The Money Advantage Podcast

Imagine a world where your family’s financial future is not dictated by banks but built by you. What if you could create a self-sustaining system provides security and offers opportunities for generations to come? For us, this is not just a concept—it’s our reality through family banking. Let us take you on a journey into how we built our Marshall Family Bank using the Infinite Banking Concept and how you can start building one too. https://www.youtube.com/live/uj_1A7Prpr8 Welcome to the Money Advantage! Here, we equip you with practical financial strategies to take control of your wealth, avoid common pitfalls, and create a legacy that lasts. Today’s focus? Family banking—an approach rooted in Infinite Banking that allows families to take control of their financial futures, break free from traditional banks, and pass wealth along for generations. Today, we’re discussing the Marshall family Bank —a system we’ve developed using Infinite Banking through specially designed whole life insurance policies. The Power of Family BankingHow We Started Our Family BankPolicy DetailsLessons Learned Along the WayStarting Early Pays OffReaching Break-EvenThe Generational VisionChallenges and SolutionsOvercoming Analysis ParalysisPatience is KeyBehavior Over DesignHow to Start Your Own Family Bank1. Clarify Your Goals2. Work with a Knowledgeable Advisor3. Get started and Stay Committed4. Educate Your FamilyThe Case for Family BankingBook A Strategy Call The Power of Family Banking In this article and podcast, we’ll reveal how we established our family bank, the lessons we’ve learned, and actionable steps to start your own journey. This approach has allowed us to: Store, access, and grow our capital sustainably. Fund both personal and generational goals. Create a lasting legacy of financial security. Family banking is more than a strategy—it’s a lifestyle. At its core, it’s about reclaiming control of the banking function in your life by creating a financial system that works for you, not against you. Infinite Banking, the foundation of family banking, leverages the cash value of whole life insurance policies to build a pool of capital you can access and use throughout your life. Unlike traditional banks, this approach allows you to: Earn uninterrupted compound growth on your money. Borrow from your policy while it continues to grow. Create financial stability for future generations with a guaranteed death benefit. Nelson Nash, the founder of this concept, famously said, “Compounding is the eighth wonder of the world.” Infinite Banking magnifies this principle by letting you benefit from uninterrupted growth over decades. How We Started Our Family Bank Our journey began in 2012 with a single whole life insurance policy funded by a $10,000 annual premium. At the time, we were searching for a safe and liquid place to store our savings. At the time, we were overweighted in gold and silver, which fell short in terms of accessibility and stability. This led us to Infinite Banking. With this system, we gained: Liquidity: Instant access to cash when we needed it. Growth: Tax-advantaged, consistent growth over time. Legacy: A financial tool that benefits our family even after our lifetime. Policy Details in the YouTube video link near the top of this article, you can watch the live recording of the podcast episode to see the high-level details of our family bank as of Dec 2024 and see a deep dive into the annual statement of one of our policies. Lessons Learned Along the Way Starting Early Pays Off If there’s one thing we wish we could change, it’s starting sooner. The earlier you begin, the longer your policies have to grow and compound. As we’ve learned, compounding is a slow process initially but accelerates dramatically over time. For instance, in one of our policies, the annual cash value growth now exceeds the premium we pay—one of the “break-even” poi...

Imagine being told that the best way to help others is to first help yourself. This timeless piece of advice, often heard during airline safety briefings, holds true in the financial world. By taking control of your finances and prioritizing sound strategies, you position yourself to help others and contribute to society at large. The principles of Whole Life Insurance and Austrian Economics follow this same logic. They empower individuals to create stability and independence while reinforcing the broader economy's strength. https://www.youtube.com/live/Km2eIkcoRu4 Today, we’ll explore how Whole Life Insurance aligns with Austrian Economics, offering a roadmap to financial freedom rooted in liberty, responsibility, and sustainable practices. This combination challenges the traditional norms of Keynesian economic policies and provides a better path for individual and societal growth. Why Whole Life Insurance and Austrian Economics MatterUnderstanding Austrian EconomicsWhole Life Insurance as a Sound Money SolutionThe Infinite Banking Concept and Austrian EconomicsThe Clash Between Austrian and Keynesian EconomicsThe Power of Whole Life Insurance and Austrian EconomicsTake Control of Your Financial Future Why Whole Life Insurance and Austrian Economics Matter If you’ve ever felt like the financial system is working against you, you’re not alone. Many people are disillusioned by the boom-and-bust cycles, inflation, and instability caused by government intervention in the economy. Austrian Economics offers an alternative approach, emphasizing free markets, individual responsibility, and sound money principles. Whole Life Insurance complements this philosophy by providing a private, stable financial system that empowers individuals to take control of their banking needs. By understanding how Whole Life Insurance and Austrian Economics intersect, you can: Escape the pitfalls of inflationary banking practices. Build lasting wealth on a foundation of stability. Participate in a financial system that prioritizes freedom and personal choice. Let’s unpack these concepts and discover why they’re the perfect pairing for those seeking financial independence. Understanding Austrian Economics Austrian Economics is built on the principle of liberty—freedom for individuals to make choices that benefit themselves and, in turn, society. Unlike Keynesian Economics, which relies on government intervention to manage demand and manipulate the money supply, Austrian Economics trusts the free market to allocate resources efficiently. This philosophy emphasizes: Individual Choice: People know their needs best and should be free to make decisions without excessive interference. Sound Money: A stable currency that retains value over time is essential to economic stability. Market Efficiency: Free markets naturally balance supply and demand, avoiding the artificial booms and busts caused by intervention. These principles align with the structure of Whole Life Insurance, which operates on sound money practices, making it an ideal financial tool for those who value the Austrian approach. Whole Life Insurance as a Sound Money Solution Whole Life Insurance is unique in that it mirrors the values of Austrian Economics. Unlike banks that engage in fractional reserve lending—creating more money than exists in deposits—life insurance companies operate within the constraints of real savings. When you borrow against your Whole Life Insurance policy, you’re not inflating the money supply; you’re using funds backed by actual value. This approach eliminates the inflationary pressures associated with traditional banking systems and ensures that your financial foundation remains secure. By adopting Whole Life Insurance, you take control of your financial destiny, just as Austrian Economics advocates for individuals to take control of economic decisions.

Imagine two families, both immensely wealthy at the height of their fortunes. One family, the Vanderbilts, saw their immense wealth squandered within just a few generations. By the time they held their first family reunion a century later, not a single millionaire remained among them. In contrast, the Rockefeller family has continued to grow its wealth and influence across seven generations. What was one of the key differences? Family meetings. https://www.youtube.com/live/2eKMQKYyxEA The Rockefeller family prioritizes connection and communication, meeting twice a year with as many as 100 family members to stay aligned on their mission, vision, and values. This intentional practice has enabled them to preserve and grow their wealth over generations. Today, I want to share with you how you can implement the powerful practice of family meetings to strengthen your relationships, instill financial stewardship, and set your family on a path toward multigenerational success. Why Family Meetings MatterStructuring Family Meetings for SuccessWeekly Family Check-ins: Building Habits EarlyExecutive Leadership Meetings: Aligning as a CoupleFamily Summits: The Big PictureGovernance and Decision-Making: Preparing for ComplexityThe Ripple Effect of Family MeetingsStart Your Family Meeting Tradition TodayNext Steps Why Family Meetings Matter Whether you're just beginning your wealth-building journey or you're already managing a family enterprise, creating a system for effective communication is essential. Family meetings are more than just check-ins; they’re a foundation for unity, collaboration, and intentional planning. In this article, I’ll walk you through why family meetings are vital, the different types of meetings you can hold, and how to structure them for maximum impact. By the end, you’ll have actionable tools to start your own family meeting tradition, no matter the stage of life you’re in. Let’s dive in. Structuring Family Meetings for Success Weekly Family Check-ins: Building Habits Early If you have young children, weekly family meetings are the perfect way to establish a rhythm of communication and problem-solving. Here’s a simple framework we use in our home: Highs and Lows: Start by having each family member share the best and most challenging moments of their week. This fosters gratitude and empathy while helping everyone feel heard. Calendar Review: Go over the upcoming week’s schedule. Discuss events, appointments, and any changes to the usual routine. Feedback and Improvements: Create space for family members to voice concerns and suggest ways to improve the week ahead. These meetings don’t need to be long—five to ten minutes is enough. The key is consistency. By practicing this habit regularly, you’re teaching your children invaluable skills in communication, decision-making, and teamwork. Executive Leadership Meetings: Aligning as a Couple If you’re managing a household or business with a partner, a weekly “executive meeting” is crucial. During this meeting, you can: Review your finances, including spending, income, and progress toward financial goals. Plan your calendar and set priorities for the week. Discuss any challenges or decisions that require attention. This meeting ensures you’re aligned as a couple and creates a foundation for leading your family effectively. Family Summits: The Big Picture For families with older children or adult children, an annual or quarterly family summit can be transformative. These larger gatherings provide an opportunity to: Reflect on the past year: Celebrate milestones, successes, and lessons learned. Plan for the future: Discuss family goals, upcoming projects, and financial strategies. Reaffirm your family’s mission, vision, and values. Family summits are also an excellent time to educate the next generation about financial stewardship. You can share family history,

Explore the resilience of whole life insurance during economic chaos, tracing its role from WWII to today’s financial uncertainties. Discover how Infinite Banking offers stability amidst potential dollar fluctuations and high national debt. Delve into the safety provided by cash value life insurance against other unpredictable investments. The discussion highlights the importance of an abundance mindset and effective financial strategies to navigate and optimize personal finances during turbulent times.

https://www.youtube.com/live/34XTxCC807g In seventh grade, Mark Anderson mowed lawns for $3.50 a yard, saving diligently for his first major purchase—his future wife Amy’s engagement ring. Fast forward to today, Mark and Amy Anderson, founders of Anderson Technologies and Anderson Archival, are passing down a much larger legacy: a thriving multi-generational business. Their story, filled with grit, humility, and purpose, offers profound insights for business owners planning the delicate handoff from one generation to the next. The Power of Multi-Generational BusinessThe Founding Story: Building with PurposeGrowing a Family While Growing a BusinessInviting the Next Generation: Creating Opportunity Without PressureThe Transition Process: Planning for SuccessThe Role of Legacy and Long-Term VisionA Roadmap for Multi-Generational SuccessBook A Strategy Call The Power of Multi-Generational Business Transitioning a business from one generation to the next is not merely a transaction; it’s a journey. It’s about more than dollars, contracts, or even systems. It’s about preserving passion, fostering innovation, and creating a legacy that spans decades. As Mark and Amy shared on The Money Advantage Podcast, their experience highlights key strategies for navigating this process with intention and grace. Whether you're the founding generation or preparing to take the reins, this article will guide you through the pivotal moments of transitioning a family business. By the end, you’ll feel inspired and equipped to foster generational success while ensuring your business thrives in capable hands. The Founding Story: Building with Purpose For Mark and Amy, entrepreneurship began with a shared passion for problem-solving and a knack for technology. Starting Anderson Technologies in 1995, they combined their unique strengths—Mark’s entrepreneurial mindset and Amy’s technical expertise. From humble beginnings in their home office, they built a business focused on serving others, whether managing IT systems or preserving priceless family archives. Their story reminds us that successful businesses start with a commitment to solving real problems and serving people, a foundation crucial for enduring success. As Amy aptly said, "Small business is the backbone of America." And with that ethos, they instilled purpose and pride into their work from day one. Growing a Family While Growing a Business Starting a family while running a business added complexity—but also clarity. For the Andersons, family always came first. They transitioned to a separate office space, carefully balancing the demands of entrepreneurship with parenting. A pivotal decision was fostering their children’s understanding of the business without pressuring them into it. “We didn’t want the business to ruin our kids’ lives,” Amy reflected. Instead, they modeled hard work, character, and the joy of serving others through their work—values that naturally attracted their children to consider joining the business. Their story shows that the early years of business ownership aren’t just about building systems; they’re about building values that can be passed on to the next generation. Inviting the Next Generation: Creating Opportunity Without Pressure For years, Mark and Amy assumed they would sell their business. That changed when their daughter Hadley and son-in-law Corbett surprised them with a question: “Would you ever consider letting us join the business?” Rather than offering immediate ownership or privileges, the Andersons maintained a structured approach. Hadley and Corbett applied for roles within the company anonymously, undergoing the same rigorous hiring process as any other candidates. This ensured respect from the existing team and set the stage for them to earn their positions through merit. This careful balance—providing opportunity without entitlement—is a model for any family business.

It helps to know where the insurance company puts your premiums to work to understand how an uninterrupted compound interest life insurance policy can reliably build wealth. https://www.youtube.com/live/zoWGLogOJk4 When it comes to financial security and control, many people seek clarity around Infinite Banking and the role life insurance plays. The idea of using whole life insurance to gain financial control, create guaranteed growth, and build generational wealth sparks curiosity about how life insurance companies actually manage the funds. In today’s post, we’re exploring where life insurance companies invest their money. Many people bring misconceptions into conversations about finance, especially around life insurance. They’re often convinced by past experiences or teachings that certain financial products or strategies are inherently “better.” However, as Bruce Wehner shared recently on our podcast, one of his clients experienced a breakthrough moment—a realization about why using whole life insurance with a shorter, more limited period to pay premiums actually limited his options later. With a longer, more flexible term, he gained more control, allowing him to maximize the power of his policy long-term. Moments, like these highlight that, sometimes, truly understanding a financial concept, requires experience. In this blog, we’ll address these essential questions: Where Do Life Insurance Companies Invest Their Money? Why Not Indexed Universal Life (IUL) for Infinite Banking? Mutual Companies vs. Mutual Holding Companies: What’s the Difference? Is the interest on a life insurance loan variable, and can it change while there’s an outstanding loan? Where Do Life Insurance Companies Invest Their Money?Bonds: The Foundation of StabilityMortgage-Backed Securities: Real Estate Without the RiskDerivatives: Careful Risk ManagementPolicy Loans: A Win-Win InvestmentWhy Not Indexed Universal Life (IUL) for Infinite Banking?What Infinite Banking Actually IsWhy Whole Life Wins Over IULNelson Nash's Clear PositionMutual Companies vs. Mutual Holding Companies: What’s the Difference?Mutual Holding Company StructurePractical Differences for PolicyholdersIs the interest on a life insurance loan variable, and can it change while there’s an outstanding loan?Fixed vs. Variable Interest RatesInterest Rate Caps and ProtectionHow Interest CompoundsPayment TimingWhy This Matters for Your Financial FutureBook A Strategy Call Where Do Life Insurance Companies Invest Their Money? One common question we hear is, “How do life insurance companies invest their money, i.e. the premiums they collect?” Understanding this can add peace of mind about how your policy will perform in the long run. Due to stringent regulations, life insurance companies are required to invest conservatively to ensure they can always meet their policyholder obligations. Here’s a breakdown of their primary investment allocations: Bonds: The Foundation of Stability Approximately 85% of a life insurance company’s assets are invested in bonds, both from U.S. Treasury and corporate issuers. Bonds provide a stable and predictable income stream, essential for meeting guaranteed cash value growth. This massive allocation isn't by accident. Life insurance companies favor high-grade corporate bonds and government securities because they offer reliable interest payments over fixed periods.  Unlike stocks, which can fluctuate wildly, bonds provide steady returns that allow insurance companies to make good on their promises to policyholders.  The bond portfolio typically includes a strategic mix of short-term, medium-term, and long-term securities. This laddering strategy ensures companies maintain liquidity for immediate policyholder needs while capturing higher yields on longer-term bonds. Mortgage-Backed Securities: Real Estate Without the Risk Many companies also invest in highly collateralized real estate...

In today’s blog post, we explore the insights Bruce and I shared while answering listener questions about building a self-sustaining financial system for yourself and your family through the power of whole life insurance, structured for infinite banking. This is more than insurance—it’s about giving you control and freedom. https://www.youtube.com/live/637N4E8L-Xg The concept of infinite banking allows you to use whole life insurance as your personal financing system. This isn’t about just saving or avoiding debt; it’s about creating a powerful, self-sustaining reservoir of capital that can grow and work for you. Think of it as a financial ecosystem where you have complete control. But it’s more than that. Infinite banking means creating the discipline and long-term mindset to build lasting wealth. Whether you want to understand lump-sum premium payments or how to structure your policy best, let’s jump in and answer your most pressing questions. Why Lump Sum Payments Aren’t Always the Best StartWhy Behavior is More Important Than Policy DesignShould You Choose Custom Whole Life or Ordinary Life Policies?Finding the Right Policy Structure and PartnerThe Benefits of Infinite Banking for Your Financial FutureBook A Strategy Call Why Lump Sum Payments Aren’t Always the Best Start One of the most common questions we receive is whether it’s better to pay a single large sum into a whole life insurance policy or fund it gradually over time. Many people think that a big upfront payment will jumpstart growth. However, a one-time lump sum can cause a policy to fail the Modified Endowment Contract (MEC) test, meaning you lose valuable tax advantages. Instead, a steady funding approach builds lasting value without losing the tax benefits. When you fund a policy gradually, it allows the policy to grow with a solid base and maintain a steady death benefit. The key is to structure the policy to be self-sustaining, with dividends and interest paying ongoing costs over time. With gradual funding, you’re setting the foundation for uninterrupted growth—one of the most powerful aspects of infinite banking. Why Behavior is More Important Than Policy Design The most well-designed policy won’t help you if you don’t have the right mindset and habits. A lot of people get caught up comparing policy designs, thinking the right combination of premium and paid-up additions (PUA) is all they need. But the reality? Your financial behavior matters more. Infinite banking only works if you’re disciplined. This means consistent funding, even when times are tough. It’s about committing to growth for the long term. Think of it as planting a forest: the trees don’t grow overnight, but over time, they create something truly sustainable. Your financial journey is similar—staying consistent, resisting the urge to draw down early, and trusting the growth process is what builds true wealth. Should You Choose Custom Whole Life or Ordinary Life Policies? With so many options out there, it’s easy to feel overwhelmed. For instance, should you choose a “paid-up” whole life policy that requires only short-term funding, or go with a traditional policy that you pay into your entire life? The short answer is that **the best policy depends on your goals and cash flow**. Paid-up policies (often designed to be fully paid in 10 or 20 years) allow you to stop funding at a certain point, but these policies tend to have higher premiums. If you’re able to keep paying into a policy over time, you can achieve incredible cash value growth without a massive initial outlay. And the longer you fund your policy, the more powerfully the compounding effect works in your favor. Think of it like rolling a snowball: the longer you roll, the bigger it gets. Infinite banking is a long-term game; funding as long as possible amplifies the rewards. Finding the Right Policy Structure and Partner When it comes to choosing a whole life insurance policy ...

Imagine this: you’ve heard that mastering Infinite Banking could be the key to financial freedom. It sounds like a perfect solution—investing in yourself, building wealth, all while being “your own banker.” But if you're wondering, "Is infinite banking a scheme? " The answer lies in how it's executed, not in the concept itself. Here’s the truth: not everyone succeeds with infinite banking. In fact, the people who thrive are often the ones who take an entirely different approach to it. They’re thinking long-term, taking responsibility, and treating this like a lifetime practice, not a quick fix. https://www.youtube.com/live/igurqrqZNdE The Infinite Banking Concept has gained popularity as a way to take control of your finances, but it’s not a one-size-fits-all solution. This strategy empowers you to create lasting wealth through a well-designed whole life insurance policy, but success requires discipline and a certain mindset. In this blog, we’ll break down what it really takes to succeed with infinite banking, addressing common misconceptions and why approaching it with an abundance mindset, a sense of responsibility, and long-term vision can make all the difference. What You'll LearnMastering Infinite Banking Starts with Abundance, Not ScarcityThe Scarcity Trap: Why Quick Fixes FailShifting to Abundance ThinkingEmbrace Responsibility: Becoming Your Own Banker Means OwnershipWhat "Becoming Your Own Banker" Really MeansThe Discipline Required for SuccessThe Long Game: Mastering Infinite Banking Means Thinking GenerationallyBe Wise with Policy Loans: It’s Not About Chasing Cash FlowThe Most Common Cash Flow MisconceptionStrategic vs. Irresponsible BorrowingPrerequisites for Success: Are You Ready for Infinite Banking?Financial Foundation RequirementsEmergency Fund EssentialsLong-Term Commitment CapabilityFinding the Right Balance: Structuring Policies for Stability and GrowthThe Problem with "Skinny Base" PoliciesDesigning for Your Entire Financial LifeThe Bottom Line: Infinite Banking Success Requires the Right ApproachBook A Strategy Call What You'll Learn By the end of this article, you'll understand exactly why some people thrive with Infinite Banking while others struggle: The mindset shift from scarcity to abundance – Why approaching Infinite Banking as a "quick fix" backfires and how successful practitioners think differently about long-term wealth building. What "becoming your own banker" actually means – The real responsibilities and discipline required to take control of your financial life through whole life insurance. The prerequisites for success – Whether you have the financial foundation and commitment needed before starting an Infinite Banking strategy. Policy design principles that matter – Why the balance between base premiums and paid-up additions determines your strategy's long-term effectiveness. Mastering Infinite Banking Starts with Abundance, Not Scarcity The Scarcity Trap: Why Quick Fixes Fail Infinite banking isn’t about chasing quick returns.  It is fundamentally about thinking from a place of abundance. Bruce and I (Rachel) have seen how scarcity thinking—focusing on short-term gains, instant gratification, or just trying to “fix” financial problems—often backfires. If you approach infinite banking as a “quick fix” for financial issues, you might not get the results you expect. Shifting to Abundance Thinking True success happens when you’re ready to shift your mindset, creating a long-term approach to managing your finances and understanding how to use cash flow wisely. Abundance thinking means viewing your whole life policy not as an expense, but as a financial asset that grows stronger over time. Embrace Responsibility: Becoming Your Own Banker Means Ownership What "Becoming Your Own Banker" Really Means Nelson Nash, who developed the Infinite Banking Concept, titled his book Becoming Your Own Banker because this strategy ...

Join us as we explore the critical importance of preserving your family history. During a recent conversation with Mark Anderson and Hadley Grow from Anderson Archival, we delved into the incredible impact of documenting and safeguarding your family’s legacy. Whether it’s through photos, letters, or oral histories, preserving these memories is essential for passing down not only family heritage but also the wisdom and values that shape who we are. https://www.youtube.com/live/3u8Lme_y5QY Imagine reading a book of your family's history, with handwritten letters and photos that span over a century. The book doesn’t just document names and dates; it tells stories of immigration, war, survival, and resilience. This was my (Bruce) experience when I read my family's history book, tracing our roots back to the 1800s in Germany. The moment I held that book, I felt an unbroken connection to my ancestors and the choices they made that led to where I am today. That experience showed me how essential it is to preserve family history—not just for the memories, but to ensure the lessons, values, and stories live on. Family history is about more than just keeping old records in a box somewhere. It’s about creating a living narrative—a legacy that will inform future generations about where they came from and guide them in their own financial and personal journeys. Today, we’re going to discuss how you can take control of this process and preserve the rich tapestry of your family's story for generations to come. The Power of Storytelling: Building Connections Through Family MemoriesDigital Archiving: Turning Physical Memories into Lasting LegaciesPassing Down Financial Wisdom: Avoiding Costly Mistakes by Learning from the PastCreating a Living Legacy: Merging the Past with Modern TechnologyWhy Preserving Your Family History MattersTake the First Step in Preserving Your Family LegacyBuilding a Legacy That Lasts The Power of Storytelling: Building Connections Through Family Memories Every family has stories that are worth preserving, from heroic tales of survival to simple anecdotes about daily life. These stories often contain valuable lessons that can help guide future generations. Mark Anderson shared a beautiful example of this during our podcast: his family's efforts during World War II to overcome financial hardship were deeply rooted in resourcefulness and resilience. Those stories influenced how Mark approaches challenges today. Hadley Grow added that preserving family history isn’t just about documenting what happened; it’s about keeping alive the values and experiences that shaped us. When you take time to gather stories from your family—whether it’s through interviews, letters, or even photos—you’re giving future generations a blueprint for navigating their own lives. Action Step: Start simple. Ask the elders in your family to share their stories. Record these conversations, whether through video or audio, and save them for future generations. This process can be as formal as a recorded interview or as casual as chatting at the dinner table. You’ll be amazed at the wisdom that emerges. Digital Archiving: Turning Physical Memories into Lasting Legacies One of the challenges many families face is deciding what to keep and how to store it. As Bruce Wehner pointed out in the podcast, his family’s 400-page, meticulously researched genealogy book is one of his most prized possessions. It traces their family history back to Germany in the 1800s and includes over 2,500 citations of research. Such a treasure could easily be lost over time without the proper preservation. This is where the power of digital archiving comes into play. Companies like Anderson Archival specialize in preserving these memories by digitizing everything from photographs and letters to more fragile documents. Mark and Hadley shared stories about families and organizations that had entire rooms filled with old photos, documents,

In the world of finance, there are plenty of “rules” and opinions. Some people tell you to put every dollar to work, chasing high returns, while others preach the importance of saving. https://www.youtube.com/live/bH7YaIbf_sY But today, we’re here to tell you why, beyond all of that, the most foundational rule is that cash is king. It’s a principle that, when followed correctly, can give you the upper hand in both good times and bad. Bruce and I often dive into financial topics that challenge mainstream advice, and today is no different. On this episode of The Money Advantage Podcast, we tackled the controversial yet vital subject of why cash is king. Sure, you’ve probably heard people say “cash flow is king,” but we’re going a step further—asserting that holding cash is critical for long-term financial success. And no, we’re not just talking about saving for a rainy day; we’re talking about seizing opportunities, navigating crises, and maintaining control over your financial destiny. Why Most People Miss the Importance of Cash Let’s start with why this concept is so misunderstood. The mainstream narrative in personal finance typically revolves around net worth and rate of return. People assume that as long as their investments are growing, they’re financially secure. But what does cash is king mean in this context? It means your financial safety and flexibility depend more on what you can access today than what’s tied up for tomorrow.  But let me ask you this: what good is a high net worth if you don’t have liquid cash to cover unexpected expenses or seize opportunities when they arise? We’ve seen it time and time again, both in our own lives and in the financial experiences of others: you could be a millionaire on paper, but if you don’t have cash readily available, you’re not really in control. And this shift, from focusing solely on net worth to understanding the value of cash flow, is what positions you for true financial independence. When you have incoming streams of cash that exceed your expenses, you hold the keys to freedom. Yet, even that isn’t enough. Cash flow is vital, but without cash on hand, you’re exposed when life throws you a curveball. Today, we want to take you one step further: it’s not just cash flow that matters. Having liquid, accessible cash is essential. And here’s why. The Chess Analogy: Why Cash is King In chess, the queen is the most versatile and powerful piece on the board. She can move in all directions and cover great distances. But it’s the king who’s the most important. If your king is taken out, the game is over—no matter how powerful your queen was. In financial terms, your “queen” is like your cash flow. It can make bold moves and help you grow your wealth, but if you lose sight of protecting your “king”—your cash reserves—you risk being taken out of the game altogether. Even if your income is strong, losing access to liquidity can cost you the match. Cash gives you staying power. It protects you from being taken out when life delivers the unexpected. Without it, you’re one emergency or opportunity away from losing your position entirely. Cash reserves allow you to weather storms, seize opportunities, and maintain your position on the financial board. Without it, you could lose everything, even if your cash flow seems strong. Why Cash is King in Today’s Economy So, why is cash so important today, in a world where everyone is chasing returns? Let’s go back to 2009, when interest rates were at rock-bottom levels following the mortgage crisis. People were disincentivized to hold cash because it wasn’t earning them a return. Instead, many relied on cheap loans, believing they could always access capital through the bank when needed. Fast forward to today, and we’re seeing a shift back to the traditional wisdom that cash is king. In a high-interest or post-crisis economy, the ability to hold and use cash can mean the difference betwe...