound my money and lose it. I could average 80 million percent on my money. And depending on how crazy the variables are, I might be behind. So average rates of return can be misleading. I would much rather commit if I'm going to talk about compounding, if I'm going to understand what actually is compounding, which is your money growing over time. Those are three things you need matter. Money. It needs to grow. And over time, that's where you get the hockey stick. If I'm going to commit to that, I want to be the tortoise. I want a machine. Our good friend Barry Dyke calls it an economic warhorse. I want to do something that's going to make sure that money, my money, doesn't just compound for the year, doesn't just compound to retirement, doesn't just compound till I'm 80, but compounds to the. To the day that I die. And oh, by the way, creates a compounded benefit for my future, I will not settle for anything less.

Absolutely. And to do that on a foundation of no risk of loss, what would a person prefer? Would they prefer no risk of loss over uncertainty? I would say that once you see the outcome, I would argue that you would prefer no risk of loss. If you can eliminate that. Oh my goodness, that just amplifies everything.

That you just said and critics. And by the way, YouTube has made me so good because I can already see the trolls typing away. They're going to say, like, oh, if you don't take any risk, your compounding is going to be weak. And remember, compounding and control is efficiency. I'm not just talking about compound interest. That's why I love, hate this chapter, because, yes, I'm talking about compounding. So I'm going to put my compounding hat on, my mini Einstein hat on. But.

This really Comes secondary to control. But if someone was going to come to me and say, I believe in compounding for the long term, do you want that uninterrupted for the rest of your life or do you want that not interrupted for the rest of your life? I'll take uninterrupted. That means it's going to go without any interruptions, which we talked about. The wealth eroders could be fees, it could be taxes, it could be losses, they could be uncertain risk. And so my plea for everybody is when we measure compounding, let's measure long term. The example I use is asking the question, is the world flat or round? Majority of people are looking at me with five eyes right now like, okay, I thought this kid was cool. Now I'm, now I'm wondering, I'm concerned. YouTube, don't ban this video. We're not sharing this information here. We're using an example. The world is round. Okay, but I share this example because I could prove to you that the world is flat depending on how I measure. So I live in Colorado, probably one of the rockiest places to live. I could go outside and find a place on my property where if I'm measuring, you know, a foot, I could find and I could say, see Jason, the world is flat because I'm measuring a foot and it's flat.

So you reached an absurd conclusion with very little information.

Right, but it's all depending on my measurements.

Right?

So at the end of the day, if you zoom out, you'll see that the world is round. Same thing goes with compounding. If we're going to play the compounding game, which I believe everyone should, you're playing it regardless if you want to or not. Every decision you make has a compounded effect.

We have to look at our measurements and say, are we measuring legacy? Are we measuring three generations? Are we measuring till death? Are we measuring till retirement? Are we measuring till next Friday? And depending on that, depending on that measurement, there's certain assets that might check certain boxes and not check certain boxes. So the challenge that I hope to communicate is if you're going to commit to a compounding and we're going to provide powerful thought processes as it relates to compounding your money. We're playing the lifetime game, we're playing the generational game because quite frankly, no one's going to get ultra rich overnight. So if you're not going to get rich overnight in the compounding game, just play the long term. Tortoise wins the race knowing that control is where you really will have the ability to potentially risk but have a greater reward. And you can bet on things that you truly care about and you can be at the center of that investment. Anything that you want to say as it relates to compounding before we go on to the next chapter?

Oh, yeah. I would say that the institutions that tell you that it's so significant don't practice it themselves. Isn't that interesting? And where we're going to go from here is really going to even bring more clarity to that. But I would just say it reminds me of a quote from Garrett Gunderson, a gentleman that both you and I know and that you've built a great relationship with. And Garrett quoted in his book Killing Sacred Cows. He asked a very powerful question. If the minority of people in the world are accumulating and controlling the wealth, then why do we continue to do what the majority do financially? Well, we've been conditioned to. And Caleb and I are here to help you rethink your thinking so that you can change your life just like we did.

That's right.

All right, let's carry on. Let's press forward.

So.

And oh, hey, before we do that, Caleb, for, for anybody who's viewing this, if at any point again and you find yourself thinking, okay, this is really interesting. I've read the book or thank you for expanding on these chapters. What's my next step? What do I do next? Then what I would encourage you to do is just head on over to Endasset Ca. Again, that's EndAsset CA. And when you get there, you'll have the opportunity to not only get a copy, and if you already have a copy, get a copy for someone that you care about who think would benefit from the gift of this knowledge. And then you can create a time to be connected with the right person on my team. So Again, that's AndAsset Ca.

I love that. All right, so now we're talking about mastering unhindered control. And really this is where I come alive. I talk about compounding because it's important. It's the thing that it happens regardless if we like it or not. But true wealth, true fulfillment, I believe and true freedom from and to really comes in the idea of controlling your time, controlling your money, controlling your destiny. I think a lot of people that practice the infinite banking concept have the and assets in their life. All understand they value control. And because they value control, they came to this conclusion that they need to be store housing their wealth somewhere where they can maximize their control. The example I'll use. And then we're going to go through a couple questions about control, is who has more control? Someone who's invested in a mutual fund in tons of other that has tons of holdings in all these companies. And so let's say one of the holdings is Facebook or Mark Zuckerberg, who's got more control.

Definitely Mark.

It's laughable, but at the end of the day, I can't control Mark. I can't control Facebook. I can own a piece of paper that says I have ownership in the company, but at the end of the day, it doesn't really come with a massive control. Whereas Mark is one of the wealthiest people in the world, one of the most influential people in the world, and he just has a lot more control. It just goes back to asking people, do an audit of your time, your investments, where your money is being stored, and just ask the question, how much control do you really have? That usually is pretty eye opening for people. And they start asking like, man, maybe I should be rethinking about where I'm investing my money. And there's questions that I want to go through that will just be really quick. Obviously, get the book. It unpacks each one of these questions in more detail. But as it relates to the questions, I call this the big nine. And the first question is, how valuable is safety to you? Well, what is safety? It's your money being safe from something. Some people could care less. They're like, oh, I don't care at all about safety. Some people are like, that would be something that I want to be a part of. That's something that I value. And any deal that I go into as it relates to control, I'm always thinking about the safety mechanism and trying to eliminate downfalls. As it relates to safety, Definitely liquidity. The concept of your money being liquid is can you have access to it?

And we're on page 78 and now page 79 of the book.

So asking the question, does liquidity translate in what's the value of liquidity? For some people, it's a lot. For me, I value having access to my money. That's an insanely high value. Some people literally invest their money in things that they can't access for five to 10 years. Doesn't make it right or wrong. It doesn't necessarily make it right or wrong, but that's a, that's, that's a massive hit to control because we have no idea what the next five to 10 years are going to look like in anything.

Precisely. And can you get access? So is it liquid to the degree where you can get access to it without reducing the value of that asset?

You're stealing my thunder from next point.

Or you're teeing me up. You're putting the tee on. Let's see. I don't want to miss this. The third aspect is leverageable. And just what we said. Wouldn't it be cool, Jason, if you could have access liquidity to your asset but not lose your asset value? That's cool.

How would that make you feel?

Amazing.

Incredible.

And quite frankly, guys, this is what made me so passionate about the and asset is like, oh, you're telling me I can get lifetime growth and I have access to my money. And, oh, by the way, I can access my money, but I'm not hurting a lifetime growth. Where do I sign? Where do I learn more kind of deal. And so that's what we're talking about, control. I'm not just talking about life insurance at this point. I'm talking about, like, does what you're doing with your money, Is it leverageable? Is it liquid, and is it leverageable? That's a great question to ask. Anything that you want to add there?

No. I think he hit the nail right on the head.

Keep your money private. What's the value of privacy? I don't know. For me, it's high. And just reliving what we've lived the last couple years, I think people, whether they believe it or not, believe that there is some type of value for privacy. I believe the people that have the ability to keep their actions and their money private have more control than the person that doesn't. And we're talking about not just privacy from your neighbors, but privacy from your government. Right. And so it's just one of those things that it is. It's important and it's part of control. Protect your money from taxes. We have a whole chapter on taxes, ladies and gentlemen. So I'm not going to steal the thunder there, but it just asks the question, are taxes going to increase? Who controls that? Jason, I know you're a big deal in Canada, but I don't think you're. You can control the tax rate. No.

And I often say, often kid around and say, actually, you know, I'm actually quite serious about it, but I say it in a joking remark that, you know, there's two certainties in life, deaths and taxes. The only thing that doesn't get worse every time politicians meet is death.

But it's so true.

It's like in Canada, they've named it the Canada Revenue Agency.

Yeah.

What a gross misclassification.

And controls highlighted and amplified the most in this subject because you're telling me you care about control, but your money's in some asset that you don't have control over. And, oh, by the way, you have a government agency that could tax that and change the threshold and their rate at any time. And, oh, a regulation can change the like. Okay, you keep talking to yourself and pumping yourself up, because that doesn't sound like control to me. Taxes is one of these elements that I think when we look at the states and in Canada, most people are ignorant to. Most people don't know that there's a better way. And I'm telling you, if you can control the taxes, you can't control what the rate and threshold is going to be, but you can control how you show up, what you do with your money, what you do with your behaviors. In light of that, I would just encourage people to really lean into that.

Yeah, it's all about shielding it. If you can shield your money from onerous taxation.

You are now at an advantage compared to someone who isn't shielding their money from onerous taxation.

Right.

You shouldn't care what tax rates go up to if you're shielding your money from onerous taxation. Tax rates could double. That wouldn't matter to you because your capital is shielded from that. And that's what we educate you on how to go about shielding your money from owner's taxation. I haven't met anyone yet. Not one person. Maybe in the United States you've crossed paths with somebody, But I've never spoken to a Canadian the past 14 years that I've been practicing this process, who has said to me, jason, one of the primary reasons I want to talk to you is because I really feel like I'm not taxed enough.

Yeah, I haven't met that person.

Isn't that good?

Yeah. If you're like that, call me. I can be an extra tax to whatever you have.

Gonna have kids that are gonna need that money someday. So. Okay, so number six is fees.

Yeah.

Is your money protected by fees? This is just a quick checklist on how much control do you have. This is not like a. These are not like the nine questions, like ultimate questions. It's just like, when I think of control, like, these are the things that I ask. The next one is, is your money protected from inflation? That is, can the government print a bunch of money and would that affect your position?

Right.

And number eight is, is your money protected from restrictions and compulsions. Just another like, could the government create a restriction that would affect your control of said capital? And then the last thing I would say is, is your human life value protected? And what I mean by that is, I believe and what we open up this book after we talk about the importance of your why is that you are your greatest asset. What do I mean by that? My definition of an asset is something that helps you live more intentional. Robert Kiyosaki's definition of an asset is something that puts money back in your pocket. The number one asset, regardless of what your definition of what an asset is, is yourself, because you provide value and energy and wisdom and that input that creates that value. And so all I'm trying to say is make sure that when we talk about control, make sure that you're not discounting yourself and asking yourself like, are you properly covered, protected, and able to show up powerfully now and in the future? It's a wooey question, but it's important when you're talking about control.

Absolutely. And if you think about that even deeper, I promise you, you're running across people every day as we are, who have not protected their human life value because they believe that everything will be okay if, heaven forbid, the unthinkable happened unexpectedly or expectedly, if you were diagnosed with a terminal illness. And one of my late mentors, the late Bob Shiels, he said, and I quote, I wish everyone could die once, just for a week and see the problems that they leave behind.

You know, Jason, I. This is, this is me talking about the value of control. We should create a AI product that allows people to see what happens when they die. There's studies that show that if you can just show someone and how they age. If I can see myself and what I would look like at the age of 80, I start thinking differently. One of my favorite Bible verses is, help me number my days, we're all going to die. And I think it's. And this is more my opinion, not necessarily facts on how money works, but you will be way more present and you will invest better. And I think you'll be better across the board knowing that this is just a temporary life and we start caring about things that we should truly care about and not caring about things that we shouldn't. So that just go. That just should amplify everything that we're talking about. But I 100% agree. And I would be an investor if anyone wants to figure out a way to show someone what happens upon their death, I think it's really powerful.

Yeah, we should be able to do that, especially with everything that we'll be able to create in the metaverse and have people experience that journey. And I cannot overstate the importance of. Of that key point. I just cannot overstate it. We've had to deliver death benefit before and during COVID and not one grieving family said that they wished the amount of money we delivered was less. Not one. And that's such an important duty of care that I think every person has a responsibility for. And you may not think that you need it, but if you truly understood what happens when you pass, and the people who are left behind grieving and who care about you and who miss you deeply, they still have financial obligations when you die. Your income dies when you die. As a business owner and I take a look at the balance sheet of your company, I'm not going to find you anywhere on there. And you're the most important person in the business. If you started the damn thing and if you built it and you're gone, someone else is going to pick up your business, your business contacts, your business employees, and they're going to get it at liquidation. The best investment is one that pays the most when it's needed the most. I say that again. The best investment is one that pays the most when it's needed the most. And so this point cannot be overstated enough. Thank you for. For explaining it.

And I'm going to borrow that phrase. That's powerful. The best investment is one that pays.

The most when it's needed the most.

That's going to compound and serve a lot of people. Thank you for articulating that. The next chapter is talking about taxes.

Oh, boy, oh, boy. You ever push a hot button if you're watching this video and you feel like you're going to spontaneously self combust, Go get a fire extinguisher, have it on standby. And this is a hot button.

And I guess I'll just take one step backwards. The way that we end the control chapter is asking the question, what is the ROI of Engulf Club? I said this in the last video. It's how you use it. Think about that as relating to taxes. We're going to talk about taxes, and we're not just beating up different entities and our governments. We're saying depending on how you know the game, you can show up in this next world differently. So the chapter's good. That's all I'll say. You should read it. There's a couple of examples. We talk about gambling we talk about bank loan, we talk about the seed or the harvest. The whole concept is do you want to be.

Should you be playing an unknown game? So the question is if you could pay tax on a seed or the harvest, what would you choose? Would you take a loan? Jason, when an entity says I'll give you this money and oh by the way, in 30 years I'll tell you what interest rate and what the terms are. Not a chance, not a chance. And yet anytime we do a government sponsored plan, we're entering into agreeing to pay on the harvest with an unknown rate, with an unknown threshold, with an unknown who to know, who knows what's going to happen in our government. I'm trying not to swear in this. Sometimes I feel like it could make a better point, but it's just like who knows what the heck is going to be happening in 30 years. And yet we're essentially saying we vote a certain way to do certain things. But oh, by the same way we're putting our money, which is essentially partnering with the government, allowing them to take more risk, allowing them to change their equity state at any time, allowing them to essentially take our money, that sounds crazy, but, but come back 30 years from now and give me some award that will happen. And yet we're voluntarily doing that and we're taught as being conspiracy theorists by saying, hey, I don't know if postponing your money to an unknown date is a good idea. All I'll say is this, you don't know the future. I don't know the future. I can look at trends, I can look at values and I'm not super thrilled about some of the trends and values that I'm seeing in our countries. And that doesn't point to lower taxes. There's nothing that trends to say, oh, like by the way, the trillions of dollars that we printed, which I know both countries did, I think we win some type of award for printing more money than Canada. Does that trend say like, oh by the way we printed all this money and oh by the way we're going to lower your taxes?

No, no.

Last thing I'll add is inflation is a direct tax on everybody, including the poor and middle class.

Direct tax, definitely. I would add to what you shared, Caleb, because.

If you look at it from this perspective, just ask yourself the question, who is going to pay the bill? And if you had an opportunity, if I said, you know what, Caleb, we're going to go on a cross country road trip together on Route 66. Now I want you to know, because we're 50 miles into our journey and there were some things that you weren't aware of. And I've just told you that there's a ticking time bomb in the trunk.

And you and I have no idea when it's going to go off. Is the conversation on the road trip going to change? And we cannot bail out of the car, okay. Without. We cannot bail out of the car without losing the limb. So we feel stuck.

Yeah.

We feel like we don't have control.

Yeah, right.

It's like the movie Speed when she's driving the bus, and if she gets below a certain miles per hour, the bus is going to blow up. But you and I have no idea when the ticking time bomb is going to go off versus if we get to travel Route 66. We have an amazing journey, amazing trip. We have a car with no ticking time bomb in it. We've got all the resources we need to enjoy every stop along the way and spend as much time there as we want and take in the trip. Well, we're going to get to the end of that road trip feeling relaxed, feeling energized, and feeling great about the journey versus the two shaking, trembling, nervous Nellies that are in the car that has the ticking time bomb in the trunk. So you've got to take a close look where your money resides, and you've got to determine, do I have a ticking tax time bomb here? Because if I do, I need someone who can come in and help me dismantle this thing and disarm it so that it's not going to go off and cause enormous harm to me, to my family, to future generations. You can shield your money. You can bomb proof. Why wouldn't you do that? Never mind. What are the advantages of doing that. Describe to me why you wouldn't do that. What's the downside? Isn't that good?

It's a great example. And if you are somebody that says that taxes are going to either stay the same and go up due to inflation, you would be better off figuring out a way to figure out that equation fast.

Agreed.

If you believe that taxes are going to decrease, well, enjoy the ride. Good for you. But at the end of the day, with inflation, and even if rates and thresholds stay the same, which they don't, but even if they did, you're going to be paying more tax over your life because of just how that works. And so I think that's a great example. Obviously, the chapter lays out that in more detail. I believe the Canadian version talks about your guys, the Canadian approach, obviously in the andasset American version we talk about our country. And yes, it's outdated because every day that goes by the, the clock ticks up. So it's just the concept where it's like, I don't think taxes are going to go down. I'm not betting on that. And so as a result, I'm not going to bet my future on an unknown date when who knows what's going to happen. Agreed.

Do you want to compound a peaceful, stress free financial existence or do you want to compound burden? Take your pick.

It's your choice. And I'm speaking to you as you watch this video. And again, what we're talking about is in the book titled the and asset for Canadians. And we're going to flip to page 101. We're going to dive into chapter seven, controlling your money like a banker. Before we do that, if you haven't read this book, then I need you, your next step is to go to AndAsset CA. Again, that's AndAsset CA. That link is right there. It's right above the fold. Just click on it and when you get there, you can have the book electronically delivered or you can have a copy courier to wherever it needs to go in Canada. Get this book in your hands, you'll be glad you did.

All right, so the next chapter is controlling your money like a banker.

I love this chapter.

I think it's my favorite chapter. And again, this is something I'm very, very proud of, of our team, of just the headspace. Because Nelson wrote an amazing book on the premise of the power of banking and becoming your own banker.

He sure did.

It's incredible. Everyone should read it. And my criticism is give me the framework, Nelson. I always. My good story with Nelson is like, Nelson, if we were on a ship that's sinking and I was asking you where the exit is, you would give me a parable in the Bible about the, you know, the, where the exit is. And that's what I love about him because he never answers your direct question. He makes you think about it so you understand the underlying. Well, one of the things that he made me start thinking about, it's like, okay, yes, banking is the most profitable business in the world. Yes, all the buildings that are big have banks. Why? Why is that? And I believe this next chapter lays out five elements that banks are using every single day that we have the ability to use on our own lives. And if you don't get anything else out of this, try to Become more like institutions that are winning. Anything that you want to add? Before I go through this, all I.

Would say is that what's so important. I was speaking with an existing client earlier this morning, and he said to me, what really transformed this journey for me and my family was changing the way that we think and really getting down to the fundamental basics of the process and really taking control of the process. And that began to change the way that we think about every financial transaction in our life, because we truly understand that we finance everything that we buy. We either pay interest to someone else, or we give up the interest that our cash could have earned otherwise. And it was to hear him explaining this to me really made me proud and gave me an even greater sense of fulfillment because he got it. He initially approached it from the vantage point of being a real estate investor and how he could create more leverage so that he could grow his real estate investment portfolio. And his thinking has transformed his actions now because he said, I get it. I read Nelson's book titled becoming your own banker. I read this book again before the Christmas break. I saw something that I didn't see the first time I read it, and my thinking is totally changed. So carry on.

Okay. So I gave credit where credit's due, and I hope that this can be beneficial to you. So there's five things that banks do every day that we can do in our own lives. The first thing that banks do better than anybody is their institutions that get money to flow to them. They're so obsessed with this that they'll waive some fees or all your fees if you do what? Do a direct deposit, which is literally what it sounds. They're direct depositing your money that you're earning into their bank. What a genius system this is.

Think about what Caleb just said.

Isn't that good? That's amazing. Banks are like, yeah. By the way, you work 40 hours a week at your job and, oh, you get paid every other week, by the way. We're going to get that money and you can come to us to take it out. Yeah. And then we're like saying, yes, sign me up for that. So that's, number one, is banks are just institutions. Think about this. Banks are institutions that get money to flow to them. They're so good at it. And they. And they just are. They are obsessed with it. Wall street and Bay street are the same way.

Yeah.

Why? Why do they, like, what do they value? Systematic deposits where they are actually taking money out before the paycheck. So it's like they're competing with each other, but the end of the day, they're both institutions that want your money and want as much of it as frequently as possible. It's a cash flow.

And for as long as possible.

And for as long as possible. So principle number one. And again, I take a little bit of a different approach. I love to look at banks, admire what they're doing, and translate that into our own life. Just because I want to be efficient. I want to be a good steward of the money. So banks, number one, their institutions, to get money to flow to them. Number two, they understand leverage. They understand leverage. The example that I'll use, I think, is a powerful example is, let's say you're the person that's depositing $100 into my bank, and then we're going to use our good friend Richard. Okay? He's the person that's coming in to get the loan. Okay? So you deposit $100 at the bank of Caleb. I give you a 1% for that. So I give you a dollar for that hundred dollars. Okay? And then I go to Richard, I loan him your money. Here's $100. And he's gonna pay me 4%. You made 1% on your money? I made $4 for the cost of one, which is 300% of my money. What's the difference? The difference is the leverage. Right. This is a really important concept, and it's gonna compound in the next chapter, in the next segment. Understanding how to control leverage is so important, but banks do it better than any other institution. They add something that will add at the fifth element of banking. That gives them an unfair advantage to us all, but they're able to leverage that scale and do it in a really powerful way. Anything that you want to add on that, because being able to leverage your money is something super powerful. And we can learn how to leverage our own money and create the banking effect in our own life.

I think you hit the nail on the head yet again.

Number three is liquidity. One of the things that I. One of the big principles I gained from Nelson is the golden rule. Those who have the gold make the rules. Yep. The bank doesn't have to beg you to come in to do a loan with them. You got to beg them to give you that. Your money. It's just like, man, this is brilliant. Banks are brilliant. At the end of the day, the opportunity will seek you out. If you have money, if you have access to capital, opportunities will come. Good, bad, ugly. They'll come to you.

And if you have ready access to capital on demand, on your terms, then you are at an even greater advantage than someone who doesn't.

Right. So banks flow their institutions to get money to flow to them. They leverage your money. They make a killing on your money. They don't have to convince people to come to them because people are coming in for loans. So they have the gold. So they'll make the rules. And number four, when Richard takes out a loan for a house or a car, he's got to put his house and car and his firstborn as collateral in case he doesn't pay back I the bank, I'm going to foreclose on him because I don't want to risk my money. Right. So banks are also amazing institutions that reduce their risk because they're saying, yeah, you can take a loan, but what collateral are you going to give me? Oh, by the way, if you don't give them collateral, I'm going to charge you some crazy amount of interest rate and ruin your life if you don't.

Pay me back and ruin your credit.

That's what I mean.

So you inhibit your ability to access capital in the future.

Become your own banker.

The threat of a credit score is effect collateral. It's a social collateral, but it's a collateral. The point is this again, yes, there's negatives of working with the bank, but let's look at what banks are doing so far. They're getting money to flow to them. They're utilizing leverage, they're creating opportunity. And number four, they're eliminating the risk. Brilliant. When you can use leverage and eliminate your risk at the same time. Awesome. Number five is velocity. The concept of velocity is just money and motion creates more money. Best I think example of this is the difference between a stagnant pond and a river. Water can be powerful if it's in motion. And a lot of people are just having their money and it's not in motion. But if you deposit your money at a bank or you deposit your money in Wall street, you're in a pond there in a river because they're taking your money and being able to utilize it because they know that money in motion creates more money. Banks are able to use. They're able to use fractional reserve lending and all these fancy words by just saying that they can do what we can do on steroids. But at the end of the day, the principle here is get your money in motion. So this is my favorite chapter because this really gives you the blueprint. If you can apply these five principles of banking in your own life. Remember us and let us know how that translates into value in the next 10 years of your life. Because I think you're just going to start seeing opportunities and money and saving so differently than you do now.

That was amazing. So why don't we recap the key teaching moments in section two?

There's another chapter.

Oh, sorry, pardon me. Okay, we've got one more.

We've got one more. Actually, no, no, the next section is controlled compounding. So we're going to talk about. So I apologize.

No worries. That's good. You had me worried because my copy of the book, I was like, I'm in the next section here. Did I get a misprint?

So just in full summary, compounding amazing benefit long term. Make sure that you're committing to lifetime compounding. Remember, we have to measure generationally and not just a year. Number two, control. How much control do you really have? If government agencies or other institutions change the levers or make things happen, is that going to affect your life? The answer is yes. Start rethinking about how you're spending your time and money and start create more value around control. Remember, what's the value of control? It depends on how you use it. The third aspect is taxes. Are taxes going up, they staying the same or going down? If you believe that they're staying the same or going up, you better do something about it. And the way you invest and save your money is a big area that is a lever for your own self. So make sure that you're not postponing to an unknown date. Whereas Jason will say you're literally in a car with a time bomb not knowing when it's going to go off. And number five, banking is the most profitable business in the world. We can hate on the banks or we can say let's take what the banks are already doing and do it in our own life. And instead of being a stagnant pond, let's be a river. Let's get our money in motion. Let's get money to flow to us. Let's utilize leverage. Let's create opportunities with that flow of money and let's eliminate our downside. And if you can have all five of those elements in your life, you will become wealthy by thinking like a banker. And so that's the summary of chapter or section two of the and Asset.

Awesome. And that section two on compounding and control is in. Again, the book that we're talking about is the and Asset for Canadians. If you've read the book, terrific. Hoping this is incredibly helpful for you in giving you some additional awareness, additional things to think about, and some additional knowledge. And if you haven't read the book, then you have an opportunity. And so your next step is to head over to AndAsset CA. Again, that's AndAsset CA. The link is directly below, above the fold. All you need to do is click that link when you get there. You can have an electronic version of the book delivered right to your inbox, or you can purchase a copy and have it couriered wherever it needs to go in Canada. And there's so many additional resources that you gain access to by getting your hands on the book. That's all there on the AndAsset CA web page for you to go and visit.