What It Takes to Become Your Own Banker

Okay, Canada. My colleague Rowan and I are here to talk about the process of becoming your own banker. The infinite banking concept in Canada. And the process of becoming your own banker can help anybody. It can work for anybody, but it's not for everybody. So what does that mean? That sounds a little contradictory. Stick around to the end of the video and Roman and I are going to show you exactly what it takes to get started and to implement the process of becoming your own banker effectively. What do I mean? It can help anybody, it can work for anyone, but it's not for everyone. What does that mean?

Like any other tool? This is a tool, right? Would you not agree? Like any other tool. With your tool, you can build a house or you can hurt your finger, basically, right? Or you can break this tool. If you know how to use this tool, if you have a right mindset, if you have a goal to even build something, then it is for you. If you have no discipline, if you don't know how to use this, if you're alone, if you have no coach, then it may not be even.

It may not even make sense for you to even start before you do something in preparation.

As you were talking there, you were talking about a tool. Of course, we use a tool called dividend paying whole life insurance, ideally with a mutual insurance company, to implement the process. That's the tool, but the process. You know, I could build furniture if I follow the instructions, if I follow the rule book, I could easily build that cabinet that's sitting right behind you. But if I throw that in the trash and I go, okay, I got all the parts, I can lay out all the parts, and I try to build this furniture, I'm probably going to be dead in the water. I'm going to be extremely frustrated. Maybe I'm going to give up. Or to your point, maybe I. Maybe I just break the thing altogether. So it's really important to actually follow the process, follow the rules, and to your point, add to that to get a really good coach to support you in implementing the process along the journey, right?

And also speaking about not only the, you know, the tool itself and also having a coach, also the. There has to be a right mindset. You have to understand what is your ultimate goal, what are you trying to achieve with this concept, right? So, and then if you have a right mindset, if you have conquered, you know, human behavior that is destructive, that can, you know, lead you away from your initial goal, then you're, you know, you may not be efficient. If you don't have a Roadmap where you're going with this, right? What are you trying to achieve then? It may not make sense for you to even do this. You may be better off, you know, staying in debt and just paying your mortgage or whatever loan you're paying off or, you know, using cash for whatever you're using cash. If you don't have right mindset. And the right mindset. What are we talking about? Right mindset?

Vern, there's a cliche statement that says if you fail to plan, you plan to fail, right? If. And I heard a long time ago, I share this all the time, but there's a guy by the name of John Asraf, and I heard him say many, many years ago on a video, he said, look, a lot of people are interested in things. They're interested in creating wealth. People are interested in becoming their own banker. But there's a big difference between being interested in something and being absolutely committed to it. If you're committed to it, you just commit. You go over, through and around. I mean, to your point, sometimes people can't actually take responsibility for their money or responsibility for the function of banking. Because if I build up my system and I access a loan, let's say. And let's say I pay off my truck. Well, I was already, let's say, paying a bank or a dealership every two weeks consistently. They just pulled the money out of my bank account. And that's what they want. They want it easy and mindless for you so that you can just forget all about that money that you worked hard for, and they can just take it away for the rest of your life. But the minute I pay off that truck, I no longer have that payment. What happens, Roman, is people get slapped right across the face by Parkinson's Law. They free up $600 a month that isn't flowing away. And now all of a sudden, what happens if I don't whip Parkinson's Law? If I don't have the discipline to redirect that capital to. With the same type of commitment that I had to pay the dealership. If I don't put that somewhere else to work, it's just going to get absorbed in the family budget. It's going to disappear, isn't it?

Let's maybe expand more on what. What is Parkinson's Law, what it is about and how. How does it work and how can it be implemented? How can it be applied to becoming your own banker in the first place?

Yeah, that's really good. So in Nelson's book, he shares Some really good lessons with us. And before I even say that, Roman, what we're talking about here is commitment. We're talking about desire. We're talking about. Look, I understand that there's a problem. I'm doing all of the work and someone else is getting all of my money. And I want to solve that problem as quickly as possible. Well, in Nelson's book, on page 65, so Nelson says at the top of the page, as you can see there, he says, assuming that you are now. That you are by now sufficiently convinced that this is the course of action that you would like to take, that the question becomes, how do I get started? The most important word that comes to mind is desire. Without it, you probably can't do it. So before I go any further. Isn't that interesting, Roman, does he say anything about, oh, you have to have a bunch of money. You gotta be rich, you gotta buy this product. He doesn't talk about any of that. You have to understand investment markets. No, none of that nonsense. Right.

He's not talking about rates. He's not talking about dividend. He's not talking about even policy.

Right, right. He's just saying, first of all, I actually have to have a desire. I have to be committed. He says, remember Parkinson's Law in part two? This is a description of Parkinson's Law. Everyone is already spending all financial resources on what he thinks is best. There has got to be some honest introspection at this point. And a commitment to getting out of financial prison has to be a burning passion. And, Roman, think about commitment. I'm sure you've been in this situation before. In fact, we were renumerated today at the recording of this video. A deposit showed up in my. I'm blessed. I'm happy. A deposit for the good work that we do showed up in my bank account today. Well, someone else's bank, by the way. And I actually get to do with that money whatever the heck I want to do. Isn't that right, Roman? We use things called policy loans to achieve objectives. They call it a loan, but it's just an accessing capital from a system that we own and we control. We're the banker. Banks want to issue loans because loans attract streams of payments. We just deposited capital into our own private system, our own business called our own banking system. So that's really good. But you said some key things, Roman. You prioritized the deposit, the capitalization, putting money to work in your system over the use of that money. And isn't it easy just to Go out and slap and tap and put your password in and use your credit card or your debit card all day long. You could deplete that account. You can do whatever you want. And guess what? Nobody cares. And no one's going to do anything about it.

Yeah, I know as a fact, if I don't put it to my banking system, it will be spent. I have a big family, I have so many expenses to run. I have this desire, this wish, this thing to purchase. I know it will be spent, my cash will be spent. What I want to do is I want to redirect this money into my bank and then once it's there, I'm okay to spend it. I'm not okay to spend it. My money, I'm spending insurance company's money, I'm borrowing for the same thing I wanted to spend. Either it's groceries or a gift to someone or something else. And then guess what? I'm making payments back to my system. Right?

It's perfect. So it takes discipline because there's that extra step. The cash gets deposited. Roman goes, okay, I'm going to take that capital and I'm now going to replenish my pool. I'm going to put more peas on the shelf. I'm going to. I'm not going to steal the peas. I'm going to replenish the pool. You know, pay back a deposit against the policy loan or if there's premium that could be deposited, well, I can deposit premium and make the policy system work a little harder. And then, you know, once that capital is stored there, all it does, Roman, unfortunately, all it does is increase every single day. I hope that's okay with you. But then you go back. You go back and access capital by a policy loan. Now you're using that policy loan to pay for your gas, your groceries, or recapture debt or invest money or do whatever objective that you have. Because everything that you do is a financing decision. Everything that you do requires the process of banking. But now you're in control of that process and you're using someone else's money, the insurance company's money, to achieve that objective. While your cash does what every day it's put to work in that system that you co own. You co own the lender.

I don't just call my account. I co own the whole business, the whole banking business that finances everything I purchase as a family, in my life and also in my business.

See, this is the thing that Canadians have such a hard time wrapping their mind around when they start to learn about this process. They go, yeah, it all sounds good, but they start thinking about or worrying. This is just speaking from experience, talking to hundreds of people about this process. Process. They go, well, Vern, I don't understand. How do you sustain 11 policies? How do you pay for all this and the cost and the this and the that? See, we need to change our mindset. This is not a product that you're buying in a cost that you have to pay for. Yes, we have to capitalize the system and build it and create momentum. Now we know we can start accessing values and we can achieve objectives immediately we can start accessing values. Of course, we're not going to be able to access everything out of the policy system that we put in right away. There is a period of time that we got to build and create that momentum. However, we're actually using the system to achieve objectives that we otherwise would have used our own cash for or borrowed somebody else's. And the thing is, Roman, is every dollar that you're depositing in your system today, if it's not going into the system, isn't it already being deposited in someone else's bank?

Yes, every dollar.

Right.

Go ahead. Yeah, I just wanted to add that you are not working harder to put more money into your system. What you've done, you work the same as you worked before. Have you not have the system in place? So what you've done, you've changed your priorities in life. And once your priorities have been changed, you now prioritize putting money into your system first rather than spending it right away. Now, so you're having income that as you had before you opened the system of policies before what you did, you spent this cash. Now you prioritize, you're saving the same cash into your banking system. And now you, you just change the flow of money. And this is key when you prioritize your system first before you spend it and then you spend other people's money, opm, as we say, to purchase things in life. And very importantly, we understand the importance of replenishing the system, basically. Eva. Yes, Economic value added, where you are not treating your capital as free money when you borrow even from yourself, you're treating your capital as.

Borrowed money. So you have to pay interest even if you're borrowing from yourself, you have to replenish the system and replenish it and make it bigger than it was before you borrowed it.

Says everyone is already spending all financial resources on what he thinks is best. There has got to be some honest introspection at this point and a commitment to get out of financial prison must be a burning passion. So Roman, you had mentioned you're not working any harder. That's not what we're doing here. We're not adding to and giving you a new thing that you need to quote, pay for or change your cash flow. What we need to do is have honest introspection and we need to look at where is the money actually flowing today and is there a way for us to restructure things or just simply redirect cash that's already leaving. And I'm not saying not to put money in these other places. I'm just saying that again, to Roman's point, we want to reprioritize. I want to prioritize the capitalization and the building of my system before any other use of money. So for example, I might be putting 500 bucks a month into a tax free savings account. I might be putting money into an rrsp. I might be putting extra money, more than what is required on credit cards, lines of credit or mortgage payments or what have you. I might already be just sending more money to somebody else's bank without them even asking for it. I'm taking my hard earned dollars and giving use and control over that money to them so that they can put it to work. Okay, well, let's take a look at what we're doing. Maybe you've already got a bunch of savings already built up and sitting somewhere else. Roman, what I say to I literally had this conversation yesterday with a new client. I said, you've got money stored where? In this tax free savings account in someone else's bank, right? And they said, yeah. I said, well, you're consistently putting money in there on a regular basis. He says, yeah. I said, okay, why don't we just. Because he said, oh, do I put money in the policy monthly? You can put money in the policy monthly if you like, in the most ideal scenario. Generally speaking for me, I like to deposit annual premium because I get all the cash in the policy. It's all working right away. And I don't like monthly deposits. I'm not a fan of that. I want to control those. I do a lot of monthly deposits in my system. But I said to him, I said, if you've got cash built up in someone else's bank already, can we just change the address? Can we just take that existing cash and now deposit into a company you co own into your policy system and let it be stored there instead of their own bank? And he goes, I think that's a great idea. Let's just change the address. Vern.

Awesome.

I love the analogy of a pool of money. So when we have a pool and we know there is a leakage in the pool, actually, I had some experience working with, you know, pool leakages. I, in my previous career actually worked with, you know, drain inspection cameras. And many people will, will ask to fix the leakage in a pool. Actually, I went, I flown to Barbados even to help my client to flee, to find a leakage in a pool, in a huge pool in a hotel, and to fix it. And then, so there are two ways to add more water in a pool. You can either put more water so that the inflow is greater than the outfloor, or you can plug the pool and find it and plug it. And this way you will just keep more in the pool rather than adding more income to your financial life. We're not talking about adding more income. We're not talking about picking up a new job or picking up a new business. We're talking about just finding a leakage in your pool and plugging it. This way you will retain more of your energy, of your care that is currently living. You just need to understand that there is. You may not be even, you may not be even aware of the leakage, but if you are sending money away on a monthly basis to someone else, to someone else's bank, and if you're keeping money in someone else's bank, believe me, there is a leakage and you need to plug it as soon as possible.

What you're talking about there is that introspection part, right? We're actually looking at, okay, well, what are my expenses? What is my income? How are things structured? Sometimes just the way that things are structured is a little bit less efficient than it could be. And that would be an example of a leak, maybe. Sometimes. Like, I had a client that I was chatting to a couple of weeks ago, and they said, hey, Vern, we've done, you know, we've cut out our coffee budget. We're not spending as much on coffee. We're preparing lunches now. We're not eating out for lunch anymore. We actually looked and realized, oh, we had a gym membership that we were paying for that we're just not using anymore. Like, there's these little things sometimes that, ah, doesn't, ah, what's the big deal? It's 5.99. It's 50 bucks. It's Roman. When we add up all of that energy, Netflix, right? We add up all that energy, and you Think about that volume over the course of your lifetime. We just discount the value of the growth potential on those dollars. And somebody else is harnessing all that energy and it should be you because you're the one doing all the work for it.

So what we're talking about today is we are talking about, you know, finding a problem and conquering Parkinson's law, basically making sure that your expenses are not, are not growing with your income and you are basically keeping money that is now leaving you. And you just need to change the address of your money and grow it. Grow it for you, grow it for your family, grow it for your business. Don't take it away, don't pay too much to your, you know, don't pay mortgage very aggressively. Keep the money, keep the money in the family and grow it. And then when the time is, when you're ready, you will have access to policy loans, use insurance companies money to pay that off.

How on earth am I going to put together a plan or create a solution for a problem that I don't know that I have? We need to really look at what's going on not just within our own finances, but the system in general where all the money is flowing. Nelson says very clearly that once you are absolutely clear on the problem, the solution will become clear. I can't create a solution if I don't know what the problem is. And the good thing is, is Nelson makes it ridiculously simple. The problem is, simply put, that you're doing all the work and someone else is getting all of your money. So if I recognize that that's the problem, okay, let me find some ways that I can create more control and I can redirect that capital. But to Roman's point, to our point in this video, it's not for everyone because not everybody has the mindset that's required. Some people think that they've arrived in knowledge. There's nothing more you can teach me financially. I've got all the information already. Okay, well, fair enough. The process of becoming your own banker is not for that person. Some people consistently spend way more than what they're making and they see that that's a problem, but they simply can't break the cycle. Well, hey, if you don't want to sacrifice, if you can't, if you're not ready to get a little bit uncomfortable from time to time to achieve an objective that's greater than what you're achieving today, then fair enough. There's nothing wrong with that. It just means it might not be a fit for you, but many, many people that show up. Roman, tell me you have conversations all the time. I hear this all the time. Vern, I'm ready. I see what's going on here. I'm tired of all of my money leaving. I'm tired of looking at my bank account and seeing my deposit to debit ratio is completely flipped backwards. There's so many debits being pulled out of my bank account. I put the money in there and then all the control is gone. Jason Lowe, the founder of our company, often says, oh, you're, you're earning $100,000 a year, are you? You're making $100,000 a year. You're not actually making $100,000 a year, candidate. You're merely handling $100,000 a year. It's just flowing through your hands and it's gone forever. None of that money is being put to work for you. You're working hard for your money. So let's get your money working hard for you. Just to recap, first things first, I know you got a ton of value here and you're thinking about this. We got the gears turning, so make sure you go to watchibc.com that's watchibc.com get access to a free 90 minute webinar that you can take in. There's going to be a link in the post description below where you can grab yourself a copy of R. Nelson Nash's book. And of course, if you're thinking about this, don't be shy, leave a comment, say, hey guys, I got a question. And we will do our very best to make sure that somebody answers that question for you and gets back to you. So what does it take to implement the process of becoming your own banker? I don't know if we really nailed this down, but the first thing, Roman, is desire. The next thing is, well, learning. Consume the content, get a copy of the book, get in touch, ask questions, make sure you work with a really good coach. But again, desire and commitment, the mindset, understanding that there's a problem and that you're doing all the work and someone else is getting all the money. And that just by changing the process of what you're already doing, you can create a dramatic impact, a perpetual tailwind pushing your wealth creation down the road without working any harder.