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If I asked you how you were going to finance your next car, chances are, I would get one of three responses:
• Bank / Lender / Dealer Financing
• Pay Cash
• Lease (then get another or buy it out)
If I asked which the best method is, most people would say “paying cash” thinking that saving on paying interest to a financial institution was a good thing. The problem with paying cash is that you lose opportunity costs – what your money could have made for you if invested properly – and it will take a long time to rebuild those savings. I already know what you are thinking. 🙂 You are thinking, it’s not a good time to put money in the markets, and you don’t even know how. Don’t go there.
Let me introduce another perspective. Let’s say you borrowed the money from yourself and paid yourself interest. Now you are thinking that you don’t have the money. Don’t go there either.
My only question is would you rather pay yourself interest where your money grows for you, or pay interest to an impersonal lending institution where your money grows for their stockholders and pays hefty executive salaries?
Here is what’s even better. If you pay yourself interest instead of borrowing money and paying interest to someone else, in essence you make a profit AND you don’t lose money in interest. That’s a double win, and it doesn’t happen if you pay cash. In fact, it will work so well you will want to buy another car as soon as you are finished paying yourself back!
The process is not difficult if you learn how. This powerful financial strategy is called the Infinite Banking Concept and was developed decades ago. Why have you not heard of it? Perhaps it’s because it’s not something that mainstream financial advisors understand or want to share (there aren’t big commissions for them associated with it.) Either way, it is a financial strategy that has been used by the wealthy and the financially savvy for decades – even dating back to the Great Depression.
If you want to talk to someone without obligation and get a personal preview as to how the Infinite Banking Concept can radically change your financial future, contact me.
If you’d rather pursue learning about Infinite Banking on your own, there are two books on the market that can help you. The first is the original by Nelson Nash, called Becoming Your Own Banker, and the second is Bank on Yourself by Pamela Yellen.
And if you are ready to make that car purchase, can I encourage you to hold off for a few and do some research? It might save you tens of thousands of dollars.