Infinite banking is a process of using whole life insurance to finance your lifestyle and things you would normally finance through a bank. First, let’s break down four different ways to use infinite banking in business. Then we’ll discuss six ways you can use infinite banking personally.
Infinite Banking for Business
1. Startup Costs
When it comes to business, you can use infinite banking or cash value from your insurance policies for startup costs. You know that you need money to start a business. Instead of borrowing from someone else, just use your insurance policy. The money is right there, and you pay that money back to yourself.
2. Business Equipment
Use your cash value to finance those things for your business and pay the money back because, if you didn’t, what you would do is borrow the money or use it on a credit card and pay personal interest. Treat yourself the exact same way.
Now you can also use loans for one of the most important things, which is taxes. As a business owner, you pay a lot of money in taxes, whether quarterly or annually. Use the cash value from your insurance policies to pay off your taxes and maybe pay yourself your taxes on a monthly basis. That way, you have the money to pay for taxes the following year or next quarter.
4. Business Lending
Another of the ways to use infinite banking is business lending. Lend money to your business for expenses. You can lend money to your business for payroll. There are a variety of different loans that you can make to your business where you can just pay that money back to yourself as personal interest because it’s stuff that you’re doing on a monthly basis that you can use infinite banking to assist you with.
The best part about infinite banking is that, instead of going to the bank and paying them principal on the interest, now you’re keeping all that money in your banking system and paying yourself back the principal interest.
Infinite Banking for Your Personal Life
1. Buy a Home
You can buy a home using the cash value from your insurance policies, as long as you have enough money in the bank to finance the home purchase.
2. Buy a Car
Buy a vehicle for yourself, your children, or your extended family.
3. Medical Expenses
How many of us are burdened with medical expenses that sometimes we can’t pay? We end up charging them on a credit card and make monthly payments back to that card with principal and interest.
4. Home Improvements
Instead of going to the bank and getting a loan for repairs or remodels, get it from your policy.
One of the best ways to use infinite banking is to pay down your dept. Pay yourself back that principal and interest that you’re paying back to the bank, which is huge.
How many people are burdened with student loans? That’s a huge one.
The Proof Is in the Pudding
Everything we recommend here is because we know people are currently doing it themselves. And we never really recommend anything unless we’ve experimented with it first.
Again, the great thing about infinite banking is that the insurance company doesn’t ask you, “What is this money for?” That allows you to use it for whatever you want.
You can use your loans for a variety of different things, but in order for infinite banking to work, you need to be sure that you follow the three rules:
- Pay yourself first
- Pay yourself interest
- Recapture all the money so it comes back to you
This is just the tip of the iceberg when it comes to ways to use infinite banking. That’s because this thing can grow and maximize however you spend money. After all, everyone’s lifestyle is completely different from the next person, so what may be convenient for us may not be convenient for you. That’s why you should make sure you contact us and let us know exactly what you’re trying to do, and ask us
questions so we can answer them for you.