Yes we pay out 40% to banks and 2.5% to our families for our future. Who’s getting rich because business model? Two associations are getting rich with this model and they’re banks (who keep us making payments out of our cash flow most if not all of our lives) and Wall Street.
You see any cash we do put away goes inside our 401k or IRA and gets invested.
Then compare that amount to just how much you have saved in your IRA or 401k. Which figure is bigger? With very few exceptions it works out to be our savings an amount that is small and banking payments a huge amount.
In other words we’re letting our most critical asset (cash flow in case you forgot) get systematically sucked out of our lives from the truckloads. Please understand it doesn’t have to be that way even though the conventional fiscal world will let you know there is nothing which can be performed. What could we do to start to instantly flip around these numbers in our benefit?
Open Up Your Own Bank!
No not a physical bank but rather a system of finance which you command. Either begin to put away cash flow in this pool of funds when you have hardly any funds to start or pool funds that are existing collectively. Now use these funds to fund your personal life. As an alternative to putting money in your 401k fund your own financing pool and then make loans to say buy your next auto.
Subsequently pay yourself back payment and exactly the same interest rate you’d have needed to pay an external lender. This system allows one to preserve and maximize your cash flow. Let’s also assume you borrowed $25,000 today to buy your auto. In the event this auto was financed by you through a bank that is traditional let’s say another $3,000 of interest over that was paid out by you same 5 year period which means your total loss was $23,000 when joined with the depreciation.
This really is an insidious wealth stealer that not many people think about but you’re not most folks. By keeping control of your cash flow and paying yourself back you’ve recaptured the depreciation you have endured on the automobile ($20,000) and picked up the $3,000 in finance charges you would have paid an outside bank. Your internal bank that you possess has picked up the $3,000 that would have been lost to a traditional lender.
When you pay your internal loan of $25,000 you’ve off recaptured the whole depreciation amount that the automobile will finally experience
Understand that enormous figure you’ve got paid out in payments? This is the method to begin to make your cash flow work for you and not for the banks as well as Wall Street. Tune into the following article where we’ll discuss where to start to pool those funds that’ll help you create tax free generational wealth.