Skip Your Bank! This Option Will Make You MUCH More Money In Canada

If you're using a bank today to fulfill your financing needs and to store your capital, you're having the banking process work against you. And Roman and I are going to show you how to have the banking process work for you. Stick around to the end.

So, Roman, the banking process is working against people, right? It's not working for people. You know, banks have taught us they've done a really great job of convincing us that we actually need them. That's not true. You and I both know banks actually need us. They've convinced us that we need to take our money and put it at risk in order to grow it. But from what I understand, Roman, aren't banks pretty darn good at creating wealth and profit?

So, yeah, they're very good at that. I agree, totally agree, Vernon. That banks are, you know, they are using our money because they want us to know that this is the only option for us. No one is telling us from the school, from, you know, from college, no one is telling us any other options exists. So banks are very good at making money, but who are they making money for and how they are making money? And really the answer is that.

No, go ahead.

The answer is that they are using our money to create a wealth for themselves or for their shareholders.

Yeah, Roman, you're exactly right. You and I are on the exact same wavelength. You know, when I say that banks have convinced us that we need them, they say, hey, you know, come to the bank, store your money here. You can trust us. But the reality of it is, what's the bank doing with that money? Exactly what you said. They're taking that money and they're actually putting it to work in order to grow profit, and they're not sharing any of that profit with you or I. So let me get this straight. You and I are doing the work. We're depositing the money. They're taking our money and putting that money to work and not sharing it with us. Now banks money to other people and they cannot make a loan without a deposit. So if you start reverse engineering the formula here. Who needs who in that equation, Roman?

Yeah. So basically, bank needs us more than we need bank. Actually, if you look at it, then without our money, without our deposits, banker will need someone else to deposit money or maybe use their own capital to risk their capital to grow the money. But if they get free cash, basically, or if they get pretty much cheap, I would say cash. Right, because they sometimes Pay interest, maybe 0.25% or maybe 0.5% on savings account or on Checking account. For them, it's cheap money. And then they use this money to make a lot of wealth because they're actually, first of all, they are lending money, they are giving mortgages, and they create all this profit. And the faster they recycle my money, many, many times, the faster they grow their the wealth for themselves, for themselves and for the shareholders.

There's a key word that you used, Roman, that I'm going to pull out of what you just said. Brilliant. The word is risk. So, you know, banks and financial institutions and investment advisors and all these people have convinced us that we need to take our money and put it at risk in order to grow it. Let's just think about what does a bank actually do? Banks are good at making money, right? But do banks actually take money and invest it at risk, or do banks lend money with security? So, yeah, right, if you walk into a bank and you got no job and you got no money and you need cash, you need help, are they going to give you a loan? The answer is no, most likely not.

Because they want collateral, they want security.

Exactly. They want collateral. They either want equity on your home or they want you to jump through a bunch of hoops to prove to them, Look, I make $100,000 a year. I have an 850 credit rating. I pay all my bills on time. I have this much free cash flow. So that's the way that bank assesses the risk. They look for assets, and they look for people who have really reliable jobs and cash flow. And then they're comfortable with the risk to lend you the money. So they're not taking their money and putting it into the stock market and taking all that risk and hoping that the cash grows like they convince us to do. They actually lend money with security to create almost guaranteed income streams. So this is what we mean by the banking process working against you. You're the one doing all the work. They're getting all the money, they're lending that money out, creating streams of income, and then your cash is flowing away. And when you need to make a major purchase, you got to go back and jump through all hoops to borrow money from them just so that you can make a payment on their terms and have more money flow away from you.

Yeah, and in fact, they actually are the first to receive my own money. So when I deposit my check, I didn't even have this money in order to spend it. In order to spend it, I actually have to give them my money first. So they get to receive my money first. And Then I get to spend it, right?

Yeah, yeah, they got a stranglehold on the, on the whole thing. And so just getting back to that idea of creating wealth. Well, if the banking process is working for, against me rather, and someone else is the banker in my life, what if I could find a way just to become my own banker? If I were the banker in my own life. All the payments that I'm currently making for gas and light bill, credit card payments, mortgage, car payments, all of the money is flowing away and being put to work for someone else. I could actually flow that money back toward me and my family. So I'm the one who control the repayment schedules. I'm the one getting all that money. And all that money is being put to work for me and my family and I get to re access that money. Again, that's having the banking process work for us. We don't have to take a bunch of risk in order to grow our wealth. We just have to do what banks do. We just have to, you know, emulate their model. And it's absolutely possible to by using that powerful tool you have right behind you, that book called Becoming youg Own Banker, Unlocking the Infinite Banking Concept. Or better yet, you have quick access to a really great playlist right beside me here that can help expand on the process that me, Nelson Nash, it can expand on the concept that Roman and I are talking about here. So yeah, it's just that easy. It really is as simple as we're making it sound here.

So in talking about banks, Vern, does it mean that when you become your own banker with opening participating dividend paying whole life insurance policy, does it mean that you stop using banks or how does it work with banks? Because, you know, some people may be wondering, are we still using banks or do we kind of become my own banker and process my own transaction? Is there like a credit card that is attached to my policy or how does it work? Maybe speak to that.

Excellent question, Roman and I get that question a lot. You're exactly right. We're using a permanent participating dividend paying whole life policy really as a tool to implement the process of banking. Now I want to store my capital, ideally with a mutually owned insurance company in the form of premium in a policy called a permanent participating dividend paying whole life policy. The policy builds cash value. I can actually borrow against that value without interrupting the growth. But I am going to have that capital flow in. It's still going to flow to the commercial bank because I'm going to use the commercial bank for the convenience of debit, not to store my capital and not to fulfill my financing needs. Really great question, Roman.

So I love, you know, collecting rewards and points. So it doesn't mean that I get still to get my rewards and points without actually getting into debt again, right?

Yeah, you're exactly right. I still use the credit cards. You know what I do a lot of times is I'll actually, instead of using the credit card or the bank's money, I'll sometimes I'll actually put a positive balance on my credit card. So there's a credit there and they actually owe me money. But I can still use the tool and collect the points and have that convenience, but I'm just not using any of the bank's money. I'm not paying interest. And so perfect little tricks that you can do to have the banking process work for you instead of against you. Now just imagine, Roman, all of the money that people are earning today. Imagine all of the money that you're earning. We grossly underestimate the amount of capital that we're actually going to handle and that's going to flow through our lives and, and how much energy that capital has. What could it grow into? And who understands the energy of capital more than anyone? Banks, they understand what turning over those dollars and having that money grow, what it can create for us. So we just need to change our mindset and change our thinking and we can end that pain and start to thrive in a very, very risk free environment.

Perfect.

So Roman, we're talking about the banking process and having it work for us rather than against us. So what I'm going to do here, Roman, is I'm actually going to just share my screen quickly and I'm going to give a bit of a, that will help help the viewer understand what it is that we're talking about and start wrapping our minds around what's possible here. Okay, so this is one of my favorite slides. It actually just, it says that you are your greatest advantage. You actually are your greatest advantage. I say to my clients all the time, Roman, I say, look, you are already someone's really good customer. Some bankers really good customer because you're a good hardworking Canadian and you've been taught to pay your bills, you budget and you do all this stuff and you put the light bill and the mortgage and all those things and never, Roman, do people on their budget put Vern or Roman or whoever's name is supposed to be on the budget. They don't put themselves first. What we do is we're taught to flow all of our money away. But you can become your greatest advantage by implementing the process of becoming your own banker. You can become a wealth creator by implementing the process of becoming your own banker. And here's what I mean, Roman, tell me if this is true or not true. All of our money is already flowing to someone else's bank. We've already established that that bank is putting that money to work. And then you spend that money and it's permanently transferred away. So if we look at the green line or this green dot here, imagine this is like a bank balance. I don't care what the number is. You're. You know, you're depositing money over time. This is your bank balance. Some need shows up. Could be a car. It could be a new furnace for your rental property. Could be property taxes. Everything that you do financially today starts with the process of banking. And you need capital to fulfill the objective. So here's your balance, and what happens is, this is just a visual, but you now drop down below the line by spending your own cash, or you drop down to zero. If you borrow money from somebody else, you drop down below the line, and you either need to make payments to someone on a schedule, or you got to make deposits into someone else's bank just to get back up to where you were before. And then another need is going to show up, isn't it, Roman? Expenses do not stop showing up. So the balance keeps on going down. Your cash is going up and going down and going up and going down, and you keep having to work hard to keep putting that money back into someone else's bank. Right? Yeah.

Someone has to pay the bills.

Someone has to pay the bills. Now, one of the ways that we can start having the banking process work for us rather than against us is all Roman and I do, is we just change where we're depositing our capital. Okay? So when I earn, I earn my income. What I do is I carve out, you know, to get started, existing savings or some of my own cash flow. Something that works for you. There's. You got to find a starting point. We can't control the entire banking function overnight. Can we romance?

No, we cannot.

No. It's going to take some time. It's going to take some patience. But correct me if I'm wrong, Roman, Is the time going to go by anyway?

Yeah, absolutely.

Yeah.

Whether you decide that there are only two outcomes. Either we die too early or we live too long.

Exactly right. And guess what? Regardless of what you decide to do the process of banking just is it's going to continue on no matter what. So what Roman and I do is we carve out savings, existing cash flow, and we start systematically making deposits into a system of policies owned, administered from a mutual insurance company. So we're depositing premium into a policy system and that policy is going to start generating cash value right away and it's going to have a death benefit. So God forbid I become an angel. There's a lot more money coming out of the policy to make sure my family's looked after, will never have a bad financial day as long as I'm here or after I'm gone. So instead of if you don't have.

Any bank, I'm sorry to interrupt you, but. No, no, yours is something you don't have in any bank.

Yeah. And to your point, Roman, how important is it for money to show up if someone in the family passes away? We have to replace that.

Oh, yeah, it's absolutely critical. I think it cannot replace the person in the family, but it will definitely help to, you know, to have this grieving days go past more smoothly, I would say.

Yeah, if money shows up, then you can just take the time to do what you need to do to get your mind right and get focused and do whatever ever you need to do to move on with life. But the point is, is now we have this death benefit, but we have cash value growing inside the policy. And let me just share my screen again. Let's imagine that this green line represents the cash value that's growing in the policy because the cash value has to rise and to match the total death benefit of the policy. The total death benefit continues to rise over time because we're capitalizing it and the policy is receiving dividends, a share of the divisible profit from the insurance company. And so that death benefit is going to expand. So the cash flow just keeps on rising. But now we have the contractual right to borrow up to 90% of the total cash value to achieve whatever objective. Car financing. And now we get to control our own repayment schedule back into the policy. And as we're paying back that policy, we're not interrupting the compounded growth on the cash value. So I always have access to, let's say my balance of the loan is down here now. Well, look at the green lines rising. I have access to the sandwich in the middle. As that cash value keeps on rising and as I'm paying back the loan, I have access to more and more, an ever increasing pool of financial value. So I can keep on, you know, turning that money over just like banks do. And if I borrow money from a bank, I'm going to agree to a repayment schedule. So if I borrow money from my own bank, I'm going to follow that exact same principle. But I'm the one now that's in control of that repayment schedule. Roman.

Yep. And then I also wanted to add that this slide actually, if you can maybe put it up again. So this slide actually shows that.

You cannot do it overnight. So these first two cycles, as you can see, yes, you are borrowing against your cash values, but at the same time, this cash value may not be enough for you to actually fund or finance this purchase. So you still may be dependent on banks. And as you can see, you still have to borrow maybe once or twice from banks in order maybe to purchase a car, maybe to do any other purchases or emergencies. And then with time, as time goes by, then you don't go into debt anymore. That's why. So this slide perfectly illustrates that it is not an overnight thing. It is not a quick fix. Right?

Yeah. No, I'm really glad that you brought that up, Roman, because a lot of times people say, okay, great, I'm ready to become my own banker. And then they want to control the entire banking process overnight. But again, in that book behind you, Nelson taught us that it's going to require a system of policies that's going to take time for that to generate. So one of the things that you can do is get, you know, be patient and educate yourself and make sure.

Read the book.

Read the book and binge all this content and get in touch with us so that you can get some good guidance so that you, you know, you make sure that you actually talk to somebody who's. Who's walked the path and been able to implement the process in their own life. Right? Yeah.

You need a coach. You need a good coach to guide you through and also to help you along the way. Don't be alone and don't try to be alone. You need a good coach to help you with that.

Yeah. And so, as we said, this is how you begin to have the banking process work for you rather than against you. And so make sure you binge that content. And we look forward to hearing your great comments. All the best to you. Take care.