The Real Cost of Starting Infinite Banking and the $200K System It Builds

You don't have to be rich to get into the banking business. Having access to money is more reliable than any program or promise. Money isn't everything, but it sure can make a difference if you have access to it. So think about the future, think long range. Was it a regret of something that you did, or was it a regret of something you didn't do? So I think we're gonna both say both. We've all had those two things happen in life. I was just thinking of one today as I was thinking about this presentation and one of those things I regretted doing. And I just thought, well, I'll share that one 'cause it's, you know, just to give everybody insight as to what I'm talking about. Here I was a pretty young boy. I don't remember exactly what age it was, but you know, we were young, probably weren't, you know, able to read real well yet and understand things, but we're, me and my brothers, I had, you know, 4 brothers, just so you know. So there was a bit of a ruckus when we were around. And we're over at my grandma and grandfather's and, you know, we're exploring around the house and we come across this in this, what looked like a chocolate bar in my grandma and grandpa's medicine cabinet in their bathroom. And we go, woo-hoo, bonanza, chocolate bar. And so we proceeded to, we didn't eat it all because we were pretty, you know, we wanted to make sure we didn't looked like it was all gone, but we ate a fair chunk of it. So that was one of my regrets in life. Turned out to be Ex-Locks, worked very well. So I definitely regretted that thing, one moment that I had in my life there with trying something and didn't turn out quite as well as I wanted. So, but you know, when I think about the things that I didn't do, and I thought, okay, well, which one would actually— would I feel, you know, when I get to the end of life and I'm sitting there on the porch somewhere, rocking chair, and I'm still all with it because that's just the way I think. What am I going to regret in life? What are those things that really going to bug me? And it's probably the things I didn't do that I should have done. So tonight, one of the things I want to help everybody understand is that we all get an opportunity to change something. And tonight I hope you give everybody insight as to if you're not practicing this concept And you're saying, you know, because we hear this lots, it seems like every time I hear about this concept, it takes a lot of money to get started. Well, that's what we're going to show you tonight. It doesn't take a lot of money to practice the concept of becoming your own banker. Would you save $1,800 a year to build a bigger, better future? That's like $150 a month. That's what it is. Now, you break that down to a day, it's like $5 a day. Would you do that?

I'm just gonna help with our understanding around what Nelson described as the problem, and that came directly from his book, Come in Your Own Banker. So let's get into it. Now, from the chat, we can tell that some of you, this'll be just a review, but for others, this may be something completely different. And you know, that's fantastic. You can just think about rethinking your thinking on some of these parts and you'll really see some benefits. So some of the key areas from Nelson's book that I picked from are ones that he is about. So before we talk about solutions, it's really important that we kind of get crystal clear on the problem. You know, so many people are just busy earning money and they don't focus on where their money is flowing. So some of the parts in the book that I want to focus on is kind of that unseen truth about money. You know, the fact that we spend almost everything we make that we finance everything we buy, which may sound funny to some of you, but bear with us. And that someone else controls your money. And I'm also going to talk about something that maybe you haven't realized yet. So when I talk about when we spend what we make, you know, when I talk about Parkinson's Law and Nelson in his book, he really originally, it wasn't about money. It was related to work and the timelines that are given to complete it. So the idea that work expands to meet the time allowed for its completion. So what that means is if a job takes, say, 2 days to do, but it's scheduled for 2 weeks, when do you think it's going to get finished? If you said 2 weeks, you're probably right. Why is that? Well, Nelson would argue that it's human nature. So when we focus on money for Parkinson's Law, The idea that expenses will rise to equal income. This really explains that as income earners, you know, we all have money problems. As our income goes up, our expenses tend to rise right alongside it, and sometimes even faster. We see this in lots of different ways, like buying a nicer car, maybe a bigger house, just generally more stuff. You know, this can feel like progress, but it's really just lifestyle inflation, and that's stealing your future. So before you can control your capital, you have to control your behavior. Here's a truth that most people have never stopped to consider: that we finance everything we buy. You pay interest to others for the use of their money. This can include credit card bills, mortgage payments, car payments, property taxes. The list is practically endless. Some people might object and say, but Jim, I save money, I'm a saver. But the flip side of this problem is you still give up the interest that you could have earned somewhere else. Some think it's best to pay cash for things, but really when you're doing that, you're only interrupting the compound growth that money could have earned had you kept it in motion. This is what Nelson meant when he said you're either paying interest or you're losing interest. The result's the same. Money is flowing away from your control. You pay up or you give up. There are no exceptions. So if we consider control just for a minute, think about some of these questions. Who decides when and how I pay my mortgage? Who sets the terms for my car loan? Who decides if I can even get that loan or borrow the money that I need? Whose rules are you really following? And whose conditions do you have to meet just hoping that you might qualify? A simple question: does that sound like control to you? So when you think of where all your money goes, just consider this diagram. You'll recognize a lot of these places that are listed. These are all the places where your money flows, where all of our money flows. Who did all the work to earn the income that is now flowing away? I mean, I love this graphic because all these red arrows pointing away and none of it pointing back to you. This really strikes to the heart of the issue. So I would ask, if you're not controlling the banking function, then someone else is, and they're making a profit off you. Nelson talks about in the book that banking is the most profitable business in the world, and it isn't because of products, but because of the control over the flow of money. And yet almost all of us just hand over that control to others. Mostly it could be banks through savings or loans where they decide the terms and the timing and the expectations of repayment. But there's also the government who sets rules over retirement funds and tax laws. The biggest thing is I want everyone to understand is the ultimate problem is that as a society, we've ultimately, you know, we've abdicated that banking function in our own lives. But there is hope. If you understand the problem, then the solution becomes obvious. So with that, I am honored to introduce and pass the mic over to my friend and mentor, Mr. Dan Allen.

Thanks, Jim. That was a great presentation on the problem. So just as I was thinking as you're going through that, and just correct me if you know, if you think I'm right or wrong here, but I think I heard you say typically the problem for the most people and our world and our society deal with is they're doing all the work and someone else is getting all the money.

Yeah, that's exactly it, Dan. I think most people feel like that exactly, that, you know, you're doing all the work, toiling and working hard for our income, and yet how much of it retains with us?

And I appreciate what you shared because if— what we know from doing this is that people, if they understand the problem, they'll really be looking for ways to change that narrative for themselves. And that's all that Nelson discovered is a way to do that. So we're just thrilled to be able to be here tonight just to go through this and give you a little insight into this. 'Cause so I don't want you leaving here and without learning something. And I don't want you to have a regret later in life that you keep thinking, I need a lot of money to do this. And so that's what we're gonna attempt to do. So because we've got asked so much about this, we just thought, okay, well, let's have a conversation about How do I get started if I don't have a lot of money? So that's really what we're gonna address tonight. One of the things that, you know, I wanted to point out to everybody is that even in Nelson's book, and God rest his soul, when you go to page 17 and he is talking about the problem, Nelson refers to the all-American family, and that all-American family is making $28,500 after tax. Yeah, that book was written a few years ago, back in, you know, 2000. That's still not a lot of money then. And so he made it, and the reason for that is he says, "I didn't want people to think they have to be rich to create a banking system to handle all of their finances." So that was his intent. Yes, if you have more money, yeah, you can do this, that's for sure. But you don't have to have a lot of money. And that was one thing Nelson made very clear. You don't have to be rich to get into the banking business. Now, here's what you're going to have to start with. You know, this is— if you're going to practice this concept, it's got to be something you want to do. So let me know in the chat, is this something you want to do? Is this something you want to learn to do? If it is, just put yes. If it's not, I suggest, you know, you find something else because we're going to be talking about how to do that. So what's it take to get started? It's always a great question. And why do you say that? Because here's one thing, and I want to get your take on this. I believe this resonates with us all. We're already spending all the financial resources that we have on what we think is best. Does everybody agree with that? If you think that's reasonable, put a Y in the chat. So that's something you would say happens out there. We are already spending all the money flowing through our hands on what we think is best. So if that's the case, and are we getting any whys there, Jim?

Yeah, sorry, Dan, we're getting tons of whys. Yeah, you're right.

I'm going to take for granted we're getting whys there. Yeah. So if we're already spending all those financial resources on what we think is best, what's it going to take to change things? Well, it comes down to just one thing, desire. Nelson states that in his book. I 100% concur with that. It's gonna take desire, because without it, we won't be able to do this. So I want you to think about something that you've done in life and you've accomplished in life because you had the desire to get it done. You had to be thoughtful about it. You had to reach for something that you didn't have. So you're trying to attain something else. So it's gonna take desire. If you wanna do this, that's where it starts. So what is desire? Let's just think about a few different definitions. Well, one is just reaching for more than where you are now, a hunger to go further. And I like this next one, an inner spark that turns into action. So it's gonna take desire. So that's a given. I know that every time when I started this concept, it took a desire to start to practice this whole concept, to put premiums into a policy. We'll talk about that a little more. So that's maybe a change for you in some of your priorities. You may be already doing something like this and it's easier, but it may take a change in priorities. So I want to ask you, why might you want to do this? There's a lot of reasons for this, but I'm going to— what I come across just in the last week or so was an article written by a senior, someone who was in retirement, and just, they had a view that they'd learned from being at that stage of their life, and they just shared some thoughts. I don't have all the thoughts here that I want to share with you, but I've got a few thoughts that this particular senior shared. Now, I don't know the name of this senior because it wasn't named during the article, but I still found a lot of things that I had thought had real merit to make us think. So here's one thing that he shared: Relying on government or the system is like standing on thin ice. That's, you know, you just hope it holds you up. You hope it's going to work. You hope this is going to be safe, but you don't want to be on thin ice. You want to have a solid foundation under you. So relying on the government or systems that are out there, not the ideal. Now, I don't know if you've noticed this, but costs keep going up. And you know, when you think about this from someone who's in their retirement age of life, you know, quite often they have limited income. And it doesn't grow at the same rate. Now I know there's things in Canada, I know for sure where they like the old age security, they, you know, increase it related to inflation. So it's indexed with inflation, but it's still hard to keep up. I remember when natural gas costs went up back in the 2008, 2009 spiked, and some seniors who were paying just to heat their home, found that cost to be a real huge burden. So quite often when you're in that stage of life, bills, needs go up, prices grow, but the support doesn't. So here's another one he wrote: having access to money is more reliable than any program or promise. Yeah, so money isn't everything, but it sure can make a difference if you have access to it. When you get to that stage of life, it can just change things for you. And it's more reliable than relying on something else. Now here, I thought this was really good. Love your kids, but don't make them your retirement plan. Now, for myself personally, I figured this out years ago, so I can remember when my kids were all young and having a conversation with them. And I said, when your mom and I get to our 25th anniversary, I'd like you guys to take us all on a nice warm vacation. Well, here's what happened. We took the vacation, but guess who paid for that vacation? It wasn't our kids. So I'm not even counting on those suckers to help me anyway. They're good kids, I love 'em to death, but I'm not counting on my children because they've got their hands full living their life. And here was one of the key things that this retired person wrote. Even small, consistent savings create freedom and financial independence. Is dignity. And who doesn't want to have dignity as you get later in life? So I thought, well, those are a few reasons why you might want to do this. There's others, but those are just a few. So here's some things that I'm going to encourage you to do. Think long range. I love this one quote that I heard from Zig Ziglar, and he basically says, when you do what is hard, life will become easy. And when you do what is easy, life will become hard. So for some people, Thinking long range is hard. They just want to think about today. And I'm going to tell you, if you start to think about tomorrow, because those, you know, time goes by very quickly. That's what I've learned in life. It goes by very quickly. So think about the future. Think out there long range. That's Nelson's first golden rule. Think long range. The next thing I want you to think about is controlling the banking function personally. Now, when Jim was talking about the problem, Well, the solution is getting to the point where you can control the banking function personally. And when you get there, that is the most important thing you can do in your financial world. That's right. It's the most important thing. When you can get that control, you will change things. It's not magic, it's not a silver bullet. This process requires desire and commitment. And when you do it, you're gonna get control over your need for finance. And you would learn over time And it doesn't take long. That's the most important thing you can do in your financial world. So let me ask this question. Are you interested in building a bigger future than your past? And if you are, and I'm just gonna say to you, well, build it this way intentionally. So when I think about that, some of the ways I spend money, some of the things I've done to reduce the money I spend, even when it gets down to $5 a day. So every day that I drive to work, I go past the drive-through. Now, I could go through the drive-through, love my morning coffee. In fact, I have that in the morning before I ever leave for work. And after that, I drink a lot of herbal tea. So it's nice to go through the drive-through, grab that herbal tea, blah, blah, and go on to work. But I figured it out. Eh, it's a lot cheaper if I bring that herbal tea from home. So there's things that, you know, we're spending money on In most cases, people could look at a way to save, you know, not spend $5 and put it somewhere else and save that to build a bigger, better future. And if you do that, here's the possibility. You can have access to $206,000 in capital. You could have a death benefit of $428,000 30 years after you start this process. Now, 'Well, that's a long time, Dad.' No, it's not. Time goes by quickly. It's not like you're going to have to wait to get that death benefit. You're not going to wait to have cash value. It's going to be growing all through those years, so you're going to have access to your cash value well before that point. I'm just showing you a bit of a future look because I want you to remember, think long range. So here's kind of the objective that I want you to think about. I want you to think about Redirecting existing costs, money you're already spending in your family, just to help you build a bigger, better future. That's what we're going to look at. Page 65 of Nelson's book, he says, work with an agent who will show you how to redirect money that you're already spending to build your banking system. So that's what we're going to do tonight. We're going to show you how to build your banking system using money that's already flowing through your hands. That was one of the things Nelson learned years ago when he put it right in his book. You're gonna be able to do it by just using existing expenditures that are part of your life. So I'm gonna go through a bit of an exercise 'cause there's a couple ways that families are spending or paying for the expenses they have. So this is one way that people and families, different families across our North America are paying for expenses. So that's where they save up and then they withdraw when they need to pay for whatever the expense is. They just make a withdrawal. Again, they save up for it. I don't care whether this is once a year you're paying this or once a month, same idea. People are saving up for some of those expenses and then withdrawing the money to pay for it. Objective achieved. They paid for whatever that expense was, so they've accomplished that part, and good on them. We're all pretty good about doing this, you know, paying for those expenses that we have. Because if not, something changes for us. We need to cover those costs that we're incurring. So here's the question I have. If you did it this way and just saved up, paid, saved up, paid, how much money do you have after you've made those payments? Well, it's kind of a rhetorical question because really you always go back to the zero line when you do it this way. And yes, there is another way. That people use to pay for expenses. I think you're familiar with this one too. They borrow and then they pay it back. Yeah, it works. They get, they pay for whatever that expense is and it puts them, you know, allows them to achieve what they set out to do. So we've all seen versions of this in our life, I suspect. And again, question is how much, when people use this process, how much money do they have left after making all those payments. So yeah, Jim talked about pay up or give up. This is a pay up. You borrow from someone else, you pay up. The first one was give up. You save up and then you spend, you give up the interest you could earned. So here's a question I have for you tonight. What if you're able to pay for family expenses this way? You start to build a pool of capital. Now we're gonna talk about the tool that we use to do this. It just happens to be dividend-paying whole life insurance. And the reason why we use that tool is it's the best tool to practice banking at the you and me level. Now, if you can find a better one, let me know. I'm looking for it. Now, you can, you can bank with a lot of different things. You can bank with a shoebox, just not very efficient. Dividend-paying whole life insurance just happens to be the best tool to do this with. So you start to build a pool of capital using that product. Now you borrow against the cash value in that product, and we'll talk about this more, how that works. You borrow, so you got a loan, and your cash values keep on growing. They have to, even though you got that loan outstanding. Cash values in your policy will keep on growing. It's the way the contract is constructed. And you're gonna save for the next year's payment by paying it back. That's something I want you to think about. Save by paying it back. So the next year, whatever this expense is, you save for it for the, the next year by paying back the first loan you took. And you'll do that over and over as you go through life. Whatever that expense is, as long as you pay it, you can pay it this way. You will have more money in the future, and I'll show you how. So again, let's remember, think long range. Now, if you're here tonight and you're wondering, okay, there's a lot to this, and hey, I didn't get all my questions answered, or I really want to ask more questions about it than I'm going to be able to get asked tonight, here's what you can do. If you haven't already been working with somebody, if someone's not reaching out to you off of our team, you can just text the word schedule to— if you're in Canada, 780-809-4599. And if you're in the US, 813-793-7921. And trust me, those conversations, that's what we do. We just give people clarity around their questions because we want you to understand this concept. We want you to know how it works. And then if it's something you decide to do, We'll support you on that journey. So let's talk about the plan and how would this look. So I'm going to go into some numbers now. So I just want you to be aware, I'll try to go slow enough, but there's a lot of numbers. So you may want to go back and watch this again, but even better than that, schedule that call and have a conversation about your own reality with somebody on our team. That's your best bet. So we're going to talk about Premium. Now there's two payments that we can make into a dividend-paying whole life insurance policy. One is called premiums or required premiums. And in this case, we're talking about $1,800 a year. That's the flexibility. That's the amount that person has to pay. That's that, you know, $150 a month or $5 a day that someone's committed to build a bigger, better future. That's what they need to commit to doing, and they need to commit to doing that year in and year out. It's not a big burden, but if you want to make this work, that's what you got to commit to do. Then they have an option to put— well, more than $5,000, but today's example, I'm just going to show $5,000. In this case, they're going to redirect family expenses of $5,000 a year, and because they have the flexibility to put in deposit options. So like I was saying earlier, we need to build— anything that's worthwhile building needs to have a good foundation. So the required premiums are the foundation for your whole banking system. So I want you to be very clear and make that commitment that I'm going to, you know, take that $5 a day and I'm going to put it away, and I'm going to do that consistently over time. That builds the foundation. That's what you need to do. So we're going to look a little just at the foundation. Now, people will ask, you know, could I do more than $1,800 a year? Well, the answer is yes. Your foundation could be more than that. Can it be? Yeah, it could be. But I'm telling you, you want to make it meaningful because if it isn't meaningful, you will lose interest. So $1,800 a year as a base required premium will give you the ability to do something that's very meaningful. So here's some simple math that I wanted to go through. So if you paid that $1,800 a year for 30 years, well, you would've put $54,000 of premium into your policy. Now, when we look at the cash value at age 65, so just so you know, the case study that I'm going through tonight is about one of my clients, and I'm gonna call her Sarah, cuz I didn't want to use her real name. But Sarah was 35 years of age. And so when she started looking at this idea for her family and she decided that yes, she could do the $5 a day or the $150 a month, this is what it will look like. If she puts that money in for 30 years, she will have $54,000 that she put in and her cash value will be $102,000. So the question I had is for you tonight. Is what did she lose? That looks like $102,000 is more than what she put in. Now, somebody out there might be thinking, well, yeah, but she could use that $54,000 to do something else. Well, she's building a foundation. She's building a foundation for a bigger, better future. And so, yeah, she didn't lose nothing. Even if she just did the $1,300 or $1,800 a year, she's not going to lose nothing doing this. And then I just wanted to look at one other thing. This would be the death benefit that she'd have at age 65. Now, God forbid something happened to her, this would go to whoever beneficiaries are, in her case is her family. And that's a lot more than she's put in. So that's there right from the start. You don't have to wait to age 65. Yes, it wouldn't be quite $218,000, but it would still be a real nice— nothing nice about dying, but it'd be something that helps her family out. An immense way if, God forbid, something happened to her as soon as she starts this policy. So you don't lose nothing that way. She hasn't lost anything, but it doesn't look like a real exciting bigger, better future at this point. So we're going to get into that. So next slide, I just want you to take a good look at this one. This is just typical annual costs that families are occurring across North America. Now You look at that, your situation can be similar, can be different, but these are just average costs that families in North America are seeing for things like housing, for property taxes, for home insurance, utility, cars, you name it, groceries. Who hasn't seen them going up lately? There's lots of things that we're already spending money on, and that's the key thing. This money is already going through our hands. People that are paying for their mortgage, that money's going through their hands each and every month that they make that mortgage payment. Taxes, property taxes. I don't know about you, my property taxes keep going up, and that's probably not going to change based on what I've seen lately. So these are just costs that are going to flow through our life anyhow, whether we do anything differently or we just pay them. That's going to make the difference in how you flow this money, and we're going to look at that. So what I wanted to get into is just the plan for Sarah and her family, because I talked about that earlier. I'm just going to use her specific case as an example. So the conversations Sarah and I had were about, you know, what would you flow through your optional deposits— that's the optional part of her policy— in the first year? And she said, well, And the property taxes, I pay that once a year. I save it up. So I'd have that bill available to put into my policy first and foremost. So let's just review how she did this. So there's the $1,800, and I'm going to go back and I'm going to talk about that's something she made a commitment to, to build a bigger, better future. She's going to pay that. Now, the $5,000 that she saved up to pay those annual property taxes, she just simply put that into her policy first through optional deposits. And when she did that, she was able to then pay for her property taxes. Now, how would her future values change when she did that? So we're going to look at that. Now, again, if you remember, if she just put the $1,800 in and she did that all the way up to age 65, she'd have $102,000 of cash value. Then when she just puts in that $5,000 property tax one time— that's what I'm talking about, she puts it in one time— her cash value's now climbed to $126,000. And she was going to spend that money anyhow. That's what I want you to think about. She was going to spend that $5,000 anyhow. So this way she took money that was already going to be part of their budget, and she just put it into the policy, and she took a policy loan— and we'll talk about that— and she paid the property taxes. So her city was still happy. They go, okay, I got, you know, Sarah paid her property taxes, everything's good. But what she's changed is the future for her and her family by doing this. So we can do the simple math. She changed that cash value at age 65 by $24,000. So here's the question that I want you to think about. Presently, before Sarah started this whole process, when she was saving up for her property taxes, what bigger future was she creating for her family? Oh sure, she was keeping their family in good stance with the city by paying her taxes, but that money was gone. This way, she's starting to change that reality for her family. Now, when Sarah takes the $5,000 and uses it in this way, she creates $24,000 more dollars in 30 years. And so by paying for her annual property tax using money that she was already spending, she expanded her access to capital over time. So let's look at some of the details. This is what people always want to see, the details. So she was paying the $1,800. Then she paid the optional premium of $5,000. That's a total of $6,800 she put in year 1. And so end of that year, she had cash value of $5,900. So when you think about that, you can borrow— that's what the rules are in these contracts and dividend-paying whole life insurance contracts— you can borrow up to 90% of that cash value. So she could have borrowed $5,310. Now we know she needed $5,000, so that's what she borrowed. Now I just want you to think about, this is how Sarah was now able to pay for her property tax. She had built up that pool of capital, she borrowed against it, and then she saved by paying it back over the next 12 months. That's right, she paid back that policy loan over the next 12 months and then she could borrow again for her property tax. And she'll do the same thing. She'll just save by paying it back. She's created a system, a banking system that she's in control of. She borrows out of it, she pays back, and then she gets access to that same dollar and more as she does that. So she changed the narrative on how she was going to pay for her property tax. And it's a simple little process, but I can tell you this much: she will have more money in the future when she uses this process, even if it's just for that one expenditure, that one property tax cost that their family had. If she just put that in and that was it, she would still have more money in the future if she did that. So here's something that I want to go through with. I just want to go through a few more details with you because people are going to be saying, well, how's that work again, Dan? So she borrows to pay her property tax and then she resaves money for the next year by paying back the policy loan. So people are going to say, well, isn't there a cost on borrowing? Yes, there is. And in the life company that she's doing this with, she has to pay 6.5% interest on that money she borrowed. So that's like if she didn't pay it back at all and she was going to do it over a monthly basis. But I showed the worst case scenario. This is 6.5% of $5,000 if you didn't pay it back for a whole year. So $325 of interest. Now the thing I want you to see and understand is this is the cash value in year 2. So even though she paid $325, cash value went from $5,900 to $7,620. Can you see how Sarah was able to access everything she put back as a loan repayment? Including the interest? Well, that's the case. That's what happens over time with this. You get to, you know, access everything you put back in plus any interest and then more. So she was able to access everything that she put back as a loan, including the interest. So again, take you back to this simple little table of annual family costs, just to remind you, these are just a few things. There's You may have different things on your list, but there's lots of costs that are flowing through your hands right now. So with Sarah and her family, to build their bigger, better future, they started recycling the $5,000 annual property tax. And then for year 2, because once they started recycling that annual property tax, they could do that for as long as they paid their property taxes. They could keep using that same access to capital that they created in their policy. And pay their property tax and pay it back by saving, by paying it back. And then the next year they get to pick on some other cost, some other expenditure they had. And for them, it was childcare. That was what was important to them. And it was something they was actually, they were actually spending more than $5,000, but that's what they chose to use this system was $5,000 of childcare costs in year 2. So just want to remind everybody. This is money she and her family were already spending. All she's doing is recycling these costs, and she can do them each and every year that she chooses to do. Once you start this system, once you build up that access, that warehouse capital, that pool capital, you can continue to do that. You follow this process by borrowing and then saving by paying it back, you're going to have access to needs again the next time you go to borrow. So that's exactly what she was going to do. And so she just chose to use the funds she would normally pay for childcare for the deposit option in the second year. So let's take a look at this. So you remember first year they put in the $5,000 as optional for property tax. Second year, childcare costs, $5,000. Now They were now— had started to recapture 2 costs that they were previously just spending money on because they had to. It was a cost they had. Now they've recaptured 2 of those costs and putting them through their policy. And it just happened to be that they were doing $5,000 each for each one of those. So what's this look like? Well, now there's a difference. You see how much the change in how the future value went up? By just adding one more $5,000 positive option for some other cost, some other amount of money that was already flowing through their hands. That's all they did. They just chose to make a decision about that money, put it into their policy first, and then save by paying it back so they could do it again next year. Now they're doing it for two different costs. They're doing it for the property taxes and they're doing it for the childcare costs. Now that's all they did. Those again, those were costs they were already incurring. And you can see now they've increased their future wealth by $47,000 at the age of 65. This is what it looked like with the first $5,000 that they chose to do. But when they did the second year and they chose one other cost that was already flowing through their hands to build a bigger, better future, they now— and change that cash value for Sarah at age 65 by $47,000. So here's a question I have. If you think it's worked pretty good for two costs, two different costs that Sarah and her family had, what would it look like if they did that for 5 years? A different cost that they started to recapture, redirect, whatever you want to call it, redirect into their banking system to build a bigger, better future. What would it look like if she did that? Well, let's have a quick look at it. This is kind of the plan that Sarah and I are working on. They haven't got all 5 years in here yet, but they're working on it. So here's something I wanted to say to each and every one of you. This whole process Nelson shared with us, it's about becoming your own banker. So it took a bit of work for Sarah and her husband to think about how they're going to do this, but they looked at the value that it was going to bring to them and their family, and they said, yeah, we can make some adjustments in how we're spending our money. We're going to work at getting access to as much as we can each year so that we can put it in as optional deposits into our policy first and then borrow it out and then pay it back by saving for next year's payment. So they started to do that for these 5 costs. This is what their plan looks like now. Now, just so you know, in the conversations I'm having with her, I said, you know, we're going to focus on the first 5 years because people can relate to that period of time. But when you get done those 5 costs, we're going to talk about the next one and the one after that, because her cost in her family, the money that they're already spending, is a lot more than $24,000 that she can redirect into this policy. But we're just going to look at these 5 years, the first 5 years of their policy and what their plan is. So year 3 They're just gonna, they're working on getting that car and housing, house insurance flowing through their policy. Then they wanted to talk about their vacation. They like to take a vacation. They've penciled it in. They're gonna, it's around 4 grand a year they spend on it. So that's what they're gonna start cycling through their policy in the 4th year. And then the 5th year, utility bills. And so that's what they're working on. That's their plan. But I just wanted to show you That's something they could do. Now again, we go back. If they didn't do any of that, just put that $1,800 in that foundation, building that bigger, better future. If they just put that in, they'd have had $102. Now if they just take these 5 costs, this is money— again, I'm gonna remind you, this is money you— they were already spending and recycling it, redirecting it. At age 65, they have $206. You notice how the number keeps getting bigger? The more of those costs that they decide and work at flowing through, can you do other things like groceries? Well, I know the answer to that. I want you to think about that. But here's the other thing I want you to remember. That there only took $24,000 of money that was already flowing through their hands. So it's just like they didn't come up with it all in one lump sum. They did a part of that each year as they focused on building a bigger, better future. So they took that $24,000, and what did it create for them? Well, we talked about that. At age 65, now the cash value would be $206,000. That's a $104,000 increase over if they hadn't just paid the $1,800 a year. And then as they get— she gets older, cash value goes up even greater. Yeah, she's still paying the $1,800 because Sarah's committed to paying that for the rest of her life because she goes, hey, I can easily do that when I get to be later in life, just my old age security. I could pay the $1,800 a year. And why wouldn't I when I see these kind of increases over time? That's the reality. The compounding effect of putting premiums into your policy brings big value in the future. So she gets that. She's gonna continue to do that. But here's what I wanna ask you. Just by flowing those 5 payments, those costs that she's already had in her life, You see how she's increasing her ability to spend more as she gets old? It gets better. Cash value gets better as she continues to use her system. And if the good Lord blesses her to live to 80, she's created $228,000 more than what she would have had if she just put in the $1,800. And by what? Doing 5 different payments over 5 years. That's all. Yeah, they would've kept using it for the rest of their life 'cause they'd had that warehouse built up, but they could have done much more. But this just gives you an example of using 5 different costs and redirecting them into your policy to build a bigger, better future. Now here's something else, because this is a fact of life. No one has a lease on life. We're all gonna step outta life. We don't know when, but we know we're gonna step outta life. So just by recycling these, redirecting these costs through her policy, see what she does to benefit her family upon her passing. $206,000 more of death benefit at age 65. God forbid if she died that soon. Age 70, it jumps up another $234,000 than she would've had if she just paid the $1,800 a year. Age 75, it's up to $271,000. Her family at that point would get $578,000 of death benefit. That will help them in some way at that point. So I want to go back to that question I asked you before. Would you save $1,800 a year, or $150 a month, which is really $5 a day, to have access to $206,000 in capital, $428,000 death benefit? God forbid something happened. 30 years after they started that whole process? So that's a good question to think about. And this is a good thing to think about too. Those costs that are right now flowing through your hands that, hey, aren't building a bigger, better future, that if you took the time and effort to work on this, you don't have to put $5,000 in. You can choose to put— find something that's $3,000. Whatever you're going to do in those optional deposits, you're going to improve the results for you and your family over time. So this is another conversation that I've been having with Sarah. And I say, so, you know, Sarah, when you get done those first 5 years, we're going to talk about the next 5. And for tonight and for her, I just walked her through what it would look like if she just took and did that again with 5 more costs that are costs that she's already incurring in her family and redirected them into the deposit options one at a time over the next 5 years. That would mean now at the end of those 10 years, she's recycling $48,000 or redirecting $48,000 of money that she's going to be spending anyhow. It was part of her family expenditures. And how would that make a difference for her? And this is why I've had this conversation with her, because two things I'm pretty confident about. When she gets to the 6th year, she's going to be trying to find some way to pay that optional deposit because the increase is quite dramatic. So if she just takes those, you know, 5 more years, so a total of 10, and she finds those expenditures and starts flowing them through her policy— this is money that their family was already spending— she's going to increase the cash value by $865,000 to $181,000. Now, before, with just the 5, it was $104,000. Age 70 goes to $236,000, an increase. Before it was $135,000. So you can see how this just starts to get bigger and better, and it does give her the ability to spend more as she gets old. So that's just a look at what they were with 5. Now, as I said before, no one has a lease on life. So if she just takes those 10 existing costs, flows them in one cost at a time over 10 years, and then starts the same process for each one, she saves by paying it back. So she's now flown through $48,000 of their family expenses. It took her 10 years to get there, but given the track record she's got so far, she's gonna do this because she's gonna be seeing the opportunity to how much bigger of a difference she's going to make for her family. And when we talk about death benefit, yeah, it goes up dramatically just by doing that. It's not money she didn't have, wasn't going to spend anyhow. She just took money that she was spending and made a bigger difference for her family. So age 65, God forbid somebody takes her out of life, her death benefit is now $580,000, which is, you know, more. It was $356,000 before, was $206,000. So everything improves for her family, whether it's access to capital, whether it's death benefit. At some point when Sarah passes— if she does this for 10 years, she won't stop after 10 years. She's too young to stop after 10 years. She'll find ways to put that in for as long as she can. These numbers are just going to be bigger. But I just wanted to show you possibilities. So here's the question I still have for everybody. Would you save $1,800 a year, which is $150 a month, $5 a day, to have access to $283,000? So this is based on the 10 costs that are flowing through a policy like for Sarah to have $580,000 in death benefit 30 years later. And what did it take? Well, here's as simple as it is. It took saving a little money. That's right, that $1,800. That was something I started with back at the start, the desire to change something for the better. So Sarah and her family made a decision to save a little money, that $1,800 a year. And then they made a decision to redirect existing costs that, you know, her family, in this case, your family, is already spending. That's the solution. This is how you can do this whole process called becoming your own banker, even if you think you don't have a lot of money. Because here's what I know: there's a lot of money flowing through your hands. Yeah, like we said earlier on, that money, you're already directing it to where you think it's best. So we're just going to help you see how, even though you're directing that money to where you think it's best, there is a way you can do this. You can do this by directing that money into a policy. It's going to take some work. I'm never going to tell anybody that, hey, this just happens magically. You got to have the desire to do this. You got to have the desire to make a difference for you and your family. And if you have that desire and you're willing to redirect some of those costs that you're already spending, that's going to be the solution to building a bigger, better future. And this— and that is practicing the concept called becoming your own banker. And yeah, you can do it with $5 a day, making a commitment to spending that and saving that. That's what you can do it with. So here's the next thing. I just wanna remind you, if you don't have somebody that's reaching out to you already and you wanna learn more about this, the best way to do that is have a conversation with one of my colleagues. They know how this works. They can walk through your particular situation with you and give you the insights you need. As to how this could work, because we aren't going to spend a lot of time looking at this tonight. I just wanted to give you a sense of how you could do it. So with that, take care, have a great rest of your evening.