Understanding Fixed Relationships and the Concept of Fronting Shelves

Infinite Banking is an exercise in imagination. And in an act of imagination, Nelson Nash introduced a powerful example of how to capitalize on a whole life insurance policy and be an honest banker. He often referred to this concept as "don't steal the peas,” which he explains in his book, Becoming Your Own Banker.  https://www.youtube.com/watch?v=baPGoTOZ_H4 Today, we’re going back to this book, the “source” of IBC, and unpacking this idea of “don’t steal the peas.” That means examining the principles that make the Infinite Banking Concept work, and how understanding the fundamentals allows you to change your financial life. If you’re ready to jump into the conversation, learn from the original text, and gain understanding and wisdom… tune in now.  Table of contentsAn Exercise in ImaginationBeing a Good Business OwnerDon’t Steal the PeasWhat Does "Don't Steal the Peas" Have to Do With Life Insurance?Book A Strategy Call An Exercise in Imagination Nelson Nash said it often: Infinite Banking is an exercise in imagination. So what does this mean, exactly? The way Nelson saw it, if you understand how to think about problems, the solutions will become clear. Imagination is simply a method of thinking about things—it’s how we re-envision what we experience. That can be used to see problems in a new light, one that yields new results. [9:57] “Imagination is all about a thought process, and getting your mindset in a position to be able to see the capability and the possibility of what you can do in your financial life. And to recognize strategies and tools that will help you do that even better.” Imagination is how humans achieve innovation. Our ability to see problems in new ways is the reason we have advancements in math, science, technology, and any other field conceivable. We can say the same for finance. And Nelson Nash’s idea of “don’t steal the peas” is a perfect act of imagination that explains the foundation of IBC and why it works so well. Being a Good Business Owner Let’s imagine, together, that you are a business owner with a thriving grocery store. As a human being, you also have a need for groceries. So you are both owner and customer. That is assuming you’re not shopping with your competitor.  Keep in mind that as the owner of this store, you need a lot of capital to get started. You want a prime location, a pleasant building for your patrons to be in, and furniture to display your wares. Then, of course, you have the costs of keeping up the store like paying employees, buying stock, maintaining the building, and other overhead costs.  Since you own the store, you might think it’s no big deal to grab something off the shelves every once in a while. A can of peas, so to speak. You can simply write it off as a loss, right? The truth, though, is that it’s not a wash. You’re actually reducing your future value.  The thing about a business is that eventually, you want to sell it. Maybe not this generation, but it’s a possibility. And when you do, that buyer is going to look at your Profit and Loss statements. To get as much value as possible in the sale, you want to have proof of a profitable business. Yet if you spent your entire life taking groceries from the back room, you were actually stealing from your future self. In fact, you’re even reducing your present cash flow by taking what you want instead of paying for it.  Don’t let your business eat the cost. Instead, be an "honest grocer" by buying what you want. This will flow back to you now in your income, and later if you sell the business.  Don’t Steal the Peas If you're having trouble imagining how detrimental it can be to steal the peas, let's keep this thought going. Let’s talk about the peas, specifically. Let’s say a can of peas comes to your business through the “back door” when you buy it. And every can of peas that comes in through the back door costs you about 57 cents.