You Can Lend $ With Security Instead Of Investing With RISK Too! (Canada)

Actually want you. The last thing they want is for you to default. They want you to continue to make those payments and flow that money because they know whomever controls the motion of the money is going to be the one who accumulates the wealth. If the problem is banking because all the money is flowing to someone else's bank, what's the solution? The only solution is the process of becoming your own banker. The infinite banking concept.

The fundamentals of banking. Lend with security rather than invest with risk. Who's in control of the money? Now? Think about this slide for a second. You know, we hear all the ads all the time. We are taught to invest with risk, take our money and put it into someone else's control and take more risk in order to grow it. But aren't banks pretty darn good at creating wealth and creating profit? They are. Well, they don't invest with risk. They lend with security. Let's take a deeper look at who's at control. Well, it's the bank. The bank sets all the rules and the money flows to the bank. They have all of the control. Here's something to think about. What do we think, gang? What is the underlying asset? What's most important to the bank? Do they want you to default? Do they want that piece of real estate? Is that the asset or is it the payment stream? The underlying asset to the bank is the payments. That's all they care about. They actually want you. The last thing they want is for you to default. They want you to continue to make those payments and flow that money because they know whomever controls the motion of the money is going to be the one who accumulates the wealth. Now let's take a deeper dive. And what I mean by that, let's examine the actual process of banking. And again, what the typical Canadian is doing. Now, regardless of what your objectives are, regardless of what you're doing, just replace the examples I use with examples in your own life. Okay, so let's just look at a simple example. Let's just imagine for a moment that you deposit $50,000 into someone else's bank. And I don't know where this 2% came from. We're being awfully generous, but let's pretend like the bank is actually going to pay you 2% for holding onto that money in a savings account or something to that effect. Now what happens again? Whether that's you or someone else, someone goes and applies for a mortgage and the bank is going to lend them that mortgage at 4%. Maybe that's a little high, but this is illustrative purposes. Now we actually think or a lot of people are walking around in Canada thinking, oh yeah, the bank's making the spread. They pay me two, they charge four, they get 2%. We're going to examine and find out if that's actually true or not. Well, if you buy a home, the money is going to flow to the seller electronically. But is that seller, what's the seller going to do with the money? It flows right back to the bank. Remember the globe? Only one pool of money, right? Money flows right back to the bank. They get use and control over it. Again, they can't let it sit still. What do they do? Well, they lend it out to the guy who needs a new vehicle or the young couple that walks in or whoever just bought the home, Hey, I need a vehicle too, right? So now they're going to lend money to finance a car at 5%. So they're making some spread there as well. And you know the dealership, they don't have a big safe in the, in the back of the warehouse. They don't have a giant mattress to store the money under. They flow it right back to the bank as well. Again, the bank gets used in control over the money. Now we've been living life and working and doing all these things and the house is getting a little bit older. You know what, it's time to do a bit of a renovation. Let's go back and borrow some money to do a renovation on our home. And they're going to charge us 7%, let's say on a line of credit or something to that effect. Well, you give the money to the contractor and what does the contractor do? Does he walk around with a giant briefcase full of cash? No, he deposits right back into the bank. And again they get use and control over that money so that you can come on back later on. Or your brother in law or something like that says, hey, I'm in a little bit of trouble right now, I need to wrap a few things up. I want to consolidate some debt. They're going to lend him a little bit higher interest rate and they're going to consolidate that debt at 12%. And then that money flows and pays off the credit cards and whatnot. And where the credit card companies, where are they storing that capital? Again, it flows right back to the bank. What's actually happening is they're making 2% on the mortgage loan here. They're making 3%. Right, because they're paying us the 2, they're making 2% here, 3%. Here, they're making 5% on the house renovations, and they're making 10% on the consolidation. So they're actually making 20%. They're paying us 2 and they're making 20. Now here's the question. How much more, how much more is the bank making than we are? In this example, if we look at the 20% that they're making, they're paying us 2%. So if we divide our 2% by their 20, they're making 1,000% more than the depositor. They're making a thousand percent more than the depositor. And people are walking around convinced that it's just the little spread, no big deal, it's all good. This is. It's absurd. And here's the deal. This could be you. This actually could be you being the one who is recapturing all that interest and that growth and control. Now, again.

Just want to challenge the thinking of what's going on out there in the world so that we can rethink our thinking and see if there's a different way, a different process that we can implement to achieve our objectives in a more powerful way for our family. Now, what we have here is we have an example of what we call the debtor, the debtor and the saver. So what we're going to do is we're going to look at. Let's just use an example and imagine that we want to buy a car, okay? So we're buying a car in this example. Pardon my chicken scratch there. So there's one group of people out there who decide that they are going to be a debtor. And, hey, this is the smart thing to do, right? We're going to go into the bank and buy a 40, 50, $60,000 vehicle. But all I got to do is make a manageable payment. So what they're going to do, if this is our zero line, they're actually going to drop down and they're going to get into some debt. And now bank has all the control. They have to commit to, work really hard and make all these payments and get all the way up just so they can pay it off after five, six, seven, eight years, just so they can land right back at zero. Now, after five or six or seven years, maybe you've expanded the family, maybe you're earning more income, maybe you want a nicer car. Maybe they go even further down and the payment's bigger and they do the exact same thing and they have the vehicle and they think that this is a fair exchange because, hey, I Get the vehicle, they get the money, everybody wins. Well, what happens if life happens? And for some reason you have some sort of interruption in that payment pattern. Well, the bank is obviously going to come and get your stuff, so you don't actually own anything until the final payment is made. And now we continue this pattern on for the rest of life. And we've gotten all these vehicles, but we end up with no money. People are going to spend more money in Canada financing vehicles over the course of their lifetime than they will ever imagine saving for retirement. And that is a sad story that we're here to help transform. That's what we're here for today. Well, okay, I'll tell you what. We don't have to borrow money from banks, do we? We can. You know, a lot of people decide, you know what, I don't want to pay money to a bank. I just want to save up my own money so that I can pay cash for the car because I don't want to make payments. I don't want to pay interest. Okay, that's fair. Well, let's examine this for a moment. This line represents deposits that are going where? To someone else's bank. They're saving the money and letting the bank have use and control over that money and harnessing that energy for whatever period of time, 2, 3, 4 years, however long it takes for them to pile up enough money for them to achieve the objective to purchase the vehicle in this example. So if you look at this stepping up here, doesn't that look very similar to a payment? It is, isn't it? It's a payment. And then what they do is when a problem shows up or an opportunity or they have achieved enough capital to acquire the vehicle, their objective in this example, they're going to draw the money down all the way down to zero and make one balloon payment and permanently transfer all that money away from their family and the opportunity to grow that money forever. And then they have to go back and work really hard and they have to save more money and send more money to someone else's bank so that they can prepare for their next major expense. And then they're going to draw that money down to zero and they're going to continue this pattern all the way through life. And if we look at it's. What do you call that? It's a reverse. Right. The person who is the saver doesn't actually wind up much or any further ahead of the debtor because they've saved up money and then they've permanently transferred away They've acquired all the vehicles, but at the end they have no money either. So this is the mistake that people are making and they're not seeing that. It simply doesn't have to be this way.

Okay, so the person who is the debtor, they actually see the interest because it's wrapped up in the payment. And the person who is the saver, they don't see the interest because.

They don't. They don't. They're not aware of opportunity cost. They're not seeing the interest that they're giving up the opportunity to earn. And the problem is, is that both methods are a permanent transfer away from, from you and your family. Every payment that you make is flowing to someone else's bank. It's a deposit in someone else's bank. Well, if that's the problem, we can really, we can really start to understand the problem of what's happening today, and most people are just not aware of it. Well, if the problem is banking because all the money is flowing to someone else's bank, what's the solution? The only solution is the process of becoming your own banker. The infinite banking concept.