How Family Banking Builds Lasting Wealth

Okay, let me hit you with something. You ever stop and wonder, just for a moment, why every time you make money, it kind of just disappears. So one minute your paycheck hits the account and the next it's gone. Whether it's mortgage payments or car payments or loans or in our case, random Amazon purchases at 2am but you know whose money doesn't disappear? The banks. They make billions. They make billions off of deposits that.

Other people leave there.

And so think about it. The bank takes your money, the bank lends it out, charges. Interesting. And then what do they give you back? Not a whole lot. I think it's about a fraction of percent in interest, which is like ordering a steak and the waiter brings you a picture of a cow. It's not very appetizing. And so rich. Let's dive in. Let's talk about what we've outlined in one of our books, and I'll invite you to reference the page number in the book that we're talking about. Now, given that this book was originally written for, you know, Canadian readers, this is applicable to the American folks that we serve. It's no different. Why don't you kick us off and talk to us about, you know, why this is a problem?

Well, we'll talk a little bit about why it's a problem, but we're also going to talk about, I think, a solution to that, which is integrating your. Integrating your family lineage, the people. And, you know, we say family, then we think, of course, about the biological aspect. But for some people, their friends, their. Their close acquaintances and colleagues are extensions of their family. But so think you can think of in that broader scope if you want. But we're finding a way to keep the money inside of this internal aquarium, a system where it never leaves and escapes your method of control. That's really the solution that we're looking at. So we. Our first book, Canadians Guide to Wealth Building Without Risk, of course, works just as well for Americans. In fact, we may be releasing the book with some modifications for Americans. This whole book, we have a chapter in this that's called the Family. It has to do with family banking. It's the power of family banking. And we've got an image there that we kind of discuss this to give people like that visual understanding of how we can link these things together a little bit. But fundamentally, when you have this flow of financial energy coming into your life and then it's flowing out. I did a live event here recently, Jay, and I use this example. Have you ever seen on your outdoor tap you can buy these like a diverter, essentially. So you, you know, you screw it on your outdoor hose bib and then, and you can make water go this way and go this way. So you can connect multiple hoses and they have like, their independent valve on it. So you can have some water diverted that direction and diverted that direction. Now, when you do that diversion, if you turn each one on, let's say halfway, you get a lot less water pressure going both directions, right? But there's still water flowing in both directions. So just imagine that you had this tap, and right now all the water's coming out of the tap and it's all flowing out of one hose, and that hose is going into your regular bank, right? That's what's happening with your money today. So now you're going to go and take the hose off and you're going to add the diverter on there. So now you can, you can adjust, start to begin to adjust the flow of financial energy so some of it can divert the other direction. So you're starting to take the pressure off of what's going to the regular bank and you're starting to slowly, over time, increase the, the diversion of water and the pressure that's now going into your family system. That's, that's the model that I want you to think about as you're, as you're listening to this. It's not going to happen overnight. You're going to have water going both directions. And, you know, some points in time in your life, you may actually have to say, oh, geez, we have to go backwards a little bit. We have to turn the diverter back on over here at the regular bank for a bit. Right. We want to be able to control. You want to have that independent mechanism of saying, how much flow do I want going this direction or that direction? You know, banks use other banks all the time. They have overnight lending. They work with one another to support lots of initiatives. There's no reason that you can't use another bank's money to go do something that you want to do. But 100 difference between having to use it and choosing to use it. Okay, really important, I want everyone listening in to really pay attention to that. There's a difference between the requirement that you have to use someone else's money and you have to beg, borrow, steal, do whatever you need to do to get access to the capital because someone else has developed a big pile of money and you don't have a pile big enough to tap into on your own. What we want to move you from is a requirement to do to the choice to do. That's a part of what this process is all about as you learn it in your life.

I love that. And we went on further to expand on the family banking system in our latest quarterly book release titled Don't Spread the Wealth. We're going to put a link in the video. In fact, you may have already seen it come up where you can just get that link. Go directly, get your hands on a copy. The book takes 90 minutes or less to read. It's a quick read and it's intentional because we want to create insight and questions and conversation. And so be sure to get your hands on a copy of this book. As you're watching this video and you find yourself thinking, okay, I really want to dive deeper into this as it relates to my family. Just head on over to the link that you see on the screen here and get your hands on a copy of this book and we'll ship it wherever it needs to go.

Yeah, don't spread Wealth.com is a great place to go get it. Now, in that environment, you'll also get access to some great bonus material, Jason. There's a whole 15 page guide on recommendations and a and a model on how you could begin hosting family banking meetings in there. It's a great start to help kick off these conversations with your family members or your close associates, the people that you most love dearly, that you want to embrace and have them embrace this concept with you in your life.

So let's start teaching.

Let's talk about it.

What are the five phases of the family banking business?

What we're seeing here is kind of the timeline phases of life. Again, where you're starting at is where you're starting at. We don't know what your age is or where you're at, but this is looking at the typical journey of the average North American. You're here, you're single, you're doing life, you're trying to get out there and make your way in the world. Eventually you get a spouse, you get married, you're buying groceries. Sooner or later you have a couple little rugrats for Jason, you have two, and then you end up with twins. So you double the size of your family very quickly. That happens to many people. And then your family and the people around you expands. They have their own children. You get this big nucleus and it builds and builds and builds. So these are the different stages of life. It really begins here at capitalization. You can't have something. If you don't get it started, putting some capital in, in our, in our diagram here, what you'll notice is you're seeing, you know, this arrow with, with money going in, you have to put something in to get it started. You got to start that business structure. So referring to Nelson's book of becoming your own banker, he really identifies this a lot. In the grocery store example on page 15 and 16, he expands on how. What we're talking about there. Yeah, you also see an arrow is this ability to access capital. So this would be like taking a policy loan or the ability to tap into your system by using the power of collateral. You may not have access to the same amount that you put in. Notice that the arrow size isn't as large. So just giving a representation there. Because we're in that buildup phase now. We're moving on. You're getting a lot of practice. You're moving through different stages of life. You have different life needs, a lot of buying, a lot of expenses, a lot of activities, investments in your future that you're making vacations, all of the amazing things that you're going to do in your life. You're still continuing that capitalization. You continue doing it because you got a lot of life ahead of you. But you're able to access more and more from that system as you begin to grow through time now you start developing your family. You have new people coming on board. You're continuing to capitalize. You've built in really solid habits. You have conquered Parkinson's law that Nelson talks about in his book. You've really spent time working on your behaviors. And because of that, you're going to continue funding your system, putting premium into place, capitalizing on an ongoing basis like. Like clockwork, because you recognize the power of what it's doing. And now you're able to access and tap into the same amount that you're putting in, in greater. As you begin building throughout your system, then we shoot forward to a later stage in life at passive income time. Your deposits of premium, your. Your regular recurring injections of capitalization have never changed. But, but the amount of volume of capital you have access to has changed. You have way more accessibility because you had this consistent process over time. That's kind of what we're looking at as we carry this forward. Eventually we're gonna be talking about one another. You know, Jason and myself, you watching this right now. We're gonna be talking about you in the past tense. You're not gonna be with us anymore. And Neither will I. We're gonna have a legacy event there. Nelson called it graduation. And when that legacy event happens, it's going to happen regardless of is there going to be a big fat chunk of lump sum money that shows up to solve problems when we go, or is there not going to be the case? That's up to you to decide. It's only you that can dictate and control those terms. This is just understanding how you can do it effectively and efficiently while maintaining control over life's usage of money. So when that graduation happens, we're going to see a tax free event and then we're going to see capital come all the way back in and reengage with the system where now you have these other younger family members, your own children, your grandchildren, they're in perpetuity, continuing that on. They're going to receive this injection of capital. And if they know what to do, they understand the stewardship that's required. They have the mindsets necessary. They will continue that cycle and they will move through that same process that you did, and then they're going to see that cycle repeat. And we're going to get into this repetition zone. But that repetition can only take place if we have the right things in mind. And it's not about the financial vehicles we're using, it's about the mindset that we're implementing at the family level and with the people that are participating inside of this structure that we're talking about.