Becoming Your Own Banker Unlock the Infinite Banking Concept By R. Nelson Nash

Becoming Your Own Banker Unlock the Infinite Banking Concept By R. Nelson Nash

Part 1: Becoming Your Own Banker®
Someone made the comment that “If some authoritative power distributed
all the money in the world equally among all the people in the world,
within ten years time 97% of all the money would be under the control of 3%
of the people.” I suppose that there is no way ever to measure the validity of
such a statement, but I have the feeling that most people would agree that it is
probably close to the truth. Even if the proportions were somewhat
moderated—say 75% of the money would be under the control of 25% of the
people—why do you think that this phenomenon happens?
Perhaps some of the answer lies in the fact that most folks know next to
nothing about the process of banking and its importance to their lives and
their well being. Banking is the most important business in the world!
Without it, all business comes to a screeching halt. Whenever a business
transaction takes place, money must flow from one party to another in a
relatively short time or, otherwise, nothing takes place. That flow of money
must come from a supply source, a reservoir. That is the essence of what the
banking business is all about; someone or some organization has control of a
pool of money that can (and must) flow, at a cost, to meet some need.
There is only one pool of money in the world. The fact that this pool is
managed by any number of institutions: banks, insurance companies,
corporations, and individuals in various countries with various currency
denominations is incidental. To argue otherwise would be the equivalent of
someone looking at the globe and observing that the Amazon River in South
America flows into the Atlantic Ocean and commenting that “this has nothing
to do with the Indian Ocean on the other side of the globe.” Nonsense! It is
all part of a system. Observe that about 75% of the Earth’s surface is covered
by water. The sun heats it up and some of it evaporates into the atmosphere
causing wind currents. The currents take the water vapor around the earth and
it precipitates out in the form of rain, sleet and snow—and somewhere along
the way some of it flows through you and me. Without it we die! That makes
it of vital importance. Pray tell, where does it end up? Right! Back in the
oceans!
The banking business is somewhat like that. Money flows from the pool
through our hands to meet our needs—but somewhere in the process it all
ends up back into the banking system. It is all a matter of “how much of the
banking function do you control as it relates to your needs.” This book is all
about how to create your own banking system so that you can control 100%
of your needs. Becoming your own banker! Give it your close attention and it
can make a radical improvement in your financial future.
“For I know the plans I have for you” declares the LORD. “plans to prosper you and not to harm you,
plans to give you hope and a future.”
—JEREMIAH 29:11
Chapter 1: How the Infinite Banking
Concept
® Got Started
First, a bit about my background. I was educated as a forester, graduating
from the University of Georgia in 1952. A large portion of the root
thought of this concept is coming from the study of forest finance—the fact
that you are dealing with compound interest over a long period of time with
no taxation on the build-up. The reverse fact is that you must make an
investment and you won’t see any result for that same long period! In the
forestry world you must think many years into the future. I worked as a
forestry consultant for about 10 years.
Some of it is coming from the life insurance business. I made a good
living in life insurance sales for over 30 years. Knowing how dividendpaying

life insurance works is an essential ingredient to it all. Most people
have a minimal understanding of the subject, including the home office
personnel at life insurance companies! That is strange, but very true.
Lastly, it was strongly influenced by my experience in the real estate
business. Timber is a form of real estate as well as the land on which it
grows, so I have been around real estate for all my working life and I
developed a strong interest in the subject, studying many books on it. If you
read these books, the central message is not about real estate at all—it is
about the magic of leverage! Essentially, they all say, “Buy some real estate,
borrow the money to pay for it, (because you are always dealing with
borrowed money—you either borrow money and pay interest, or you use

Becoming Your Own Banker Unlock the Infinite Banking Concept By R. Nelson Nash