Keep The Money in Your Family

And think about this as it relates to your own family banking system. If she was taking policy loans and not repaying them and putting the inventory, not putting it back on the shelves, well, what are the rest of her children going to do? They're going to mirror the behavior. So you want to make sure that you're teaching your family how to be a responsible business owner. Because when you put a policy or system of policies in place, you're starting a new business where no business has existed before.

The golden rule, which is those who have the gold make the rules. People have abdicated their responsibility and opportunity as it pertains to the banking function in the economy. They are depending on someone else to perform that job. And that character in the play is making the most of the money. The person on the street in Canada today understands the subject so poorly that he's doing the equivalent of, of living off of a lung and heart machine. And what I want to talk to you about is how to create a system in which you can control everything about the banking function as it relates to your needs. This amazing book, over 500,000 copies have been sold and it's becoming your own banker. Now, this particular book changed everything for me.

And I'll very candidly share. It's a 92 page ready. It took me about an afternoon to read it. Now I went through at the time not once but also twice because I was really surprised how a simple book like this could change my life. Now this book will change your life and I promise you that. Now in our organization at Ascendant Financial, the way we operate is that we have an expectation that anyone that we find a basis to work with has to read this book. And there's a reason for that. And the reason is really simple. It's because it works. This book is going to be working with you and expand and you know, we're going to be, it's going to be expanding on what Nelson shared in the book because the more that you see inside this book, the more you will see that you didn't see. There's always something new to learn. The messages that are in there at initial glance may not be something that you are able to see and receive at the time. Sometimes the messages are quite dense that I may not even, you know, again, I may not be aware at that time. So I just wanted to share with you. When we coach and work with people, we, we always refer back to this book. We are continually expanding our knowledge and our awareness of the process because we're learning from People who, who began their journey before we did. And so we want you to have this book and we want you to read it. And your advisor is going to have an expectation that has happened in order to help you establish a basis to work together. Now, the first principle that I just want to make sure that we know is that you finance everything that you buy.

You either pay interest to someone else or you are giving up the interest you could have earned otherwise. There aren't any exceptions to this. And the whole idea of all of this is to recapture the interest that one is paying to the banks and finance companies for the majority of items that we need during a lifetime. And the objective is to keep the money in your family, in your system. So the question is.

How much of the banking function do you control as it relates to your needs? Your money must reside somewhere.

Someone must perform the function of banking in your life, and that should be you.

And before you go through thinking, I want to make sure that you know this process is not an either or or type of thing. Becoming your own banker is not about addressing the yield of an investment. It's all about how you finance the things you need in your life, which can certainly include investments. I want to talk a little bit about getting into the grocery store business. Now for some of you where this is your first exposure to the infinite banking concept. For Canadians, you might be thinking, gosh, why is it that, why is there a grocery store on the agenda? Why would we want to talk about that? It's so relevant to the process that Nelson often said that if you understand the grocery example, and he did a real good job explaining it in his book becoming your own banker, if you truly understand the grocery store example, the rest of becoming your own banker is a piece of cake. And so let's dive into it and let's see what aha moments come up for you as we walk through this particular example. So we're going to get consider a business, and I'm going to put all of you into the grocery store business. Now, when you want to enter into a new business, you have to take some time to study the business. You have to take capital and invest that capital to get the business off the ground. But I want you to consider that the grocery store business is a business in which you are a captive customer. You have as well as because everybody uses groceries and you're both the consumer as well as the seller of the product. And your market is unlimited. And someone has to perform this function of the distribution of the groceries. Studying the business for two years. You're going to purchase a superior location, location, location, location. You want to build an attractive building.

And you want to stock it with high quality merchandise. And afterwards, you're going to recruit some great team members who can take care of customers and take care of keeping the shelves stocked with inventory. Now, up to this point in the grocery store, I want to make sure, I want you to understand, in order for the business to make money, in order for the business to be profitable, we actually have to turn over the inventory. So when we buy milk and the bread and the butter and eggs, all of those are consumables, we have to keep that turning over and over and over and over so that the business can actually be profitable and make money. Well, when it comes to the grocery store, I'm just going to share with you that you must turn the inventory 15 times just to break even. You have to turn it 17 times and it'll be profitable. Now, if you can turn it for 20 times per year, you can retire early.

So every time you're turning the inventory, you've got to stock the shelves with inventory. And just like the banking system now, you've got to fill those shelves up with money. Otherwise nothing happens. If, if money is not going into your grocery store, there's no inventory for you to draw on. And the more capital you put in, and the more you turn that money over, the more profitable you are going to be. So let's kind of dive into that visually. Again, I just want to want you to think up to this point in getting into the grocery store business, you bought the location, stocked the shelves, hired the team members, put the cash register in place. You haven't even opened the doors yet to your store. How much money have you actually made? I think you wouldn't be surprised if I said you didn't make anything. Well, you invested the capital, you invested the time and the energy, and at this stage you don't make any money because you went through what's called a period of capitalization. And so before now you, you're ready to open the doors to all of these captive customers that want to purchase groceries from you. And I'm going to use an example and it's going to be a can of peas. So let's presume for a moment. We purchased this can of peas and we sell it at 60 cents retail.

But we purchased it for 57 cents. So we're going to make 3 cents on every can of peas that we're selling. So the more we turn over that inventory of peas, the more money we're going to make, the more profitable we're going to be. Now, I want to envision, to. I want you to envision for a second, and I wanted to ask you, based on what you are seeing right here, if you are the owner of the store, would you buy peas from the front door or would you buy peas from the back door? I want you to think about this every time you sell a can of peas. So the first part is actually knowing that if you owned your own grocery store, would you go shop at another grocery store? I think most of you would say no. You would buy from your own grocery store. Well, also from that standpoint, if we were to go to buy the peas.

From the back door, well, we need to sell 20 cans of peas just to make up for the one that walked out the back door, because we paid 57 cents wholesale and we. And we could have sold it for 60. And when it goes through the front door, there's no money going into the cash register. Now, this is a description of what happens in so many businesses. And if you really want to understand this more deeply, just make friends with someone who owns a retail store or make friends with somebody who owns a grocery store and ask them to talk about employee theft. Because the majority of theft from these businesses internal, it comes from employees and the owners. Because imagine for a moment if the employees saw the owner going out of the back door for the can of peas. Well, the employees are going to do and mirror and do what the owner did, which is the same behavior. And think about this as it relates to your own family banking system. If Jingen was taking out the P's out of the back door, and so if Jingen was taking policy loans and not repaying them and putting the inventory, not putting it back on the shelves, well, what are the rest of her children going to do? They're going to mirror the behavior. So you want to make sure that you're teaching your family how to be responsible, responsible business owner. Because when you put a policy or system of policies in place, you're starting a new business where no business has existed before. And to kind of share in the central message is, I want you to realize I don't want you to steal the peas. You want to get that money into the banking system so that when you use it, you replenish the shelves. You can sell more inventory to captive customers who need access to it. Think about this as the owner. Rather than putting 60 cents into the.

The cash register, you put 62 cents in it. So you put a little bit more money into the cash register than what a customer would pay retail. That's going to supply your business with more rocket fuel, more capital. And as the owner of the grocery store, what you can do with more capital? Well, you can purchase more canopies and you can stock more shelves. And personally, I've never met a successful grocery store owner. Funny enough, my father in law has a grocery store on young who would complain about having more shelf space to be able to put more product on it to sell more. So you've got to think about the grocery store example as you're implementing this process in your life and remind yourself you don't want to steal the peas. And Nelson would also share. Once you understand the grocery store example, the rest of becoming your own banker is ridiculously simple. Don't steal the piece as you build a policy or you build a system of policy and you get to your retirement years. Let's say for passive income cash flow time, if you've been replenishing the shelves with your money, you'll have a larger reservoir where you can clip bigger coupons in retirement, you can take more capital in your passive income phase rather than having it tied up somewhere else because you've been stealing the peas and you want to have a business that's a lot more valuable when it comes to selling it. I mean, meaning when you die, there's going to be a lot more money coming back to the family to replenish the shelves with more cans of peas or, or even possible expanding to more locations. And one of the things I will just also leave with is what Nelson said is wherever wealth resides, someone will try to steal it. And so for all of you, again, don't steal the piece.