How To Use Infinite Banking in Real Life
The discussion on how to use the Infinite Banking Concept (IBC) is vast, so I wanted to share with you some real life, practical examples of how our clients have used IBC in their own lives.
And, with the advent of AI, there is no shortage of new experts. So, these are real life examples from over 20 years as an IBC Practitioner, with real people.
The Infinite Banking Concept ® (IBC)
The Infinite Banking Concept ® (IBC), as the name suggests, can be used in infinite ways. It’s all about how you think.
Hearing success stories from others may jog your thoughts and get your creative juices flowing. At a minimum, you can learn from the examples of other people.
How To Use IBC – Real Stories
Our clients have used IBC for everything from family vacations, to investments, to paying bills. Now of course the banking side of this is repaying the loans, so you don’t want to steal the peas.
These stories may give you some ideas, may be encouraging, and may inspire you to take action. Taking action is probably the most important step, because time will pass anyway, and you will finance everything that you buy.
Anyone can do this, but it takes a certain person that really wants to assume responsibility over their own financial future. It takes time, discipline and commitment.
Examples of Infinite Banking
So, here are some real life examples of how our clients are using Infinite Banking in their own personal lives.
Nelson Nash uses automobile financing in the book, Becoming Your Own Banker as the primary example, because most people drive and trade vehicles regularly. But, we know that vehicles are depreciating assets, and you can often finance them with the dealers at an even lower interest rate.
The bottom line on this example of buying cars is control.
Financing Vehicles
If you have kids, they will of course want to drive their own car when they reach driving age. What better way to teach them stewardship than by you being the banker for financing their first or subsequent vehicles?
Business Financing
If you’re in business or have ever dreamt of starting a business, why not use IBC for the startup capital? Many of our clients use IBC to finance inventory and for cash-flow. You may have experienced, it’s not easy to get a business loan, and banks don’t always like to lend to startups.
Family Fun
One client of ours used IBC to build a swimming pool for their home while the kids were in junior high and high school. This allowed the family to host friends and family, while keeping everyone happy, and close to home.
Funding College and Education
What about college and eductation costs? There are many ways to save for and fund college expenses, and still not impact your ability to get student loans and grants.
Another client used IBC to purchase a home for his daughter when she went to law school, versus renting. They saved rent, financing costs, and then had the option of selling or renting the property after.
Using Infinite Banking for Investments
Many of our clients have used Infinite Banking to purchase or fund investments like real estate, and even businesses. These methods can compound greatly over time with profits, and cost recovery.
The Difference Between Purchases and Investing with IBC
So, what’s the difference between using IBC for purchases versus investing? In both cases, control of the banking function is the primary reason to finance at home.
When making normal purchases, such as vehicles, you may experience a longer period of time to surpass other options of financing. However, you have control of the banking function, so you can determine the terms and over time will gain more wealh.
While using IBC for investing or business, there are multiple ways to increase, that may include profits and returns early on.
In either scenario, your money is working for you, protecting, saving and growing while you control the banking function. The first thing to understand is that you finance everything that you purchase, either by paying interest to others, or by giving up interest you could earn otherwise.
Equipment Financing
In a business or investment scenario, not only can you retain control, but you can increase your profits or the return on your investment. Imagine purchasing a piece of equipment that can earn you money, maybe a riding lawnmower or stumpgrinder?
Buying equipment using IBC provides liquidity and fast access to capital. Your can utilize your available cash value as a line of credit, while the policy continues to grow, and your equipment earns you a profit.
Why Finance Your Own Purchases?
- You don’t have to qualify with traditional lending requirements.
- You can finance at a competitive rate.
- You can determine the terms and repayment schedule.
- Your policy continues to grow without interrupting the compounding.
- You can recover costs and lost opportunity costs.
- Your dollars work harder, providing multiple uses.
- You don’t contribute to inflation.
You can use Infinite Banking for any reason you want, and that’s the key point here.
How Do You Take A Loan?
Taking a loan against your policy is really simple. It can be used for any reason, that you determine, without any further qaulifying.
This can be family financing, investing in the stock markets, investments in real-estate, business capitalization and funding, even financing your taxes. It’s up to you and your imagination.
Ways To Become Your Own Banker
How To Use Infinite Banking
- Build a family banking system
- Open a business or retail store
- Develop a software or online business
- Purchase business equipment
- Loan money to your business
- Pay for college or private school
- Finance your tax bill
- Anything that you can think of…
Using IBC During Retirement
Nelson Nash said the Infinite Banking Concept is an exercise in imagination, reason and logic. Hopefully, hearing how other people are practicing IBC has expanded your imagination.
And though Nelson Nash didn’t like the word retirement, considering it a government mandate, you can use IBC during retirement to boost your income and reduce your taxes.
Dividend Paying, Whole Life Insurance
Life insurance is a financial tool, learning how to use it for financing is something the industry never taught.
So, If you would like to know specifically how you can start implementing IBC in your life and haven’t read the bestselling book, Becoming Your Own Banker, I’d like to offer it to you at a discount. If you have the book and have read it, read it again, you’ll learn something new.
Your Competitive Edge
IBC gives you a competitive edge. Using the Infinite Banking Concept over your lifetime will help you retain your wealth and keep it in the family.
If you would like to know specifically how you can start implementing IBC in your life, schedule your 30 minute Family Banking Discovery Meeting. There’s no cost, and no obligation, it’s purely educational.
Until next time,
I’m your banking advocate,
Barry Page, RFC
Infinite Banking Concept (IBC) Authorized Practitioner
