Do You Feel Like You Are Behind Financially In Canada?

I did everything what the financial entertainers in the marketplace have told me. Hey, go put some money aside into savings account to make sure that you have money for rainy day. Hey, go put some money into mutual funds. Make sure your money is earning a rate of return. Hey, by the way, go make sure that you have some passive income. So go buy some properties and make sure that you have passive income. I did everything what I knew at that time, what I learned from the marketplace, from the financial gurus at that time, and by implementing all those strategies, it just felt like I wasn't making any progress. It felt to me I was working even harder and I was going backwards.

Are you tired of moving back in life financially? Now you may know that there is something wrong in the financial world out there. You just perhaps may not be able to put your finger on it. At least that's what I thought up until 2015. And up until 2015, I did everything what the financial entertainers in the marketplace had told me. Hey, go put some money aside into savings account to make sure that you have money for rainy day. Hey, go put some money into mutual funds. Make sure your money is earning a rate of return. Hey, by the way, go make sure that you have some passive income. So go buy some properties and make sure that you have passive income. I did everything what I knew at that time, what I learned from the marketplace, from the financial gurus at that time, and by implementing all those strategies, it just felt like I wasn't making any progress. It felt to me I was working even harder and I was going backwards. Because just like every one of you, I knew at that time that there is something wrong with what I'm doing in life financially. I just couldn't put my finger on it, not until I was introduced to the process of becoming your own banker, the infinite banking concept. This book had changed my life and this book had changed the lives of several hundred clients that we serve. If you haven't ordered this book yet, you have an opportunity today. We're going to leave a link in the description of this video on how you can order yourself a copy of the book and you'll be glad that you did. One of the things that resonated for me from this book was when Nelson shared that we cannot get a better rate of return investing into anything without first controlling the banking function or the financing function as it relates to our need for capital. Someone has to perform the function called banking in our life and that someone should be us now. In Nelson's book, he talks about.

The problem that is there out there in the financial world, which many people are not familiar with, and that problem is banking. You're already familiar with the process of banking. You may not be controlling it. So what I'm going to do is I'm going to share my screen and I'm going to bring up a PowerPoint. I'm going to walk you through the process called banking and explain to you how that is a problem and how that can also be a solution. It's a solution if you're able to control it. Now this is straight from Nelson's book called Becoming youg Own Banker. Unlock the Infinite Banking Concept. And there's a segment in his book on the problem called Banking Now Nelson. In that chapter he talks about a family. A family is earning 28,500 net after tax income. And then he shows where the family is spending money. So the family has a car payment. So the green bar represents the car payment. The family has a mortgage. So this particular green bar represents the mortgage payment. The family has living expenses, food, clothes, groceries, bills, cell phone bills, Netflix, whatever that may be. So that's the living expenses. Now this particular family is also saving. They save 10% of whatever they make because someone in their life had shared with them. You got to save 10% and then you got to put that money to work to get ahead in financially. Now, the red bars represent the interest volume on those payments. So this green bar, so I'm going to just use my trusted PDF annotator. So this particular green bar, this represents the total car payment that the family is making. So by total car payment, I mean principal and interest paid on that amortized schedule on the car payment. So this is the total payment. The red bar represents the interest paid on the car financing. It's not the rate of interest is the physical dollar amount or the interest volume paid on car financing. Similarly, this green bar represents the mortgage payments, the total mortgage payment, which is principal and interest paid to the bank. And the red bar represents the interest volume or the total amount of interest paid to the bank on mortgage financing.

This particular red bar represents the interest volume paid on living expenses. That could be interest paid on both payments. Interest on credit cards, interest on lines of credit. Now if you add up all these red bars, so auto, car and living expense interest payments. If you add up all those red bars combined, that equals to 34.5%.

So what does that mean? What it means is for every dollar that the family earns, 34.5% is just leaving the family on Interest payments.

If you look at this from another vantage point, if they earn $1 as income.

34 and a half cents of that dollar is just leaving the family on interest payments.

Now the family is saving 10%, 10% of whatever they make. So if they earn $1, 10% of the dollar is 10 cents. So they're saving 10% for every dollar that they earn, but they're giving away 34 and a half cents for every dollar they earn on interest payments, on the things that they finance. So if you look at this from another vantage point, they're saving 10 cents of every dollar. So they're taking one step forward because saving is a step towards progress. But they're giving away 34 and a half cents on interest payments. So they're going three and a half steps backwards because that money is leaving their family. Now next year comes along and they save another 10 cents. So they take one step forward, but they give away 34 and a half percent in interest payments, so they go back another three and a half steps. So if this is the direction of progress, if this is how, if this is the direction of progress, which direction do you think the family is going at? They're going backwards. They're not making any progress. And the reason why that is happening is because the family is familiar with the process of banking. They are just not controlling it. Someone else is controlling that function called banking in their life, and someone else is getting all the money. Hence, when I read the book and when I was in the chapter when Nelson says, you cannot get a better rate of return by investing into anything without first controlling the financing function, that is where it all clicked with me. Fast forward five years of implementing this process in my own life. I don't have to rely on banks for any major financing. I control all that in my own family. It took me five years because of my need for financing. My need for financing is different from your need for financing. Everybody's different. I hope you enjoyed this video, guys, but make sure that you check other videos on our YouTube channel, the bankers Vault, especially the video that Jason Lowe has, which is a master class on the process of becoming a banker. We're going to leave a link underneath the description of this video, so make sure that you check out that link and also make sure that you get a copy of this book and you'll be glad that you did. Thank you for allowing me to share.