Bank On Yourself

| January 1, 2012

Bank on yourself is a new approach that allows you to become your own banker. It is a new financial tool that advises on saving and accumulates money in a tested and reliable way. It deviates from the traditional stocks, real estate and other common investment options and strategies.
The system works in various ways. It allows you to create your own financial system so that you can get back your entire purchase price from cars, houses, college education and even medical expenses.
This new approach also allows one to create a savings fund each year. It also guides on the establishment of an emergency fund.

It gives direction on how you can legally reduce your taxes. This is an avenue that is wisely used by those who are aware of it, and ignored by many.

When you borrow money from a policy based on the bank on yourself concept to purchase a major asset like a car, or a house and pay back the loan with interest, you could eventually get back your money, plus all the interest paid. In other words, you become your own source of funding. In doing this, we reduce and eventually eliminate the control that financial institutions have over us. For those who may be financing a major purchase the ordinary way, through banks or any other financial institutions, you could actually put the interest and finance charges into one’s own pocket. This can thereafter be turned into an additional source of income for the future.

With the bank on yourself concept, one can have a solid and predictable retirement plan that will last as long as you do. It allows one to turn away from the anxiety, risks and unpredictability of the Stock and Real Estate market. It is easy to save using this method without worrying about fluctuating interest rates and risks.
The concept is radical, I must say. We are advised that instead of getting a loan from the bank, you have your own plan and borrow money from yourself. And after taking the loan, you repay yourself and the principal! It kind of makes sense because we have been conditioned to accept that loan repayments and interests are only paid back to the bank.

Another added bonus is the privacy clause. By relying so much on banks for any major transaction in our lives, our financial lives and habits are an open secret. Our credit ratings, loan defaults, overdrafts, and any other dealings are not secret. By adopting this new concept, the transactions are private and controlled by your own bank. You can withdraw any amount of money you want whenever you want without being limited or restricted based on your past financial history.

This concept is not a magic solution to problems. It takes patience and time to cultivate it. It could take about 7 years before one sees the fruits and benefits. It is a different way to go about self finance. If you are already disciplined in saving, then it would be worth it to look at this new concept.

Category: Finance

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