From Sacrifice to Success | How the Capitalization Phase Can Transform Your Financial Future

All you have to do in order to build your wealth is put money into the system and let the system do the work for you. And then with time and patience and the discipline of putting that money every year, you will reap the rewards later on.

So today, Tran and I just thought we'd take and flip open the book called Becoming youg Own Banker. And hey, and if you don't have that book, you got an opportunity. So we flipped open the book and we got to page 26, which is just a review of part one, the but we thought today we'd speak about the review of capitalization. So what did Nelson say about capitalization?

Trent it is going to take time and discipline for several years. Don't expect to get rich overnight, but the rewards later on are worth all the effort.

Well spoken. Kind of review of some of the elements that Nelson went over in that first part. As you were speaking to that, my mind went to how does it work now? Most of us are pretty used to instant gratification. Like we do so many things where we just want it and we want it now. And if you think of how things have changed over time, even with technology, you know, it used to be you'd take a picture and you'd have to wait till your film was full, and then now you just snap a shot, you look at it. Was that good enough? No, I'll take another one. So we've got pretty used to things just being bang there. They're just right now. And yet, you know, when you think about capitalization, and I just remember Nelson speaking to it when he was with us on this good earth, and he would just say, a lot of people don't realize how key capitalization is. So what are some of your thoughts around capitalization? Ferran?

Yeah, my thoughts around capitalization. Whenever I read this and whenever I think about capitalization, I think about how wealth is built. And from the research I've done over the years and from studying the greats like Warren Buffett, Jeff Bezos, Elon Musk, Steve Jobs, these are people that got wealthy over a period of time through execution, through discipline, through, you know, taking their time with what they were doing, not trying to get that, what they ended up getting within a day. For example, Warren Buffett, it took him years to get to a level of being a billionaire. I think it was in his 50s or 60s. Right. It took a while to get there. And so I view it from that angle. If you're looking to build wealth, it takes time to get there. And building wealth is not the same as taking a picture. And you have the picture right away in a second. Right. It takes time. And so you have to develop that mindset and you have to be willing to wait to receive the rewards. And that's what I think about when I read this statement here. And most people are not willing to wait. And in the case of becoming your own banker, the infinite banking concept, all you have to do in order to build your wealth is put money into the system and let the system do the work for you. And then with time and patience and the discipline of putting that money every year, you will reap the rewards later on.

Yeah, and I think you spoke to some really key things there, Tran. So if you think about time, this is one of the things I always think about is if. When it comes to behaviors that are going to make a difference for you financially, I think most people are aware that if I want to change something or if I want to have money for tomorrow, I'm going to have to have some way to get that outcome. So people are saying, yeah, it makes sense if I set aside a portion of the income, whether it's T4 income or whether it's business income, to, to put it where it's going to grow at a place where it's safe and where I can access it. And I think of all kinds of books that you could read about that. I just go to the profit first book. And that's where businesses have to have that. They teach that mindset for businesses that you take your profit first and then you learn to operate your business on what's left. And that that is the same whether you're a T4 employee or not. I say, you know, one of the things that I learned in life that I'm glad I learned is that pay yourself first. Don't just spend everything that you got coming in. Because if you do that and it's really easy to do that, you think out five years. Are you going to be in a better position if you follow that behavior? Well, no. Nelson made it pretty clear capitalization phase is critical because your need for capital is going to be greater as you go through life. It's going to keep on growing. You're going to need more capital as you go through life. Just think about all, all the money that flows through your hands. Well, how do you take and change the environment for. From a place where you're dependent on someone else to provide money if you need to do something, to where you can build your own access to capital that you can get well, it's going to take time. And that's why I love his one golden rule, which is think long range. He's coaching us. He coaches right from the start. This is something that takes discipline to get it done.

Those are some really great points. And in order to stay disciplined when it comes to becoming your own banker, you don't need to be a genius to do it. You just simply have to figure out how to put money aside into the system.

That's what I love about this process, Taran, is it's someone like you say, starts to implement it, starts to do it at a level they can where they just get committed to it and they say, I'm going to do this, I'm going to do this. Because I know once I do it over a period of time and 10 years goes by extremely quick. It's all relative to the age you are. But the older you get, the quicker time goes by. And so I probably have a different perspective on than you, Tran, on how fast 10 years goes by. But it does go by very quickly. And if you start something like you were Speaking to In 10 years, you're going to make a huge difference financially to the capability that you have in life. And that's what I would encourage people to do.

Yeah, absolutely. And for those wondering what is the system you're talking about, right, becoming your own banker, check out our on demand training here@watchibc.com and you can learn more about what exactly this system is and how you could implement it into your own life.

Yeah, exactly, right. I would encourage all Canadians, if you don't know about this, a get a copy of the book pointed up later. It's called becoming your own banker by Arnoldson Nash. If you know about this concept, we're going to tell you, be prepared to capitalize. If you do capitalize, you're going to put yourself in a different position than everyone else around you because you have access to capital.