Finance EVERYTHING You Buy In Canada

The very first principle that must be understood is that you finance everything you buy. There are no exceptions. When we are spending cash, we're not just that we're losing that amount of money that we spend. What we are also losing is also that money could potentially grow. We also lost the potential growth of that money for the rest of the our life.

Hi, my name is Jianjian Fang from Ascendant Financial. You are missing out on a ton of cash. Today. I am going to tell you why and what you should be doing. The very first aha moment when I learned about this wonderful process called becoming your own banker is really about the first principle that Nelson mentioned in his book becoming your own banker. Nelson said the very first principle that must be understood is that you finance everything you buy. There are no exceptions. You either pay interest to someone else or you give up the interest that you could have earned otherwise. Now when we talk about finance and Nelson mentioned that we finance everything we buy, every dollar that we spend is is a kind of financing. Well, is there a problem that when we spend cash or in terms of moving money from our checking account through E transfer or through a payment to our credit card or anything, is there a problem when we spend cash in any other form, the amount the number in our checking account goes down, is there a problem? You know I work hard for my money, right? I work hard and I save them in my banking account. What's wrong? When I spend it, I earn it so that I can spend it. That was what I was thinking before I get to know the concept called becoming your own banker. Because I am a depositor, I'm always a depositor to someone else bank. Even though it is my banking account and being in an Asian background, my upbringing, my parents always educate me saying that well, when you need to borrow money, you have to spend interest, you have to pay interest, you have to pay to access someone else money. So I understand that part, the pay up part. I understand when we need to use someone else money, we have to pay interest. Sometimes we have to work with a payment plan and that is usually a amortization plan which means we have to pay interest plus principal and for a certain period of time we are going to pay up our money and we are free. We no longer need to pay interest anymore. So that I'm always thinking that okay, it's good for me to save because if I save enough money then I can just spend it without accessing to someone else money. So I never see there is a problem when I'm spending My cash. So I always save up my money and then I'm going to spend it because I'm not paying any interest to anyone. But what happened when you spend cash, you are missing out on a ton of cash when you do that. When Nelson mentioned that they are no exception. For every dollar that we spend is a kind of financing. I want that to sink in. Why is that? I work hard, I save my money and I spend my money. What's wrong with that? Well, the question I wanted to ask you is for every dollar that you spend, are you able to reuse any of that money? No. When you spend money, the money is forever transferred away from your bank account. Is there another better way? Now you need to find out. There is a problem because when we're spending cash, we are giving up the opportunity cost. That money could have earned money for us because it's gone now. A lot of you might heard of the story that about compound, right? A penny double every day. And if you wanted to watch that, we have on demand training for the process of becoming your own banker where you can access from our banker's vouch channel. You can also go to watchibc.com to find out more about what Nelson's teaching regarding on this concept why we're either pay up or give up. Now this graph resonated with me a lot when I read this. Now this is a very extreme example. It talks about if we can double our saving every day, which almost impossible today. From the very first day we save one penny and the next day a penny doubles and the third day it doubles again. So a penny become two pennies and then four pennies and we just continue to go on. And my question is how long does it take for us to accumulate $20,000 from a penny? If it doubles every day, it takes.

All the way to 22nd date. It needs 22 days for a penny double every day to reach the $20,000. But the question is I have to spend money in my life. I have to, I have a needs of financing at 22nd day. I have to, for example purchase that car for $20,000. For example, I have to pay for my children's education at the 22nd day. So what happened to that day when you wanted to use the $20,000 from your bank account? Most of us has to take the $20,000 out. But when you take the $20,000 out, what was happened on the 23 day, the 23rd day, you're back into saving one penny again. And if we go on that.

On the 31st day, we're back to the dollar and 56 cents. This is a problem when you spend cash from your account because what you did is you permanently interrupted the compound growth of your money. So you're not just spending $20,000, but what you're spending is also the $20,000 compound growth for the rest of the days. You never made it to the 31st day. What would happen if you could keep that $20,000 in your bank account? Now, the next day you can earn another $20,000, right? On the 23rd day, you will be able to double again where you get another $20,000.

And until the 31st day, now you have $10 million.

And more. So why do we want to spend cash now? This is a very extreme example that we are not always able to double our savings because we cannot get doubled every day in this example. And every day is a very extreme example. But the thing is, we always have a need for using cash. As long as we live in this world, we need to finance things, we need to spend money, we need to pay our bills. Spending cash is inevitable. We have to spend money to achieve our financial goals. We need to spend money to get access to all the things that we need in life. But what happened when we're spending cash, we really have to look at that as when we are spending cash, we're not just that we're losing that amount of money that we spend. What we are also losing is also that that money could potentially grow. We also lost the potential growth of that money for the rest of our lives. So is there a better way for us to spend? So realizing that when you are spending cash is also a kind of finance is really important because what if, if on the 20th day I can access this $20,000 from someone else without interrupting my money, then if I'm paying some interest to access money, is that okay for that one day? Yes, because the next day I would get a lot more. So that's also the reason behind why you want to become the banker in your own life. Think about who would understand compound growth the best. So the question is, on the 31 day, do you want to have $1.56 or do you want to have $10 million? The difference is very obvious. That's why it's okay at sometimes to access someone else money to be able to achieve your financial goals. So think about if you have your own banking system where that you can never interrupt your compound growth. You can have your money green dotted line that continue to grow when you have to access money that you are able to access your money still, but you're not interrupting the growth of your money. And eventually, when you pay back that amount of money that you purchased, and you never interrupted the compound growth of your money, but you can still achieve your financial goals through your own banking system. And that is the beauty of becoming your own banker. If you want to learn more about becoming your own banker and the infinite banking concept, Please go to watchibc.com or purchase this wonderful book called Becoming your own Banker. You will not regret it and you are not going to miss out a ton of cash. Thank you for watching.