The difference between interest rates and compound interest is often misunderstood. When borrowing money at 6% and earning 4% in a savings account, it may seem like a loss, but the reality is different. Compound interest allows the initial amount to grow at an increasing rate, while simple interest keeps the growth constant. As a result, despite paying 6% and earning 4%, the increasing nature of compound interest can eventually lead to earning more than the interest paid, especially with a declining balance.
Robert Leonard and Chris Naugle talks through the concept of “infinite banking” in-depth.
Chris is an accomplished entrepreneur, real estate investor, and author. He is the CEO and Founder of FlipOut Academy and The Money School, while having also participated in an HGTV show “Risky Builders” with his wife Lorissa.
IN THIS EPISODE YOU’LL LEARN:
00:00 - Intro
07:01 - What is infinite banking?
07:01 - Why it may, or may not, be "too good to be true."
14:47 - How to use infinite banking to get out of debt.
14:47 - Who uses infinite banking successfully right now?
22:39 - How to use infinite banking to build wealth.
And much, much more!
BOOKS AND RESOURCES
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