The Reason Why You're Stuck in the Rat Race

When we meet with people who are saying, listen, like I've decided this is something that I want to do, we're not approaching it from the vantage point of you have to have a certain degree of wealth in order for you to actually go forward and implement this process. You just have to possess the desire, then you have to be able to have a shift in priorities and you have to recognize that controlling this banking function in your life is one of the most important things that you can do. Capitalizing your system and then implementing it. What does that even mean? Let's refer to R. Nelson Nash's book becoming your own Banker, page 65. Assuming that by now you're sufficiently convinced that this is a course of action that you would like to take. What is being sufficiently convinced mean that you understand the problem? Yeah. Meaning the solution matters to you and this is something that you want to do. And now the next step is where you're looking at how you're put together financially. So where is the money going to come from in order to set about doing what you decided you want to do, which is to begin your journey in becoming your own banker and implementing this amazing process. And he said that most important word that comes to his mind is desire. And without it you probably can't do it. Parkinson's law was a big, big element of that because people are already spending 100% of their financial resources on everything that they have prioritized as being best. There has to be some introspection to say first and foremost I want to. Nelson refers to it as getting out of financial prison. Well, that would be for people who are carrying maybe a lot of debt. Also a desire to build a bigger future. One that has them experiencing a peaceful, stress free way of life financially. And so what comes up for you, Sarblo? Anytime that you read page 65 of Nelson's book, you know, this is a.

Chapter, Jason, that me and my wife Sudeep, we read intentionally, with intention of course. First week of start of brand new year. So start of the year I always go into the chapter and I read the chapter and I got inspired to go find more money which is leaving a family and try intentionally to redirect that money through our system or expand the system so that we can recapture more of that or build a system even more capable or capability standpoint, so to recapture more of the losses that we have or the financial leaks that we have in the family. So, so assuming that you are by now sufficiently convinced. So again, you know, convincing as you mentioned, is we we understand the problem. And, and most people, they, they don't understand the problem, hence they don't know where the money is going to come from. I'll share an example. I met with a prospect client. It was almost two to three weeks ago, and he had monies in RSPs. He had monies in TFSA, and then he had a mortgage and he had a car payment. And I said, hey, where do you think the money is going to come from? Because I wanted him to intentionally start to think about. His thinking of. His understanding about the process of becoming a banker is like, I got no money. So, like, I got my money in RSPS earning this much. I got monies in TFSA earning this much. If I start to liquidate those monies, I'm going to lose the compounding of it. But all my money is in RSP and tfsa. All the other monies that we earn personally in a family, we use that money to, to, to maintain a lifestyle. I don't know where the money's going to come from. We had to step back and just rethink our thinking and look at the picture holistically. I said, okay, how much do you have on your mortgage balance today? And you know, he lived in the province of Ontario, and we all know mortgage balance a little bit higher in the province of Ontario. So his mortgage balance was about $700,000. And I said, what's your interest rate? He said, sure, well, I got a really good rate. My rate is. I locked it in when it was 2.4%. I said, great, so $700,000 at 2.4%. Right. And then I said, hey, hey, what's your RSP balance today? And he said, oh, it's $70,000 and, and be putting more money into it. And it's, it's compounding, it's doing really well. Touchpoint Market is, is working in our favor. I said, what rate of return are you getting on your RSPs? And he said, well, I can get, you know, 5% after fees and things like that. I said, okay, well, that 5% is after maybe fees, but not after taxes. But let's just use that math as, as example. So your mortgage balance is $700,000 and your interest is 2.4%. Yeah. So 700,000 multiplied by 0.024. So basically, in one year, you're paying the bank where you got the money for the mortgage, 16,800 in interest payments. I said, are you okay with the math so far? He said, yeah, that might make Sense. I said, great. I said, then you have your RRSPs at $70,000 and the interest that you're earning on RSP is 5%, which is not after taxes. Right. So you're earning 5% of 70,000, which is 3, $500. And he's like, yeah, see, I'm earning 5% on my RRSPs and mortgage is low at 2.4%. I said, you're paying 16,800 in interest on your mortgage and you're earning 3,500 in RRSPs. Help me understand, how is that financial progress?

But you're building equity and equity is.

Earning you nothing, nothing at all. Where is the money going to come from? Well, if you understand the problem, you already have the money. You, you trying to get ahead in life financially by investing, taking all the risk, parking all the money in someone else's financial institution, and they're taking that money and multiplying that money more than you can even imagine. But if you just look at how you are operating today financially, you literally taking one step forward, that $3,500 is one step forward, but you're giving up 16,800, you're taking back five steps financially.

Yeah, that's a really, really good point. And what's interesting to me is that you said you were speaking to someone. There was a comment around, well, I have to be rich to do this. And it's like the fact of the matter is, is that you don't have to have riches, you have to have priorities. And so you've got to reprioritize because you're already spending a hundred percent of your financial resources, as evidenced by your example on what you believe is best. But you may not really understand what's going on. And once you understand what's really going on, you'll know exactly what to do. But it's going to require a shift, a change in priorities. And so when we meet with people who are saying, listen, like I've decided this is something that I want to do, we're not approaching it from the vantage point of, hey, look, you have to have a certain degree of wealth in order for you to actually go forward and implement this process. You just have to possess the desire.

Yeah.

Then you have to be able to have a shift in priorities. And you have to recognize that controlling this banking function in your life is one of the most important things that you can do. For all the reasons that we teach in all of our content, all of our live events, all of our family banking summits and so on. But Nelson, the simplicity, where he would often say, when you understand what's going on, you'll know exactly what to do. And so what you just outlined with your conversation, you're helping that person realize what's really, truly going on. And you emphasized rate versus volume, where that financial energy is flowing to, taking into account that you're going to have to reckon with taxes at some point and you don't know what the tax calculation is going to be down the road, you don't know what the tax rates are going to be down the road. And so why play with I don't know versus I'm absolutely certain? What train of thought do you want to be in and which one is going to produce less or more stress? I know what train of thought I'm in. Going into our 16th year in this journey, the clients that have been with us for longer than a decade now are still saying, gosh, I wish I would have heard about this 11 years ago or 12 years ago or 13 years ago, whatever the timeframe is. This page 65, I cannot emphasize enough. One of the most important points that Nelson makes is in the last paragraph above all, get started. Now, the longer you wait, the more you penalize yourself. What does that statement mean to you, Sarblo?

More financial energy which could have been working for you and your family over the years has been transferred away from your family, from your business forever.

Yeah.

And the best time to grow wealth or to think about keeping the money in the family, which is the family banking systems that we talk about. So the longer we wait, the longer we penalizing ourselves. If 10 years ago was the best time to get started, well, Today is the second best time to get started. 10 years from today. If you're 40 today, you're going to be 50. If you're 60 today, you're going to be 70. If you're 70 today, you're going to be 80. You are going to be 10 years older. But the question is, do you want to be 10 years older with total and absolute control, or do you want to be 10 years older doing the exact same thing that you already are presently doing, and you only know the outcome of that.

Yeah, yeah, really good point. And if you were to tally up all the money that you've spent on everything up to this point in your lifetime and just start to take a bit of an inventory, vehicles, clothing, gosh, the list is just incredibly long. And you think about all the money that you've handled. So I'm not talking about, like, when we share with someone, hey, how much money do you make? And the person, oh, I make 80,000 a year. Well, you don't make it, you handle it.

Yeah.

The money lands in your account and you systematically transfer it away from you and all those transactions. You were able to buy the goods and services that you needed and that you wanted, but you don't have any of the money. Well, that's why money is called a medium of exchange. You exchange the money for the goods or services. But when you become your own banker and you implement this process, you're exchanging the life insurance company's money for those goods and services. Your money is flowing into your warehouse of wealth. And once it gets there, it can never leave your control. And it's going to continue growing for as long as you're alive. And then when you die, you can create a cascading effect of knowledge, the tool and the process, the knowledge of getting into the most important business in the world, which is the business of banking and the impact that it has. The tool, which is dividend paying, participating, whole life insurance, ideally a system of policies, and then being able to create this family banking system, this, this pool, this aquarium of money that is ever expanding. You use the life insurance company's money to go and do all those things that you need to do, control how you finance all those things that you need throughout your lifetime. Because money is a medium of exchange. You're going to need that medium of exchange. The question is, where is it going to come from? Are you going to continue handling money, transferring it away? Are you going to continue warehousing money and still achieving all those financial objectives that you have throughout your lifetime? Which one's it going to be?

Warehousing?

Yeah, warehouse the money. Warehouse it inside of an entity that you own that you control. Your financial energy, your income, your windfalls, your bonuses. However you earn money has to reside somewhere. So have it reside inside of an entity that you own and that you control and where that financial energy never leaves you. And you hear again some of that noise out there. Right. You can get your dollar doing multiple things. That's not what's happening. Your dollar is warehoused. The life insurance company's dollar is doing that other thing. It's not your dollar doing that. Isn't that what the banks do? Yeah.

If you look at the process of simple banking like we deposit money in a bank and in exchange for that they give us an interest rate. Let's just say today the GIC is at 5%. Using that as example, they give us 5%. But then they take the ability of leveraging that money and then they lend it to someone else at 8%, 10%, 12%, whatever it is.

Yeah.

So let's just say you today, you the viewer, you need a car, your money is in the bank, RSPs, TFSA, checking account, things like that. Great. You're earning compound interest and then you need access to capital, you go to the bank. Where do you think the bank got the money to give it to you? It was your own money that's given back to you at an interest rate charged by the bank. But bank will always charge more interest than what they're paying you on all your deposits.

Would you agree that words matter?

Yes.

If you ask them the question, hey, where's your money? And they say, oh, it's in the bank.

Yeah, that's.

Is it really in the bank? If we went to the bank and we said, hey, Sarblo's money is in here, can you take us to his money? What are they going to tell you?

It's not here.

His money is not here. Your money is not in the bank. What you think is there isn't really there. It's just an illusion. The point being, when you consider the function money comes into an account, the bank cannot let that money sit still. So the bank deploys capital, receives deposits, deploys capital, receives deposits, deploys capital, borrowers send payments back. The banks receive that capital, deploy capital, they create more money where no money existed before you're receiving income. There's a difference. The banks capitalize, you earn an income and you systematically transfer that away. If you warehouse it with the life insurance company that you co own, the life insurance company has to put your money to work. And when you need to control how you finance all the things you need throughout your life, you're using the life insurance company's money to do that. That life insurance company is never going to stop putting your capital to work in order to take care of all the benefits and promises that they've contractually bound themselves to. Key difference here is the life insurance company cannot inflate their money supply. Commercial banks do that all day long. Your money must reside somewhere. What better place to have it reside? In a non inflationary, contractually guaranteed, growing environment or the alternative. Something to think about, right?

Yeah.

Yep.

So it's somewhere before good is used.

There you go. So stop penalizing yourself. Get connected with the right person on our team. There's another video that's shown up that we've recommended that you watch it's part of our playlist process where we want you to continue your journey of learning. No destination or landing spot for knowledge, so click on that next video that we've recommended to you and get connected with the right person on our team so that you can explore how to get started now.