Becoming Your Own Bank is often referred to as The Infinite Banking Concept, and for good reason, the ways Becoming Your Own Bank can be used truly are infinite. There are over 100,000 families and individuals across the country using Becoming Your Own Bank for thousands of different reasons, many of which use their ‘banks’ to fund vacations.
How do you pay for your vacations? I’m guessing you use one of two methods
1. You save and save and save until you have enough to pay cash for everything from the plane tickets to the souvenirs.
2. You put it all on your credit card and pay it off over the next few years.
Becoming Your Own Bank offers a third option that combines the 2 options above and puts you in a spot to leverage your own money.
If you decide on option 1, that is commendable as you are not going into debt to vacation, however, after 2 weeks in a tropical paradise what do you have to show for it besides some pictures a souvenirs? The cash you used to purchase everything is gone. You will never see it again and it will never be available to make you any more money. This is know as lost opportunity cost.
If you choose option 2 you are able to enjoy the option of paying off your vacation over the next few years, but as we all know, a large portion of that payment is interest that you are paying to the credit card company. Your vacation just cost you more than it should have, and again you have no chance to ever use that money again, it’s gone.
Becoming Your Own Bank positions you on both sides of the banking counter. Much like option 1, you spend the time to build up your ‘banking reserves.’ When the time comes to take that dream vacation you put your banking suit on and loan yourself the money needed to pay for your vacation (everything from the plane tickets to the trinkets). Seeing as how you have just received a loan from your ‘bank’ you will need to pay it back, a loan repayment plan is drafted and you begin replenishing your banking system.
To compare to options 1 and 2 – after all is said and done you have all your souvenirs, pictures and memories PLUS all the money you spent on your vacation back in your account along with the interest you normally would have paid to the credit card company. To make option 3 even better you are not locked into any specific repayment plan. In other words you can pay back the loan to your banking system in 2 months, 2 years or 10 years.
This is just one of thousands of examples of how individuals and families use the Infinite Banking concept to, and I know it sounds cliche, take control of their financial situation.