In this episode, Nate Scott discusses how to retrain your mind to see finances differently and overcome limiting beliefs. He explains that our brains filter information that seems unimportant to simplify decision-making, but this often leads to scarcity thinking and missed opportunities. That’s why Nate introduces the concept of infinite banking as a way to retrain your mind to think differently about money.
He highlights three pivotal shifts in mindset: realizing you don’t have to take risks to make money, understanding that your money can serve multiple purposes simultaneously, and recognizing that business and investment opportunities are everywhere.
Ready to build generational wealth and financial independence through infinite banking? Schedule your FREE consultation now!
Key Takeaways:
- Our brains filter information to simplify decision-making and protect us, but this can lead to scarcity thinking and missed opportunities.
- Infinite banking can retrain your mind to think differently about money and see new opportunities.
- Shift your mindset to realize you don’t have to take risks to make money.
- Understand that your money can serve multiple purposes simultaneously.
- Recognize that business and investment opportunities are everywhere.
- Retrain your mind to see new opportunities and update your perspective on finance.
Episode Resources:
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LIVING WEALTH PODCAST
DOLLARS AND NONSENSE: EPISODE 238 TRANSCRIPTION
[00:00] Nate Scott:
In this episode, I discuss how to retrain your mind to see the financial world differently and destroy the limiting beliefs that are holding you back. I’m Nate, I make sense out of money. This is Dollars and Nonsense. If you follow the herd, you will be slaughtered.
There’s this theory that goes around out there, or there’s just perspective on life that you hear about some, you know, psychologists and philosophers talk about. Which is really the idea that we’re all kind of living in the Matrix. Like deep down we’re kind of living inside of the Matrix the way that the Matrix movies portrayed it.
Where we see the world as it’s presented to us. that there’s a lot of powers that be that can, that really control how we see life. And so you end up only really knowing what you know. You only see and are conscious of things that you know. And this can cause a problem financially because I think all of us would agree, and you may have heard this said before, that There’s, like, there’s a tiny sliver of information out there that you do know.
[01:03] Nate Scott:
There’s another small sliver of information out there that you know, that you don’t know about. And then there’s all, a world’s full of information. That you don’t know that you don’t know about and that this is an interesting way, of course, to live life and your brain likes it this way, by the way, and I’ve been learning a bit about this, with, you know, the function of your brain called the RAS, which, right now I’ve forgotten what that refers to, but that’s okay.
The RAS is essentially you, you live your life. And you are, your perspective is very much set by what your brain thinks is going to be important and based, and what it’s not going to be important, it ignores. And so, and it does this as kind of like a survival system. Like there’s so much information to take in every day.
From, you know, with what you hear, with what you see, with what you taste, with what you smell, there’s so much information that your brain has to filter through this. There has to be some sort of filter that filters all the information. The same thing is going to be true financially, where there’s all this different financial stuff going on that you kind of know about, you know, you don’t know about, and that you have no idea that you don’t know about.
[02:10] Nate Scott:
And there’s all these things that are going on and your brain is going to try to filter this information and it’s going to try to simplify it for you so that you can make simple decisions. Because it doesn’t want difficult, nuanced, fatigue decisions. It just wants simple decisions and tries to protect you overall.
And so this presents a world in which we get very much set in our ways. And when that occurs, life stops being abundant for a lot of people and starts to become very scarcely minded where you kind of just, you kind of hold yourself up and you feel safe with what you already know. And, you know, the people that we, you know, come into contact with, they’re just living abundantly.
Oftentimes, they have decided to step out of the matrix and, you know, into the real world if they could and, and try to build and take everything in. And so I wanted to bring this up to simply say that there are definitely limiting beliefs that people get that people hold onto that will destroy their lives.
[03:11] Nate Scott:
And this podcast episode is not going to be totally about that. But I’m saying, I think we would all agree that there’s been many things financially that we’ve believed. or maybe that our subconscious has believed to try to make us feel safe that has actually caused problems.
Like in this desire to feel safe and secure, we actually cause more problems in our life. We start to try to really hold and cling tightly to things to control outcomes in life that actually cause problems. And one of the things that I’ve noticed, and this is what we’re going to transition to in this episode, is that when people really start to understand what we do at Living Wealth, that’s called the infinite banking concept of becoming your own banker.
One of the most powerful things it does and we could line up client after client after client to interview all the best clients that have fallen in love with what we’re doing with them. Of course, you can line them up and they would all say things like, Hey, the real value that practicing infinite banking has brought me is that it has retrained my mind.
[04:17] Nate Scott:
I think differently than I used to. My matrix has changed. I see the financial world differently, and I’m able to take advantage of opportunities that I used to never even think about. I would never have even seen. And there’s something about this whole infinite banking thing that caused this change in my life.
And I find this to be very interesting. That’s not always the case. With every financial strategy is to see things differently. I think that’s one of the reasons just by the way that, Robert Kiyosaki’s Rich Dad, Poor Dad has really made such a big impact in the active investing entrepreneurial space is because he, there’s not a lot of meat and potatoes in the Rich Dad, Poor Dad book series by Robert Kiyosaki.
[05:01] Nate Scott:
There’s some, but a lot of it is paradigm shifting. It’s changing your matrix, seeing the world differently, destroying limiting beliefs. And that’s a lot of what infinite banking can do, I think, in a lot of people’s lives. And that’s the idea is that whenever this whole idea that your brain filters what it thinks it needs to filter to make sense of the world, The whole RAS system that exists in our mind.
You can liken it to, by the way, like we just bought a new Honda Odyssey for my wife of a navy bluish color. A Honda Odyssey because that’s her favorite color. And so we bought this new minivan decked out with all the fun stuff that you’d want in a minivan. And before we bought this brand new blue Honda Odyssey, who knows how many blue Honda Odysseys have driven past me and I haven’t given it one attention.
But now whenever we have this, when we’re driving around in our blue Honda Odyssey, I bet you, I see every single other blue Honda Odyssey that drives by, and this is how your brain works. It filters out a whole bunch of information that it thinks is unimportant and it randomly has some sort of filter to be conscious of things that it thinks are important.
[06:16] Nate Scott:
Like, hey, that I see my car being driven by somebody else. And somehow my brain thinks that that’s cool. Now, where at one point it didn’t, cause it was too much at the time to filter in. And so with all this being said, I think we have limiting beliefs financially.
I think a lot of them are, that’s one of the reasons why I don’t like the idea of retirement. I think that it produces a perspective on life that has a lot of limiting beliefs. that you essentially train your mind to set goals that are in the world of retiring that I think oftentimes will produce harm for someone’s life.
And the same thing goes with people who are afraid to ever take any risk with their money. There’s a lot of limiting beliefs that exist and infinite banking can often retrain your mind. To think differently about the world of finance. And that’s why it’s difficult to sell this thing just by the way.
[07:09] Nate Scott:
It’s an educational process that you have to go through to essentially kind of live in a new paradigm that looks a little bit differently. Here’s the biggest thing that I think when you start practicing infinite banking, that will start to shift in how you see money and how you behave with money.
The first one that I think shifts for most people, the first limiting belief that will change is that you will start to realize that you don’t have to take risks to make money. This is a new thing for most people because I feel like in the financial world, especially since the quantitative easing of 2008 and 2009 after the financial crisis, all the way up until the very, very recent history, when interest rates have gone up for the most part, during the last 15 years of life.
[08:00] Nate Scott:
The only way for your money to do anything of value for you was if you were to invest it at some sort of risk situation. Like US treasuries weren’t paying anything. Savings accounts weren’t paying anything. CDs weren’t paying anything. And so the only opportunity for most people was to put their money at risk in exchange for a return.
And that set a paradigm that most people felt was the only way forward. And whenever infinite banking shows up and there’s this brand new way that most people had never heard of, that their RAS has ignored and only lived essentially with like a filtered view of half of the world. The other half wasn’t even visible.
And so now whenever you start to live your life where you can have a policy that you’re funding, that’s growing without the typical risk factors of investing money in the typical ways. and there’s no volatility to it. It’s going up every single year. Maybe it’s earning four to 5%, something like that in, in growth inside the policy.
And that’s actually tax free growth. So if you were to go put it into a savings account or– It’s some sort of investment that would be a taxable place. You’d actually have to earn more like 6 or 7% just to be able to net, you know, the four or 5% that’s going into policy. So if you’re making like a tax equivalent, 6 or 7% on your money, you actually start to see the investing world differently.
[09:16] Nate Scott:
You start to weigh risk a bit in a new way. Like if you can earn that money without having to go out and take risks, then you can become more choosy with what you do take risks with. So just entering the world of finance with a foundation that’s built, which we hope would be the becoming your own banker concept, infinite banking.
You have this foundation built your perspective on what is a good investment and what is not can actually shift. Because you have this foundation of very solid, steady growth, and you can become more choosy and see the investment world differently from that vantage point. And so it actually starts to change how you think about things.
[10:02] Nate Scott:
Now the policy itself, we’re never going to make an argument that it’s the best investment you could ever make regarding some sort of– because by the way, policies are not investments. It’s life insurance now. And so we weren’t even allowed to call it an investment where I’d lose my license. And we said, come invest your money in life insurance.
It’s not, I’m not even allowed to say it. Don’t clip that and say that that’s what I said. and then sue me for it. But all that to be said, life is not an investment, but just the fact that you own the policy and it’s growing and producing value in your life and the cash value is increasing can help.
You change how you see the world of investing and take advantage of different opportunities that you used to really not care about, but your RAS, your sympathetic nervous system will start to find things that pair well with infinite banking. Whereas before you had it, it would never, it was just looking for a place to store some money.
So maybe it was content with things that you actually didn’t even want to be involved in to begin with. So the first thing that kind of goes by the wayside is that I have to take risks to make money. Well, once you actually are, once you’re in a position where you’re not having to take risks and you’re making money. That will change how you just come to the world more confidently overall.
[11:48] Nate Scott:
The second thing that you’ll start to learn when you’re practicing infinite banking that most people are very unfamiliar with is that your money can do more than one thing at a time.
It can serve multiple dollars or multiple purposes with one dollar. And so this is a very unique thing. This is honestly probably the most difficult thing to grasp for most people just initially learning about infinite banking is this very idea that I can have a hundred thousand dollars, I can put it into my policy and then I can borrow against the policy to go buy a business or something exciting, you know, whatever I want to do and.
Now I have a business over here that’s producing value and I have a policy here that’s producing value all with the same money. And so you start to see a world in which your dollars can do multiple things all at the same time. There can be a policy, you can have a death benefit, there can be cash value growth and stuff and things like that increasing in it.
[12:46] Nate Scott:
You borrowed against the policy to go fund something else. Maybe, hopefully it’s gonna produce value to you and maybe it’s gonna produce income for you and you use that income to pour back and pay back the policy and then go do it again. And what you essentially create is this world where your money doesn’t just have one job anymore. It can do multiple things.
This is a very unusual paradigm to have, a very unusual perspective because most people go through life with this paradigm that my dollars can each do one little thing. I can have my money in my checking account. I can have my money in my, you know, IRA. I can put it into my 401(k). I can put it into real estate and I have to choose.
Well, and mistakenly they’ll think they’ll, they’ll have that paradigm that filters on their life. And then when they hear about infinite banking, all that they think about is that essentially they bring in the old paradigm with them and they say, okay, if I fund this policy, Then that might be taking away from what I could be doing in the world of business or the world of real estate or investing in Bitcoin.
[13:46] Nate Scott:
I mean, whatever floats your boat and what infinite making tries to help people see is that no, That’s not really what’s happening in our world. The policy exists as the foundation to build on. It’s not the end all be all of everything we’d ever do. It’s just simply the funding mechanism for all the things that you want to do.
And there’s value in it because you can have your policy, you know, produce value in multiple ways, all at the same time with the same dollars. So it’s very exciting to see that. And I’ve talked on this podcast before about synergistic opportunities. Whenever you start to do infinite banking or really anything in the world of business in general, you start to see synergistic opportunities appear.
[14:28] Nate Scott:
So like, since you have this policy, I really do think your mind will start to retrain itself and to think, what can I do with this policy that would be a synergistic opportunity that, that I can do both at the same time and add value. And oftentimes, since that’s not an opportunity, like if you put money into your, you’re just stuffing money into your 401(k) and IRA, something like that.
And it’s just sitting in mutual funds. Your mind is not thinking about how it can produce synergistic opportunities, asymmetrical opportunities, because of your capital position. It doesn’t even think that way. Why would it? Why would it think that way when, when his main goal is to take the information that it feels like it is important?
[15:15] Nate Scott:
Why would it consider those types of things important if you have no investable capital to go take advantage of synergistic opportunities? In other words this is like the seen versus the unseen of infinite banking. Like we can see the life insurance policy. We can see the death benefit, the dividends, the cash value, the growth of it.
All those are the seen, but when the unseen piece is actually more valuable, it’s deeper, it’s what you’ll end up being able to do with the policies in place from now until the day that you die, that you were unlikely to do if you went another route, because mainly because your mind wouldn’t be–
if you made a decision that your job can only do one thing, like I’m going to choose to do– stuff money in my IRA, as opposed to doing a policy, the chances that you go out and see things in the big wide world of finance, that would be really fun to be involved in are pretty slim because your, your mind will filter them out. It’s not important to you. You couldn’t even take advantage of them, even if they came up.
[16:15] Nate Scott:
And then the last thing I wanted to say, whenever you start retraining your mind, is that you’ll start to see that business opportunities and investment opportunities are everywhere. And I know some people don’t believe me on that. I’m just saying they’re all around, especially for those that seek it out.
Once again, your mind has a natural biological mechanism that filters information that it doesn’t think you can take advantage of to try to keep your life simple, to try to keep you alive. It’s a biological fight or flight response style thing. And so it’s only going to pay attention to things that it feels are important.
If being in business and finding investment opportunities becomes important to your mind, it will start to see things. And it will start to find them everywhere. And I remember, essentially the moment, for me, I was actually reading a book called “Who Not How” that really put this into my mind once for all this whole idea that opportunities, business investing collaboration exists in so many ways all over the place.
[17:26] Nate Scott:
And it was really based on this premise of “Who Not How”, which is saying, “Hey, if you want to become financially independent, financially free, produce passive income, if you want all of these things, it can be difficult for you to sit down and figure out how can I do these things and it might be easier to think who can I partner with to achieve this end goal and you start to think in the way of collaboration.”
And so that’s one of the things if you’re sitting here with a whole bunch of money in policies that’s readily available, you can walk in and find collaborative opportunities. And so the question is, what can you bring to the table? Can you bring money to the table? Can you bring expertise to the table? Can you bring time and energy and work to the table? Can you bring connections to the table?
And that’s really the way when business gets really fun and when wealth building gets really fun is when you don’t do it alone. It gets way more exciting when you do it with someone else. That’s why I don’t like the individual retirement account and all these types of things where it’s just you and your little account.
[18:25] Nate Scott:
It’s like, no, if you have some sort of collaborative opportunities that exist, it becomes really exciting. Even if the collaboration is just between you and your spouse, by the way, even if you guys both just set out to do something together in the financial world, getting to investing together, getting into business together or something where you guys can both do it together, it starts to become more fun, in general, and, and your chances of success increase whenever you’re having fun.
If you are miserable, you’re that same RAS. That same fight or flight sympathetic nervous response that’s trying to keep you alive. If what you’re doing is not fun, it is actually making you miserable. It will actually try to sabotage it on your behalf. you’ll find people who are financially sabotaging themselves on purpose. And they don’t, not consciously on purpose.
[19:11] Nate Scott:
But subconsciously on purpose, because their mind is trying to protect them from something that they don’t see. And so, with that being said, whenever– so I build my policies up for a long period of time, by the way, I’ve had policies for 12 years and been practicing infinite banking for 12 years.
And for a lot of those years, I was focused on building capital. I wasn’t pulling money out from my policies, dumping money all over the place, you know, investing in every little thing that came my way. I was very patient about it. And I was just accumulating capital waiting for the right opportunities, waiting for the right collaborations to come into play that I really wanted to be a part of.
And it just so happens to be over the last couple of years, a lot of those things have come up. And here I am sitting in a position where I get to bring something to the table. I do have some business acumen. I do have some work I can bring to the table in some of these collaborations, but I certainly have some money, no question, to be able to bring to the table.
[20:16] Nate Scott:
And so it’s almost like flipping a switch. Like if you’re properly capitalized in life and you have access to a lot of money, that’s liquid and your mind is thinking of ways to put it to work. You can just come powerfully to various other scenarios that pop up and you can take advantage of things.
And it’s like flipping a switch because you can go from building capital to deploying capital. And just like that, your life can change. and you can go from having a little bit of passive income to a whole lot, where this year it would, it would likely be that my passive income is probably greater than my lifestyle this year depending on a few factors.
So that’s not going to be the way it is every year, but that’s all because of me being diligent for the last 12 years funding policies like it wouldn’t like if all I did was fund my retirement programs and mutual funds, honestly, maybe the balance in those funds would be bigger than it is inside the policy, but I, and that would be fine.
[21:19] Nate Scott:
I’m just really saying it wouldn’t be able to produce the amount of control, security and income that I’m getting from actually getting my hands on the money and deploying it in the right way. And so, all I’m bringing up is that there’s more to life than just simply numbers on a page. If you retrain your mind to think of an opportunistic, synergistic world, lots of things will change for you.
And that was my main moral of the story today, is that for most of the time, if you want to become something new, want to become more successful than you have been in any area of your life, but especially financially, it requires most of the time, a retraining of how you see things because all you know right now is what you know and what you have been doing.
[22:08] Nate Scott:
If you like what you know, and you like what you have been doing, continue doing it. If you would like to grow and enhance things, oftentimes it requires some sort of updating, of retraining your mind to think differently, and allowing your brain to see new opportunities and to update in a more efficient way.
And so that’s my real goal for everyone listening to this show, that you would come with me on this journey of infinite banking. Retraining your mind to see money differently, to see infinite banking for the way it really is. In other words, don’t come to learn about Infinite Banking and then just plug it in into the file folder that you already have for financial things.
That’s the idea. Like, essentially, the people who will never do this are the people who come in and think it’s gimmicky and scammy and that, you know, there’s a trick to everything as opposed to just retraining their mind to see things differently and if all they want to do is see the policy as a rate of return vehicle and compare that to other investment vehicles, they won’t retrain their mind to think of a policy in a different light. To help them achieve certain things financially, solving their problems. Of course, they’ll never want to do it.
[23:12] Nate Scott:
So anyway, I’ve rambled enough, thank you guys so much for being on this show. This has been Dollars and Nonsense. If you follow the herd, you will be slaughtered. And if you want to know more about how infinite banking can benefit your life and really what it’s all about, we have a course at our website, livingwealth.com/escapethebank
Feel free to sign up for that course. It’s totally free and I really think it does a better job than any other course out there taking you from A to Z on how you can benefit from infinite banking. So we’ll see you in the course!
