The Secret to NOT Being BROKE in Canada! Stop Being Broke

But all that money that we use is gone forever. We can never use that money again. It can never own any interest for it, for us ever again. It's gone permanently. We are always doing the math on the interest that we have to pay. We never do the math on the interest that we are going to lose. In their mind's eye, they think they're making progress, but they're actually just working now to recover their loss. That's why families are struggling. They're not getting ahead in life financially.

We finance everything we buy before we get started. Today, if you find yourself wanting to know more about the infinite banking concept, the process of becoming your own banker, just click the link below and you'll get yourself a copy of this book. Become youe Own Banker. Unlock the Infinite Banking Concept. All right, now onto the video. Over to you, Serbo.

Thank you, Peter. There's a reason why 500,000 of these copies have been sold. And the reason why is because it works. And then going back to the topic. So every decision that we make with the use of money is a financing decision. Either we borrow money from banks, third party finance companies, or private lenders. And when we borrow money from those institutions, we, we have to pay the money back with interest. Principal and interest is the repayment on those loans. So in this transaction, we know interest is involved, hence it's a financing decision. The banks, the third party finance companies, control the transaction, dictate the amortization, dictate the interest rate, and we have to make those payments back. We have no choice. So it's a financing decision because interest is involved. The other way that we use cash is, or we make transaction is we use our cash. We save up cash first in someone else's bank. And once we have enough money saved in that bank, we deplete that money and we use that money to buy the goods and services that we need. We do accomplish the objective of using cash for the goods and services. But all that money that we use is gone forever. We can never use that money again. It can never own any interest for us ever again. It's gone permanently, not just during our lifetime, but our next generation to come. In those transactions, when we pay cash, there's a cost associated with it. The cost is called the cost of lost opportunity because we are not able to earn interest on that money. So either we borrow money, pay interest, or we use our own cash and we lose interest. Every decision that we make with the use of money is a financing decision. The interesting thing is when we are borrowing Money and we have to pay interest. We, we know what the calculation of interest is because we see that on our amortization schedule we know how much interest we're paying. But when we pay cash and we're losing interest, we do not do the calculation of loss opportunity. We don't know what the loss is. The cost of loss opportunity can be a lot more than gains in your investments.

Let's do a calculation of cost of loss opportunity. I'm going to use a simple example of $10,000. I'm sure you spend $10,000 at least just be a method of cash payments and goods and services that you need. So I'm going to use $10,000 in this example. Now, Peter, how much interest rate can someone earn very conservatively on their money today?

4 or 5%.

4 or 5%. Let's just use 4% as example. Let's keep them as simple. So this family, and I'm going to use a family and they're 40 years young and they just bought something for $10,000 and they spend cash on it. Now we know now if they've spent cash on it, the money's gone forever. They cannot earn any interest on that money ever again. Now that money could have been earning them 4%. Now if they're 40 years young today and based on just some actuarial tables, actuarial calculation, the projected mortality for male non smoker age 40 is age 85. So if he's 40 years young today and he spent $10,000 via cash, he basically made a decision of not to earn interest on that money all the way till his projected mortality, which is age 85. So from age 40 to age 85, Peter, how many years would that be?

45 years.

45 years. So let's see what the cost of loss opportunity is on $10,000. So $10,000 could have been earning 4% over the next 45 years. The real cost of using that money is not $10,000. The real cost is $60,315 because that individual made a decision not to earn interest on that money ever again over his lifetime. Now this is just over his lifetime. But we know when that money is gone, it's gone forever. Not just over your lifetime, but for your next generations to come. So if you involve all that, the cost of lost opportunity is high. It's ridiculous. We are always doing the math on the interest that we have to pay. We never do the math on the interest that we are going to lose. Now here's an interesting fact about It. Now, Peter, what's an average family income in Canada today? So husband and wife, average family income.

I would say average gross. Let's use a round number again, say $100,000.

$100,000. Now let's just assume 100,000 is net income. Money in hand for the year. Now, from that income, how much do you think they're setting aside just for savings.

Per year?

May maybe 10%, maybe more 5%.

So between 5 and 10%, let's just give them benefit of doubt. They're actually saving 10%, which is great. You know, saving is important. So 10% is what they're saving. So they make $100,000 net, and then they save $10,000 per year as money saved. Now, if the cost of loss opportunity is $66,000 or just one transaction of $10,000, how many years they have to now wait to recover the $66,000 in loss knowing that they're saving $10,000 every year?

Yeah, that's a whole nother.

I guess another equation to put into this, right?

Six years. So now they're going to work six years going forward just to recover and save the loss that they had by spending cash in their mind's eye. They think they're making progress, but they're actually just working now to recover their loss. That's why families are struggling. They're not getting ahead in life financially.

If they spend again, $10,000 in cash this 40 year mail, the cost of lost opportunity on just that transaction is $66,000. And if that family is saving 10,000 per year, they're working six years now going forward just to recover that loss. So they're not making any progress over the next six years. You're just recovering the loss.

And how does this relate to the process of becoming a banker, Peter, where does this process come in? How does this process comes in and help us?

Well, that's exactly what we teach, right? We're helping people or Canadian families and business owners to understand how this works and how to recapture all this money that's leaving us. And it's easy either through it goes back to the original question is, you know, or statement is we finance everything we buy, right? So we work with our clients to help better understand how to implement this into their. Into their lives. Yep.

Now that's a really good point, Peter. So imagine if you're able to grow your money uninterrupted every single day without market risk, without stock risk, without any other government intervention, the money is growing every single day. And imagine if you're able to borrow against that growth without interrupting the growth of the money. So you're able to use insurance companies money to accomplish the objective of buying goods and services, things that you would otherwise spend cash on. Now your money is growing in an asset every single day and you're using insurance companies money to accomplish the objective. Your money is never being interrupted, so there's never a cost of loss opportunity. And when you use that money from insurance company to buy whatever you want to buy. By practicing the process of becoming a banker, you structure the loan repayments back into your system. You decide what the loan repayment is. You're in total and absolute control. But here's the best thing you making loan repayments back to an ever increasing pool of money. When you're done making the loan repayment, you're able to go back and re access everything that you put back. By virtue of loan repayment and plus more. Because your cash kept growing, you're paying back into an ever increasing pool of money. You're able to reuse everything that you put back and more to put that money to work again to do more things with your family for your family. You're never giving up the cost of lost opportunity and you're always growing your money no matter what happens.

To learn more about this process again, if you haven't already ordered a copy of this book, we're going to leave a link in this description. Go ahead, click the link and order a copy and we'll ship it to wherever in Canada.