Three Secret Rules of Money Success

Rule Number 1 is to pay yourself first when you make money and use that capital.

There are not many businesses that are able to move forward and profit without capital, either sweat equity or money. Either way, it needs capital in one sense. In the banking business, we need money. And we do that by paying ourselves first, not last. 

Rule Number 2 is to start paying yourself interest when you use your own money. 

The second rule is fairly obvious. 

We know that when we borrow money from a bank we pay them interest. When we borrow money from a credit card we pay them interest.  When we take out a student loan we pay them interest. We know that when we use other peoples’ money we pay them interest. 

But–how many times have you used your own money and paid yourself back with interest? If you’re like most people, the answer is probably never (before learning to become your own private banker).

It’s just something we have never thought of doing. We haven’t been thinking like we are in the finance business. 

However, our money is just as valuable as the bank’s money. In fact, it should be more valuable–because you worked for it. 

Rule Number 3 is to focus on recapturing money not just buying assets. 

The majority of financial advisors and people we talk to about money are always trying to get you to buy assets, whether they are stocks, bonds or real estate.  They’re trying to get you to buy an asset with your money. 

I’m not saying those are bad things. In fact, there’s a way to do all those things using a life insurance policy. 

But as far as banking is concerned, it’s more important to utilize a systematic approach to how you finance everything you buy and get all the money back.

If you know anything about banks, you can ask yourself: how many assets a bank needs to buy to make a profit? 

They don’t need to buy any and neither do we. 

The goal is to get all the money back plus make a profit every time we use our money, just like the banks do when they lend us money. 

So as far as banking is concerned, the focus should be on recapturing money and making a profit in the money business instead of relying on buying assets. 

Once again, I am not against buying assets. But it isn’t the most profitable way to utilize your hard-earned money.

If you would like to learn how to use a life insurance policy to buy assets more effective, send me a message and I will connect you with an expert at this.