Paying Off $70,000 of DEBT by Christmas Challenge! (Part 2)

Beautiful day here in Calgary. I'm super excited because I'm about to have a really great conversation with my brother in law and we're going to find out some specific numbers in terms of what we need to produce out of the family bank to actually recapture the vehicle debt for his truck. So I'm super excited. We're about to call Ford and we're going to give you an exclusive look at an in depth look again at the family banking system and how we run things. Some of the goals that we're trying to achieve with our family bank because you know, I've been at this for about six years now and the primary focus in the beginning was to build up our system and control the financing function as it relates to our needs. What I call the core four, my wife and my two kids and myself. And now we are expanding the system, we're ensuring other family members and we are working together to divide and conquer to control the financing function as it relates to the entire family's needs. We're all making these payments already as it is. The payments are already leaving the family. So if my brother in law is already making a payment to Ford Credit Canada, what's preventing us from building our banking system, deploying the capital, paying off for it and then recapturing those payments in our own system so that we can continue to pile that up and then look for opportunities to increase our cash flow. That's the main objective. So control the financing function first and then put money to work to create more cash flow. Put our money to work so we don't have to work as hard. That's the idea. We're doing this and you can do it too. Canada.

Hey Canada. This is video number two in the series of me and my family paying off $70,000 of debt to by Christmas of 2023. So one of the major objectives that we talked about was getting rid of how fun are car payments. Do we love car payments?

Oh, I love them, yeah. No, car payments are. I mean a payment's a payment, right? It's. What are you going to do? Are you, Would you rather give that to Ford or would you rather put that back into the banking system?

Exactly.

Banking system, right, Exactly. I mean how terrible is it that you get to choose your own payments? You know, you get to create a payment plan that works for you financially, not on Ford's plan. Right, exactly. The money you put into the system, you know, something else comes up where you need to leverage or use it again. You can versus Ford. You give it away, you don't ever see it again. Yeah, right. It's gone.

And you're, you're always, you're always forced to go back and work really hard to make more money because your money's not actually working for you. It's working for somebody else all the time.

Absolutely. Absolutely.

I was chatting with Evan earlier, and I wanted to have a bit of a roundtable discussion, like, as a family, about not only, like, what are we doing right now, what are some key objectives that we want to accomplish right now, but then obviously working together as a family as other people's liabilities continue to come down and our system continues to get stronger and we continue to add more policies, we continue to have meetings on a regular basis to say, okay, where's everybody at? What cash can we deploy? And okay, let's say we eliminate another car payment out of the family. And then let's just say, for example, it was like 40 grand, 30 grand. You put in 10, I put in 10. Evan puts in 10. Let's say the payment was 300 bucks just to keep it real easy. That means that 100 bucks goes. Flows literally back. It's flowed all back to this family system, but 100 bucks would flow back to his program, 100 bucks would flow back to your program, and 100 bucks would fall back to my program. And then we just keep coming back, and as the system keeps growing, we just keep redeploying the cash. Right. And once we fully control the banking function, we can then start looking at opportunities to generate passive income. And then we can start looking at deploying the cash to build our, like, our property where we actually. Then we're all getting freer faster. Right. That's the whole objective. So speaking of which, car payments suck.

They do.

Especially when they're a thousand bucks a month.

Yeah, they get a little pricey, don't they?

Right. It's a big payment. So we can look at. There's some key objectives that Evan wants to get done. And we're going to look at, you know, what do we have available in the system to do that? And if we don't have the capital available in the system, then we all come up with a plan of going, okay, I can set aside X amount of dollars per month. You can set aside X dollars per month. And we just cart build it up in the system and then deploy it. Right. Like, we just, we just gotta get these objectives accomplished. And if they're that important, you make time, effort, and money for what's important. Yeah, right.

Absolutely.

One of the key things is cause it's kind of low hanging fruit. The balance of the vehicle is not super scary, but the payment sucks. So one of the things that we can do is we can figure out, okay, here's the capital available to pay off the truck and then we can restructure the loan because we control it now. So if that payment is tough, then we'll just, we can just, we could scale it down, you know what I'm saying?

100%. In fact, what I was thinking was I'm going to pay a thousand, thousand dollars anyways. And I'm used to paying the thousand dollars. Right. Why not perhaps drop that payment to something that's a little more affordable, like 4, 600 bucks. 500 bucks said take the difference and reinvest it into another policy.

Recapitalize.

Yeah.

Okay, I like it.

You're gonna spend the money, you might as well use it to grow. Right. And keep growing it.

And like you said. Okay, so let me get this straight too. Let's just be even. Even. So say it's a thousand. Yep. I cut that in half. Yep. Because we can restructure the loan. We can spread out the loan to what? To meet whatever our cash flow needs are. We can do whatever we want with the repayment back to the system. The life insurance company is never going to call us and say, oh, $500 a month. I don't think that really works. Well, guess what? That's up to us. We own the system and we co own the life insurance company. So we dictate the terms on all those payments. Right. So what you're saying is, okay, so we restructure it, we flow 500 back to the system. Yep. And then we take the other 550 and we actually create a new policy. You use the term invest, which I get that. But keep in mind folks, there's a key difference between investing money and saving money. What we're actually doing is we're building capital in a guaranteed vehicle. So we're not investing money. That risk is on the insurance company. We're capitalizing the system. And it's really this simple. A lot of times people come to me and they say, hey, what's like a minimum? What's an average? How do I get started? This process is very simple. The more energy, the more fuel that you put into the system, the more energy the system will kick out to you the more you have available to you. So it's not about how much should I put in? What's the minimum? Where Do I get started? You need to get clear about what your financial DNA looks like, which a coach will help you with that, but you get to build the program to meet where you're at versus, hey, this is what you have to do. Right? It's all about where you're at. So with that said, we can then actually customize a new policy where we would deploy that cash inflow back to another policy and expand the family system even further. So, to your point, the money's already being paid. Now we get to recapture that and actually put it to work.

See the smile on the face?

Oh, I love that. I love that. There it is. Getting a really good look at my beautiful home and this awesome truck that we are going to transform from a liability into an asset by controlling the financing function and implementing the family banking process. So super, super stoked about that.

Surprise.

I will. I'll call Ford.

Here we go. This is it.

All right.

By the way, you've done a great job with the. With the place. I really like what you've done. Oh, thanks. You were saying to me before, like, dude, I don't want to go in the truck. It's a mess, but it looks.

Well, it's still. I got all my work back here and. Oh, well, that's called elbow grease, man. Some. Some love and care, right?

Working hard. Working hard.

Absolutely. Working hard. From my baby, you know, this is it. This is my portable office.

Hey, man, this is all the business happen. This is a pretty.

That's why it's an important asset, you know, that's why I'm super excited about what we're about to do.

Well, wait a minute. This is a pretty important liability that we are going to transform into an asset, because remember, the asset is the stream of payments that the bank is presently taken out of our family's pocket. So we want to be able to absorb that asset within our own banking system so that cash flows back to the family. That's what we want to do. So.

To better use.

Yes.

Good catch. Okay, so here we go. It's on the speaker phone.

It's on speaker. Here we go.

Yeah. It flips over to.

We're getting ready to call Ford right now.

Please hold while your call is transferred to a customer service representative.

We did it.

Please remain on the line and your call will be answered in the order it was received.

Nice.

Put a time clock on this.

And 20 minutes later, one eternity later. We only have a few minutes before my next meeting starts, and all of their representatives are currently assisting other customers. So see how that goes? That's like what I say to clients. I go, operational cost for them. Exactly. It's something to think about, right. When, when I call the mutual insurance company and I have a question to ask.

Yep.

Not always, but generally my hold time is like 10 minutes. Yep, no big deal.

Then you get an operator or you.

Get something, get an actual human being. But then if I call one of the stock companies, you better clear your schedule.

Oh, really, that bad?

Oh my gosh, I'm telling you, I literally sat on hold with one of these companies for 90 minutes and I kept looking at the clock and going, you got to be kidding me. The guy gets on the phone, finally I go, listen, can you please take my number? Because if we get disconnected, man, I don't got another 90 minutes for you. He goes, oh, I can't call you back. Like I'm not allowed to.

That should almost be a courtesy. Now if they're going to make you wait, they should at least have the ability that you can put your number in and they'll call you back. You're not sitting here waiting, right?

Yeah, yeah, exactly. Yeah. But it's interesting when you think about it. You go, okay, this is a gigantic, you know, multi, multi, multi, Tens of billions of dollars that this stock company's taken in. But they're pumping so much of the profit out to shareholders that they're always limiting their staff and they don't have staff to service the clients. Meanwhile, at the mutual company we're co generating, they don't have to put all that they're sharing only with one master, which is the policy owners. So they actually hire staff so they can provide better service. And I'm not being biased, I'm speaking literally from experience. I happen to be the advisor and a client on multiple policies with both type of company structures. And I have multiple stock companies that I deal with and the same experience is the same over and over again. Whereas I have, you know, one mutual carrier that I deal with and it's pretty consistent.

Keep going back to them.

Well, I like privacy, I like ownership, I like control, I like responsiveness. Those are all things that are important to me. Those are all things that you, you're a shareholder, right? Yeah, I'm a co owner. What about access? Like very few companies, insurance companies specifically give you an actual client, access to where you can see your payments, you can see your loan balance, you can see your loan availability. You can actually watch the daily growth. You can log in and request a policy loan electronically.

Right.

Speaking of which that's one of the things that we'll have to do with this whole project and implementation of the family banking system. We want to have a meeting where maybe we all kind of get our, technically I can access them all because I'm the advisor on file. We want to get like those, the values of the policies. Because one of the challenges that we're facing here in Canada is like, okay, we're gonna, we already got policies in place. We're, we, we have a $70,000 approximately. We're going to find out more about the Ford balance here. But we need to pay this debt off using the family banking system by Christmas of 2023. Right? Not a single penny can be paid toward the debt outside the family banking system. Those are, those are the rules. So part of it is, okay, where's the money going to come from? And so you got to think about what it is that you want to achieve in life. If something's really important to you, if you have an objective that you want to achieve, what's that going to do? It's going to change your behavior. So does that mean that maybe there's one less dinner out? Or maybe does that mean that you're, you know, maybe you're changing the structure of how some of your bill payments are, are already set up. Like maybe you're going from a monthly payment to an annual payment to save more cash flow and have it come back to the family. Or, you know, there's other things that you could do to try. And so we're going to put our, we're going to put our heads together and try to figure out how do we, you know, what do we have available in our system now? And then if we are short.

We'Re going to just join forces. We're going to get the cash put back into the system so that we can borrow the money back out and then pay off the loan.

So, and if you do it right, like this is the exciting part about it, is that it's the money you would already just give away anyhow to somebody else. So now you're redirecting it and you're putting it back into your own policy, right, Your own banking system. And it's just, it's a thing of beauty. Like why, why would you give your money away? Flow, have a flow away from you when you could just have it flow to, towards you, right into your own system.

You hit the nail on the head. It's the money that's already flowing through your life that we're Talking about.

Yeah, Transactions, right?

Yeah. And that's what we try to teach clients. You see, this is spoken like a true practitioner. This guy is not insurance licensed. He's not a coach on our team. This is what we do with our clients and this is what we do with our. The families we work with is we coach them to actually understand that there's a product which is the policy system, but then there's a process that you're being coached to implement, which is the family banking system or the banking concept. So that's what it's all about.

A few moments later. Hello.

Give me one moment.

Talk about building tension.

Balance $31,093.71.

Sweet.

That sounds good. I appreciate that. Thank you for your time.

And this is good for the 23rd of October.

Yeah.

And how do I, how do I go about paying that? Do like, do I just send a wire transfer or.

Yeah, you can do that, sir, or you can state a new dealership soon.

Okay.

Anything else I can help you with?

No, you've helped me enough. I appreciate your time. Take care.

No problem, sir. Thank you for calling. Have a great day, sir.

You as well.

Thank you for your trusting phone, sir.

You bet. Thanks. Take care.

Hey, is that not a little bit less than you thought?

That's a lot less than I thought, actually.

Okay, well, that's a win. Sometimes the payment amortization, you know, you.

Know, you just get so carried away with dumping the money in every. Every two weeks or so, you just, sometimes you forget about it. Right.

Let me ask you a question. Ballpark. How many cars, like how many vehicles do you think you financed?

Good?

Five?

At least five. See, that's the thing is like in your. 40.

45.

45. I'm 39. I've done. I'm on my 33rd because we just happen to keep vehicles for like a really long time. But I'm on my third. And that's the thing is like, we bought ours out a few years ago and that's what we did. We actually made the payment through online banking. But that's the thing to your point is like you need a car. Like if you're in North America, people have cars, two cars.

Yeah.

And you're just, you're just constantly making that payment. And the problem is, is people literally in Canada will say will spend more financing vehicles throughout the course of their lifetime than they can ever dream of saving for their passive income time or retirement.

Yeah. Like, right.

So now how is that going to enhance you and your family situation if we can we buy this out? Now, those payments for what approximately, I think the next four years or so?

Yeah, it's roughly 900, 950amonth. Right, right.

So those payments add up. You're paying interest. Well, now we're going to recapture that. It gets put to work in the system. We retain that. And now not only will we be ready, because you'll keep this vehicle beyond the four years. So the next time we need to go finance a vehicle, guess what? We're not going to. God bless them. We'll probably buy a Ford, but it's going to be with the family banking system on our own terms. But in the interim, we're building a tailwind and we're going to be building actual surplus of capital that we can access not only for our financing needs. We're not just talking cars here. Well, now we want to put money to work and lend it out or buy rental properties or create more cash flow. So even more money flows back to the system. So we could start more policies.

You just took the words out of my mouth. I was going to say, you know, Perhaps instead of $1,000 a month pay payment, now it becomes a 500amonth payment because you can control it. You take the other 500 and you.

Create a new policy that's bang on. See, that's one of the main questions that people ask us is, well, how do you sustain more than one policy or how do you add more policies? And well, first of all, you can work really hard, right. Some people are just stuck in a job where that's what they, they earn what they earn. So to your point, it's not about adding new payments or finding money that you didn't have or stretching yourself too thin. It's about finding ways to redirect the money so, so that you can take the same money that's already flowing through your life. It's already going through the books of someone else's bank.

That's right.

Could flow it back and start to build your system so you can have more control. So, hey, man, this is exciting, man.

It's super exciting.

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