Jayson Lowe explains how banks control the flow of your money by distributing funds and collecting interest, leaving families worse off across economic cycles. He argues that "becoming your own banker" lets you redirect that interest back to your family instead of to financial institutions.
What is the very first principle that must be understood about the process of becoming your own banker? The infinite banking concept? The very first principle that must be understood is that you finance everything that you buy. You're either paying interest to access someone else's pile of money, or you're giving up the opportunity to earn interest on your own money. There are never any exceptions to that principle, ever. And so when someone's exploring this process of becoming your own banker, they have to understand the problem. And the problem is that if you're paying cash, leasing, financing, those things that you need throughout your lifetime, you have money flowing through the books of someone else's bank. And then that bank is taking over the function of distribution of that money and you're transferring it all away from you. And then the banks want you to go back there to borrow when you need to go and buy things.
Don't you believe that there's something fundamentally wrong with that? These financial institutions want you to hand control of your money over to them so they can gain control of the motion of that money. And then they want you coming back to borrow money for all the things that you need. It doesn't have to be that way. Someone has to perform the function of banking in your life. Whether we're in a pandemic, whether there's a bad economy, whether there's government change or government intervention, Interest rates go up, they go down, real estate markets rise and fall, stock markets climb and fall. The process of banking goes on no matter what. And so anything that you're already doing financially or that you're even contemplating doing financially is compared to what your peers are doing. And so if you're taking control of the banking function as it relates to your needs, you are going to be light years ahead of what your peers are doing. Everything that you do financially is measured against what everyone else is doing. And so if the majority, if you think about it from this perspective, if we have a very small group of ultra high net worth people, so if the minority are accumulating and controlling the wealth, why do we continue to do what the majority do financially?
We've got to rethink our thinking. And the process of becoming your own banker, the infinite banking concept can help you solve that problem and change the flow of the money so it comes back to your family versus flowing away.
