If you want to adopt a new financial mindset, you need new financial habits. As Nelson would say, "use it or lose it." Today, we're continuing the journey through Nelson Nash's catalytic book, "Becoming Your Own Banker," and discussing the role of habit, the power of habit, and what financial habits you need to implement if you want to gain the full advantage of the Infinite Banking Concept.
https://www.youtube.com/watch?v=8DLuniN2TjQ
Join this conversation to find out how to make Infinite Banking more automatic, and how to best manage your Infinite Banking system for maximum financial control.
Use It Or Lose ItSimplify Your Decision-Making ProcessIBC is a Personal Monetary SystemThe Power of CapitalizationBook A Strategy Call
Use It Or Lose It
“Use it or lose it” is a principle that applies to many things, including finance. For example, if you have vacation time, typically you’re required to use it within a specific timeframe or you lose it. If you learn a new skill, you’ve got to keep practicing it or you’ll regress. And as many people come to find out as they age, if you stop using your brain and your body, you start to lose some functionality, too. This is a part of the human condition, and to be aware of it and overcome it is imperative.
This applies to the infinite banking process because IBC isn’t a “set and forget” strategy. You’ve always got to be thinking about how your money is flowing, so much so that it’s a habit… NOT a background player. You’ve got to use your knowledge and skills to achieve the outcomes you want, or you’ll lose the control that IBC affords you.
On the flip side, your money is not affected by this human condition. You don’t have to “use or lose” your money. This is why many families struggle to save—because they’re always spending. IBC gives you capital and solves your need for financing through your carefully cultivated habits. However, that does not mean you need to finance every deal that comes your way. Having cash allows you to wait for the right deals to come your way, and the habits you create free up your mental energy to recognize those deals.
Simplify Your Decision-Making Process
One of the benefits of making habits (rather than automation), is that you get to simplify your decision-making process and conserve your mental energy. A great example of this is being a vegan or having some other dietary restriction. It usually comes from a place of principle, and it removes heavy lifting from your choices. When you’re a vegan, you know you’re not going to eat beef or drink milk–it’s a habit and lifestyle. It doesn’t matter who’s watching you or where you are, or even how you’re feeling that day.
There aren’t always equivalents to this in other areas of life. However, IBC can be the foundation of your financial principles so that your choices become a habit. With IBC, saving money becomes a habit. Then, with the mental energy you conserve by adopting this habit, you can spend a bit more energy and thought determining how to use your capital to your best advantage based on IBC principles.
[18:09] “Your habits ultimately determine the direction of your life, and they free you up to be able to have mental energy in other areas.”
IBC is a Personal Monetary System
What we’re getting at, ultimately, is that the Infinite Banking Concept is not simply a product. It’s not just life insurance. It’s a personal monetary system that will completely change the way you think about and use your money for the rest of your life—and hopefully for your future generations, too.
IBC gives you capital, which gives you control. And just like you want to use your knowledge and skills so you don’t lose them, remember, you also want to hold your money for the right moment. The habits you create—saving money instead of spending—give you the cognitive space to ask the important questions.
[34:45] “If you want a new idea to work for you,
