Nelson Nash & The Canadian Infinite Banking Concept
Dan and Roman explain Nelson Nash's Infinite Banking Concept using a lottery-winner example to show why people lose windfalls. The core idea: you can become your own banker by controlling money flow instead of letting commercial banks do it, keeping wealth in your family rather than losing it.
Chapters
Very few people really understand how money works. And so what they end up with is to get a lot of money, they just think, okay, I just joined and they don't understand what they need to understand. Banking is a key business and money has to flow, it's got to be in motion.
The problem is that who controls your money, that's the problem. And how you are using your money. You're either controlling your money yourself or you're giving up control. Basically, if you have your own banking system, then you are in control.
Do you really understand the infinite banking concept? Well, if you do, you'll know why it matters. Today I'm here with my colleague Roman and we're going to talk about Nelson Nash and the infinite banking concept. And for all you Canadians out there that are just wondering what is up about this infinite banking concept? What is it that I need to know? We're going to talk about one page today out of Nelson's book. That's right, just one page. And if you haven't read his book, I highly recommend you get it. But in that book he unlocks the infinite banking concept. So we're going to look at page 11 and it's actually called Part 1, Becoming youg Own Banker. Right at the top. He says someone made the comment that if some authoritative power distributed all the money in the world equally among all the people in the world, within 10 years, 97% of all the money would be under control of 3% of the people. Now he goes on to say there's really no way to verify that. But you know, the one part that Roman and I thought we'd bring to your attention today is about most of us have heard about people that win the lottery. No, they win some big amount of cash in a lottery and we all know how those lotteries work. Here in Canada you get a tax free, woo hoo. Just imagine if you won $50 million. Well the ironic part is when they've done research on that, how many of that group actually don't have any money or very little money after 10 years. It's quite astounding.
Most of people who win lottery in five or 10 years and at the same level where they started, where they, you know, lived paycheck to paycheck and they actually end up broke and most, some of them also actually acquire some additional debt and they live in basically in sheds and have need now to apply for new jobs and stuff like that. So all the wealth that they possess now is gone and in someone else's hands.
Yeah, it's just ironic because we think about that and I've always wondered, why would that be? Well, if you just go back to what Nelson put in the start of this page, it's like very few people really understand how money works. So what they end up with is if they get a lot of money, they just think, okay, I just joined. And they don't understand what they need to understand. And one thing, and I'm glad you're here with us today because you know, if someone won the lottery and they happen to know and practice the infinite banking concept, well, would that ever put them in a great position? Them and not only them, but their families and the next generation of their family in a really good position and can just go on and on and on, built from there if they use the principles that Nelson teaches us in this book around the infinite banking concept. While we talk here about this particular man, and this is, you know, some of the things that I've learned to appreciate about him and you know, God rest his soul, I was really blessed to be able to, you know, meet this man a number of times and hear him speak. And he is the author of the book that we're reading from and it's all about unlocking the infinite banking concept. And Nelson was big, and I know Roman, you've heard this, but Nelson was really big about it all begins with the way you think. So in this page, page 11 of his book, he really asked us to start thinking about something. And one was right at the start. Why would it be that if all the money in the world was equally distributed, it would only be a short period of time where whether it's 3%, whether it's 5% or whatever that number is of the people in the world end up with the majority of that money over time. Well, that's an interesting thought. And I don't think he was too far off the mark actually because all we had to do is think about that lottery example as one indicator.
Nelson says perhaps some of the answer lies in the fact that most folks know next to nothing about the process of banking and its importance to their lives and their well being. And banking is the most important business in the world. Without it all business comes to a screeching halt. And I just wanted to expand a little bit on that.
So this lottery example where someone will receive a windfall of money out of nowhere without knowledge what to do with this money and they will just spend it all because they think that it is endless and they don't understand that even this huge amount of money has to work every single day. They think that it is good enough for them to have this money sitting in a bank. And then, you know, they can. Some. Some may invest in stocks and may, you know, start up a new business, but most of folks, they just spend the wealth because they don't understand the main principle of banking, which is money has to work. Money has to reside somewhere. And if your money is your lottery windfall of money, if you put it in a bank, guess what? You are not using this money. Your banker uses your money. While you think it is your money, it is essentially your banker's asset because your banker uses this asset as a great tool to make more and more and more wealth for them.
Money's always got to be in motion and without the motion of money, and that's why he went through, why banking is the most important business in the world, is because if you think about it, if the motion of money stopped, and banks are great at that, just like you said, Roman, they put money to work. They don't let it sit still. It's necessary in our world for money to be in motion. And really, you know, he's going to. You think about the essence of banking, and it's really that someone or some organization has control of a pool of money that can and must flow at a cost to meet some need. The other part that Nelson does a great job of speaking to is that there's only one pool of money in the world. The fact that this pool is managed by a number of institutions. Banks, insurance companies, corporations. Corporations and individuals and in various currencies across the world is irrelevant. Now, when you think about it, you know, you and I both, Roman, we travel to other parts of the world. We've been in different places. And I taken my debit card out and I put it into a bank machine somewhere and hey, I got the money out of my account that's here in Canada, and it comes out in the currency in the country that I'm in. And really, I know most of you have probably heard this, that the motion of money is following the sun. So as we're sleeping here somewhere else in the world, business is going on and money's always in motion. I remember I heard a CEO of a bank in Canada speak after 2008, and he spoke about how close they got to a critical line in their bank because of the economy come to a halt, money would stop moving and the government had to step in. Well, I don't know about you, Roman, but I really don't want to have to depend on the government stepping in. Thank goodness they did. But who's to say what they do next time? So motion of money, and there's that one pool of money, and it's all. What happens in the world impacts us all, is a real key factor. And, you know, and I think that's a key piece of this page that Nelson wanted everybody to understand when it came to the infinite banking concept. Banking is a key business and money has to flow. It's got to be in motion. Kind of leads me to a different thought. And you feel free to put your thoughts in too, as we go, Roman. But a lot of people say, well, you guys are bashing banks. No, we don't bash banks. We appreciate what banks have done and how they figured out. And we coach people that if you really understand what Nelson is trying to get us to know, he said, if you understand a problem, the solution will become clear.
The problem is that who controls your money? That's the problem. And how you are using your money. You're either controlling your money yourself or you're giving up control. Basically, if you have your own banking system, then you are in control. If you don't have your own banking system, then you have to use some outsourced bank. You basically put all your paychecks into someone else's bank because otherwise how can you receive income, right? And if you give up control this way, then someone has control over your money, which means this money is not sitting still for them. It is sitting still for me in my account, but for them it is an asset. They are using it.
That's really the essence of the infinite banking concept is how you bank. Teaching you that you could control.
The banking function as it relates to your needs.
It is all a matter of how much of the banking functions do you control as it relates to your needs. This book is all about how to create your own banking system so that you can control 100% of your needs. Becoming your own banker. This is the solution. Give it close attention and it can make radical improvement in your financial future. So like Dan said, we're not bashing banks. You know, we're still using banks for the convenience of debit. I, for example, like you know, getting my, you know, rewards on my credit card because I prepay my credit card and I get my, you know, rewards. I can use extra, extra money that I'm earning, but at the same time, I'm not keeping money in a bank anymore. All my paycheck when it comes in, then I take it right away and I put it in my own banking system. Why? Because I want to have control over my money, right? I want to be the banker in my transaction. Like I said, you are either giving up control or you have control and the money is working for someone who has control in your banking function as it relates to your needs.
We think about what we can learn from one page in this book and there's not a lot of, you know, actual words on this page because, you know, a good chunk of the second column is blank and. But Nelson has so much key information in there for us. And if there's one thing that we'd like you to understand today is that if you really understand.
The infinite banking concept, you'll know why it matters and if you really understand how the difference, the difference it'll make in your life over time. If you can control the banking function as it relates to your needs, it's like everything you do financially because it's always about compared to what everything you do financially after you get control will be radically improved from what the results you would have got before without controlling the banking function. We're just going to encourage you like we've got a lot of great content on this channel where you can learn more. You can learn more than just page 11, but I'm going to tell you, get the book, read page 11 and take your time and understand what Nelson was really trying to explain to you related to the infinite banking concept. And once you get that, then it'll start to become clear. Remember, the problem is banking and the solution is banking. We're going to encourage you to do one other thing today. Now you're going to see a link and it's called watchibc.com that will take you to additional information about this infinite banking concept and help you get a better view than what Roman and I could give you off of one page. And I'm going to just encourage you to go there. It's a great resource along with all the other content we've got. Those are the things that do it and I just encourage you to do that and learn a little bit more.
