Lost Opportunity Cost In Canada (OUCH)

We've got enough stress and pressure out there. We certainly don't need it in the financial area of our life.

So relieve that stress. Become your own banker. This process is not an either or. Becoming your own banker is not about addressing the yield of an investment. So this is not, hey, should I become my own banker or should I buy a bitcoin on the dip? Should I become my own banker or should I invest in that real estate opportunity that tracked me down? Should I become my own banker or should I put my money in gold and silver? This is not an either or. The process is an as well as.

Now, the very first principle that must be understood is that you finance everything that you buy. And repetition will be our best teacher. Today. You either pay interest to someone else or you give up the interest you could have earned otherwise. There are no exceptions. Now, people may have heard the terminology lost opportunity cost. So, for example, if I take money that I've earned and it is deposited onto the books of someone else's bank, and then I save a portion of that money on the books of someone else's bank and I pile up $10,000 in savings, the bank had total and absolute control over the use and liquidity of that money the entire time that it was being saved. So I gave up the motion of that money so that the bank could gain the motion of that money. When I'm ready to go buy that $10,000 item, I withdraw the money from my savings and then I transfer it onto the books of someone else's bank. Because the retailer or the business or the person that I purchased that thing from, they take that $10,000 and they put it on the books of someone else's bank. I can't earn interest on that $10000 ever again. My children can't earn interest on that $10000 ever again. I can't use that $10000 ever again. It's a permanent transfer of money away. That's called lost opportunity cost. You made a decision financially and you lost the opportunity to earn interest on that money for the rest of your life and every generation that comes after you. Now, some people pay lip service to the words lost opportunity cost, but I've seen very few people who are not working with us, I've seen very few people actually reckon with it. Now, when you embrace this process of becoming your own banker, I promise you that whomever you're working with, the right person on my team, they're going to help you reckon with it. And it is going to create a significant financial Advantage in your family or in your business, or both, dependent upon which areas of your life you're implementing this process in. The whole idea of the process of becoming your own banker. The infinite banking concept for Canadians is to recapture the interest that you're presently paying or that you would otherwise pay in the future to banks, to finance companies, to credit card companies for all those major items that you need throughout your lifetime. And the objective is to keep that money in your family, to reverse that flow, change the flow so that the money's not being transferred away from you, away from your family, away from future generations, but that flow is being changed and the money is actually flowing back to your family so that you continue to control the use and liquidity of that capital, and then your future generations also control the use and liquidity of that money. The question is, how much of this function do you control as it relates to your needs? Without a doubt, I would say to you that knowing that your money must reside somewhere, without a doubt, you've all made choices in where your money has resided up to this point in your lifetime. It could be in a piggy bank, it could be in the mattress, it could be in someone else's bank, it could be in the form of a whole variety of financial instruments.

The fact is that your money has to reside somewhere. And if you think about all the money that you spent on everything up to this point in your lifetime, I want you to just take a moment and process that in your mind's eye. How much money have I spent? How much money has flowed through my hands up to this point in my lifetime? Could you write a check to me for that amount today? The answer is no. Because you did all the work to earn the money and everyone else got it. Someone has to perform this function of banking in your life and it should be you. And the reason that I continue to emphasize this is because unless you develop an understanding of the problem, because everybody here today has a varying degree of financial awareness, financial experience, financial knowledge, but you all bank, every single one of you.

And until you develop an understanding of the problem, which is someone else and some other organization is performing this function for you, the solution of becoming your own banker just won't matter to you.

This is not about.

Hey, you should embrace this process so that you can do XYZ financially, whatever it is in your life.

You should embrace this process because it solves the problem.

And it will transform things for you financially and it will help you to create your own peaceful, stress free way of life financially. We've got enough stress and pressure out there. We certainly don't need it in the financial area of our life.

So relieve that stress. Become your own banker. This process is not an either or. Becoming your own banker is not about addressing the yield of an investment. So this is not, hey, should I become my own banker or should I buy bitcoin on the dip? Should I become my own banker or should I invest in that real estate opportunity that tracked me down? Should I become my own banker or should I put my money in gold and silver? This is not an either or. The process is an as well as.

I should become my own banker as well as take advantage of opportunities that track me down.

The function of banking, the process of becoming your own banker is all about how you go about financing everything that you need in your life, which can certainly include investments. But this is not about addressing the yield of an investment. You'll make your own decisions on investment opportunities that track you down. If an investment opportunity tracked you down today and you decided that you were going to take advantage of that opportunity, I want you to envision, you're seated right next to me across the table signing the document for that opportunity.

And I want you to envision for a moment that you've become your own banker and, and I have not.

And we sign off on that document. You've participated in the opportunity, some form of investment, whatever that is, and I've participated in the very same opportunity. We put the very same amount of capital into the very same opportunity because you have taken control of the banking function. If we both earned the same investment yield on that investment opportunity, you will have come out farther ahead than me. You cannot get a better rate of return doing anything without controlling the banking function as it relates to that thing that you're setting about to do. Now, I do want to talk about getting into the grocery store business. This example is by far one of the best examples in Nelson Nash's book, becoming your own banker. And I want you all to envision for a moment, I'm going to put you all into the grocery store business. Now, I want you to consider that this is a business in which you are both the consumer as well as the seller of a product. Everyone eats, everybody needs groceries, and so your market is completely unlimited. Now, someone has to perform the function of distribution. So when you need to purchase food for your family, you're likely going to the grocery store to do that. And so someone has to perform that function of distribution of the food. Now we're going to study the business for a few years. We're going to purchase a superior location. We're going to build an attractive building, we're going to stock it with high quality merchandise. We're going to hire great people to help us serve our customers and to run the business. And I want you to ask yourself up to this point.

So we haven't even opened the doors to our grocery store yet. How much money have we made? Go ahead and type in the chat window now. We had to invest. We had to invest time, energy, money. If you're looking at getting into the grocery store business, you have to be comfortable going through a process of capitalizing. In other words, you need capital to get the building constructed, to get the shelving put in, to get the operating systems put in your cash registers. You need the capital to go and buy your first, you know, round of inventory. And you have to be really well stocked, otherwise people won't want to shop there. So your ambition as a business owner is to put money in so that you can get money out. Isn't that an interesting.

Approach? So when you think about embracing this process of becoming your own banker and implementing the infinite banking concept for Canadians.

You'Re going to have to put capital in in order to get more capital out. And so I want you to understand that this is a business. You're going to be creating a business where no business existed before, and you've got to treat it as such. If you truly wanted to get into the grocery store business, you're not going to go visit your commercial bank and say, hey, I'm here to get the keys to my grocery store. Where do I sign? I just want to go and unlock the doors. And it's fully stocked and customers are lined up around the block and I just want to take it over. That may be the case if you want to buy an established grocery store from someone, but you need capital to do that. Capital, capital, capital. And so this is going to require capital in order for you to start and crank up your own banking business. Now, going back to the grocery store for a moment, if the inventory sat still on the shelves, a, it's going to go bad, and B, the grocery store is not going to make any money. And so you have to turn over the inventory 15 times in one year just to break even.

You turn it 17 times and you'll be really profitable. You turn it 20 times and you can retire early. Think about this as it relates to money and the banking business. If banks let money sit still, the entire financial system would collapse. Banks have to keep money in constant motion. So if you become your own banker, you don't want to let capital sit still. You want to create motion. You want to create velocity. You want to turn the inventory so that you can create financial abundance. And for some of you, retire early. Now, let's look at this amazing blueprint of our grocery store. And we're going to really boil this down here. I'm going to examine just a single can of peas. Now, I want you to imagine for a moment that we purchase this can of peas at wholesale, and we purchase it at wholesale for 57 cents. We sell it at retail for 60 cents. And so we made a whopping three pennies on that can of peas. And if you're the grocery store owner, so you're the one who calls the shots, you're the one who's in charge, and you need food, you're likely going to get that food from your own grocery store. Now, being that you're the business owner, you're the one who makes the calls and the decisions, I'd like to know if you would take your cart of groceries out the back door because you're the owner, or would you go through the front door and pay retail just like everyone else? If you took that cart of groceries out the back door because you're the owner.

Your employees are going to observe that behavior, and then your employees are going to start mirroring that behavior. If you were to consult with anybody who's in retail or the grocery store business, they will tell you that the percentage of theft that is the greatest is internal. It comes from owners and employees. If you think about this as it relates to your own family banking system, if you're accessing policy loans from the life insurance company to finance all those things that you need throughout your lifetime, including your personal overhead, your groceries, etc. And you're not putting money back into your system, that's the equivalent of taking the cart of groceries out the back door. You're stealing from your own business.

And if your family members see you doing that, then they're going to mirror that behavior and do the very same thing. And it won't be long before you no longer have a business. And so we're going to equip you with the knowledge and with the tools to enable you to decide. Are you going to go out the front door? Are you going to go out the back door? Now, let's presume for a moment that we made the right decision to go out the front door to pay retail, just like Everyone else, well, we're going to put some profit into the cash register and that's going to be very healthy for our business. If we made the decision to go out the back door, how many cans of peas do we have to sell just to make up for the one can that went out the back door? You've got to sell 20 cans of peas to make up for the one can that went out the back door. And we're dealing with pennies here. Envision for a moment you're in your own family banking business and I want you to add a few zeros to those numbers. So becoming your own banker means that you're creating a business where no business existed before and that you have a responsibility to turn the inventory, but to also operate the business by making the right decisions and making sure that you never steal the piece.

Don't ever steal the piece because you're going to have to do a lot of work to make up for the theft from your family banking business. So don't allow any family member or anyone to steal from the family banking business. Don't steal the piece. Now, let's imagine for a moment that we put a few more pennies into the cash register than the retail price of the can of peas. So rather than put 60 cents into the register as the owner, we went a step further and we put two more pennies into the cash register. Well, that's going to give us more capital to buy more cans apiece to sell to more captive customers. So when you think about your own family banking business, if you're accessing policy loans and you're repaying those policy loans with interest, you co own the life insurance company. Why not put a few extra pennies into the cash register so that the life insurance company has more capital to lend out to more captive customers. What's that going to do to the number of times you turn the inventory over? It's going to accelerate it. What's that going to do to the profitability of the business? It's going to accelerate it. What's that going to do to your financial abundance? It's going to accelerate it. So remember, don't steal the piece and don't be afraid to capitalize your system. Don't be afraid to put capital in because you're cranking up a new business where no business existed before. And Nelson said that once you understand the grocery store example, the rest of becoming your own banker is ridiculously simple. Don't steal the peas.