There is some hype about becoming your own banker. Infinite banking allows you the opportunity to borrow from yourself.

You put your money into a life insurance policy every month for the rest of your life. As you build up the money, you can take loans from your fund as you need it.

So say you saved $15,000 and needed to take out a loan of $7,000 to buy a lightly used car. You would then be in debt to yourself, meaning that you would have to pay back the loan slowly with interest.

The ideas being, that as you pay back yourself, you’ll be adding interest to your payback, giving your fund more money than it started with when you first took out the loan. You are therefore becoming your own banker because you take money from yourself.

Charge an interest rate, and then slowly pay yourself back. This is a nominal idea, but not everyone trusts it right away.

The concept seems easy enough to do on your own doesn’t it? You could easily do something similar by taking responsibility into your own hands.

Instead of paying money to an insurance agency, you could pay money to your bank account. The more money you save, the more money you put away for a “life insurance fund” that you have access to at all times.

You can take loans from yourself without a middle man, set a monthly payment rate that will include interest, and then increase your savings account over time in the same way. Drop the middle man and it becomes easier, doesn’t it?

The answer is an unfortunate no. Although it is easy to believe that we are all disciplined enough to do this, but sad experience over a vast audience has taught most Americans that it is sometimes best to let someone else take over the reins.

Becoming your own banker starts to mean, “Let someone else take care of my saving account for me, and then I’ll ask them for permission to use my own money.” It is not always a perfect system, but it helps them put their money in a place that they cannot easily draw from without careful consideration.

Too often in today’s world, it is easy to electronically transfer money from one account to another, and then find an internet site to buy something that we think we need at the time. Self-control lacks in these situations and our savings go out the window with every ad we see on

Letting someone else take the reins will help us keep our hands off the money long enough to make a rational decision. Thus, becoming your own banker means that you learn self-control by placing a barrier between you and the money.

It is also comforting to know that should you pass, your family will have no trouble gaining access to the funds. They will be allocated to the right people, and only the right people.

There will be no fighting, swindling or oath breaking. It won’t destroy your family’s financial security.

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