If you’re an average adult in America today, you go out in the world and work. You get our money and just spend while hoping there’s money left over at the end of the month to put into savings.
I’m telling you that’s an easy way to find yourself in financial slavery.
Think about it.
If you were to sign a piece of paper and that paper was a contract saying that you would be my slave and you sign it, everything you produce would belong to who? It would belong to me.
Yet, you go out and you do work in the world and everyone else (the food people, the car people, the mortgage people, and the tax people) are the ones who get the money.
You did all the work but who got paid?
Everybody else. There’s no difference between having one master and many masters!
Now, let’s take a look at a few rules that can and will change your financial game entirely, and help you break free of your financial bonds.
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 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 follow these three rules, you will have no problem becoming successful and making a profit in your banking business. These 3 rules are the key to your financial future; unlock it.
