Becoming Your Own Banker, Part 21: Cost of Acquisition

Financing costs are much more than just interest rates. First, there is the time required to obtain the financing, and then, often numerous steps to qualify and negotiate. This financing is very expensive when you account for the number of executives whose time is required for the endeavor. https://www.youtube.com/watch?v=-MmWlkTQsWE Infinite Banking overcomes this cost of acquisition, allowing you to obtain financing quickly and make timely decisions. In this episode, you'll recognize that time is more expensive than money as we dissect the true cost of acquisition in both personal and corporate finances. We'll help you understand that every minute and mental whack we spend on acquiring capital has a significant cost, which often goes unnoticed. Together, we'll draw wisdom from Nelson Nash's "Becoming Your Own Banker," reminding us of the importance of seeking reliable information and being confident in understanding financial concepts.  In a world that's always changing, waiting too long can cost you. That's why we're bringing you the Infinite Banking Concept, freeing you from the shackles of loan qualification and liberating your mind to focus on life's bigger decisions. We'll show you how to align your actions with your values and run your life like a small business, emphasizing the fundamental role of finance and whole life insurance policies. Tune in today as we continue our journey through Nelson Nash‘s book, Becoming Your Own Banker, to reveal yet another often invisible, yet powerful advantage of Infinite Banking. Cost of Capital vs. Cost of AcquisitionFinancing Takes TimeWhat Can You Do with Your Time? Book A Strategy Call Cost of Capital vs. Cost of Acquisition We often talk about the cost of capital in discussions of Infinite Banking. After all, there’s an interest cost to all of your financial decisions, simply because if you’re not paying interest, you’re passing up the ability to earn interest. The cost of acquisition is just a little bit different, yet it’s just as important in discussions of wealth-building.  Simply put, the cost of acquisition is the cost of your time, expertise, and skills. What is it costing you in non-tangible assets to acquire/do something? If you’re jeopardizing your non-material assets in pursuit of savings or a deal, is it really worth that cost? This is an especially prudent question when you consider how much time you’re going to spend doing something, versus how else that time could be spent.  You can also apply this idea to spending. Say you’re committed to finding the cheapest gas to fill your car with. In doing so, you’re successful, but you spend 30 minutes or more driving around to find it, and deplete your tank further than if you had just stopped at one of the first places you saw. This takes time and mental energy, and what do you really save? There is a cost of time and energy here that doesn’t necessarily make the savings worth it.  When it comes to wealth, you have to think about the big picture. Time is money, and you just consider this in your financial decisions, too.  Financing Takes Time Financing takes time, but time is money. That’s the lesson here. Consider you’re seeking to finance a major purchase, like a car. You have an Infinite Banking policy, but you hear that the bank can do half a point better. So, you decide to speak with a lender and jump through their hoops. This can take days and time and effort, which keeps you away from your regular routine. You’ve got to prove that you can repay the loan, supply paperwork, and more. In the end, your payment isn’t much different than if you had simply financed through your whole life insurance policy, with no hoops to jump through, and maybe you could have put that additional time towards a more lucrative business decision.  In some cases, maybe the bank financing would still be worth the time. The loan may be several points better,