What Are You Working For
There is a powerful financial principle to achieve financial freedom that anyone can do, using the money you already make. However do to various arguments that have been made about this principle, many get turned off and never see it for what it really is.
Before we discuss this powerful financial principle that can start you down the path to financial independence, lets engage the question.
What are you working for?
I hope you were not expecting me to answer this question for you.
In fact you should have been able to narrow your list to five items, whether you are single or with family.
The fascinating thing about that question is most people answered, "I got to pay the bills," "The bills won't pay themselves," or some variation of that answer.
Now before you dismiss the validity of the answer, by stating, "They did not know what your were really asking."
Paying your bills is a valid answer. So, my next question is.
What if all of your bills are paid every month?
What are you working for?
Here is where it gets tricky and the answers start to vary, but still the same outcome. The majority of the people asked, said they would spend the extra money on new cell phones, new shoes or clothes, a new tv, a new video game, basically they would spend the money.
However, this question is not about what you would do with the extra money.
The reason for the question, is to make you stop for a minute and ponder. Why do I get up every morning and go to a job, I do not like anymore? Why do I put up with a boss that only cares about how much he or she can get out of me, for the least amount of money the company is willing to pay? Except for my yearly vacation, I do the same thing over and over everyday. Is this what the rest of my life is going to be like?
In this article we are going to talk about another answer to; What are you working for? This answer could help you retire debt free which includes your house being paid for and you will be able to say I have obtained financial freedom.
The best thing about this answer is, anyone can do it.
Do you ever make the following statements.
I am not a robot I am a human of flesh and blood with real feelings, with real desires, passions and dreams. I want so much more out of this life.
Maybe you are content with your current life, if so than you are a robot obeying the same preprogrammed routines automatically, you do not even have to think, just do.
Some of you are saying hey wait a minute, I enjoy my job, and I am doing exactly what I want to do. I am completely happy and content with my current circumstances.
That still do not negate the question. What are you working for?
I had someone say to me, "Your site is all about working for yourself, and starting your own business. What if I do not want to have my own business? It is too much trouble."
That still does not negate the question. What are you working for?
The question is asked to get you to focus on tomorrow, next week, next month, next year and eventually the years will take you to a time when you can no longer work. For some, sooner than later based on your current age or unexpected events that could shorten our work life.
What if the answer is, I am working to buy back my freedom or if you are just getting started, I am working to secure my freedom.
"Time moves in one direction."
The work force is created of wage earners, trading time for money. So, at some point the money earned should buy back some of that time.
For most of the working public, if you work for one week you get 2 days off, two days of parole, 2 days of freedom. If you work one year you get one year of vacation. One week of freedom, the time you gave, was it worth it.
I just read a story about a gentleman who had the same life you and I, have or had. He suffered through the losses and gains that life has to offer, until he finally had enough of the losses. Theses losses also included the unexpected loss of his job more than twice. He spent twenty years creating a system that allowed him to retire at the age of 50. He says, in his book he no longer has to work for money and now he has enough assets that work for him.
The old cliche stop working for money and have money work for you.
Will that be your outcome, is that what your are working for?
By now you are asking yourself. Why then should I waste my time reading this article?
We consistently go to sleep, got to work, pay the bills, and do it all over again day after day.
What if we put consistency to work to create a new path by using the current daily routine, that will allow us freedom to decide what tomorrow will be like, instead of waiting for whatever may come.
If you have read this far, then you are looking for more than what your current status has to offer.
Thank you for being patient with me, here is a method that can help you with your pursuit of being more than just satisfied with the rudimentary day to day drudgery.
Continue Reading Below, get started today, the advice is free as usual.
Yes, I have used this method and have been able to survive car accidents, medical setbacks, loss of pay or cut in pay because of having to change job titles do to personal injury. Most recently I was able to quit my job, yes the same job that cut my pay because of injury. This injury limited my mobility making it impossible to continue in the position I had before the surgery.
The beauty of it all is that I am able to walk away literally and figuratively from my job and still pay my bills while I pursue a writing career.
No, this method is not saving for an emergency fund, although having an emergency fund is definitely something you want to have.
You have no doubt heard about being your own banker.
This is an awesome financial tool, as long as you are disciplined and exercise self control. Here is the motivating factor if you saw first hand that you were using a technique that made a big difference in the out working of your goal. Why would you not continue to use that technique?
In fact, the previous paragraph describes the key to success in every personal achievement in life, relationships, family, work, play, sports, business, etc…
You are assured success in any goal you set, if you put forth consistent effort, self control, discipline while doing something you know works.
So can becoming your own banker help you to become financially successful.
If you research this, you will find many ways to describe this unique financial tool, many of the methods used tote the idea of having a whole life insurance policy to fund their bank and that turns the majority of the people off entirely to using this technique to build a solid financial future.
If you dig further into this age old financial bomb shell, many people and companies have successfully deployed this method to grow their wealth. However ordinary people shy away from it without even thinking about the real gem of such a financial weapon to help you achieve financial freedom.
Though the whole life insurance policy is the trigger for many conversations and arguments, what most fail to see is, what is accomplished by using the becoming your own bank principle.
You do not have to use a whole life insurance policy to build and fund your own bank.
Another problem most people have had with becoming their own banker is being able to fund their bank.
Full Disclosure: What I am about to tell you, please do not hold it against me.
I am a licensed insurance agent and have been trained in the art of life, health and annuity persuasion.
No, I am not selling you life insurance.
If you have had a chance to look around this site. It should be obvious what I do sell.
Ever Caught a Rabbit in a Cornfield
Ever Tangled With Lightning
We Are gods
These are my books, if you want to buy these books they are available in eBook and paperback from your usual distributors.
And you can look forward to my next Novel Peace and Security.
Ok, back to becoming your own banker, though I am licensed and qualified to talk about this subject. I will still suggest that you consult your attorney or CPA before setting up your own bank.
Though I am partial to the life insurance method of becoming your own banker I have used other methods that were readily available.
Just in case you do not know what the definition is for becoming your own banker.
Becoming your own banker is the process of using funds you already have to fund things like buying a car, electronic devices, boats and other wants. More importantly you can use the principle to finance your retirement, pay off your house, or finance a business.
You use your own bank instead of getting a loan from a traditional bank.
What if you could have all of the money that you paid out in interest over the years, giving back to you.
If the bank said, “We thank you Mr. Newman for borrowing from us to buy all those cars. Here is all the interest that we earned from you, it is yours.” Better than that, what if they gave you the interest that was earned from the interest you were charged. And the credit card companies, how about all those credit card purchases and the interest that was charged. Yes, it could get complicated, but man that would be quite a cash windfall.
Sing it with me, we’re in the money.
You can wake up now, because that will never happen, but that is the principle behind being your own bank.
How it works; you have $5000.00 laying around, you decide to buy that new curved tv, 1080p hd, with 4k technology, and 3D capability and built in surround sound. Instead of using the credit card with a 9% interest rate. You use the cash on hand however you vow to pay yourself back with 5% interest over a 24 month period. Your payment would be $219 per month you will have paid yourself back $265 in interest.
We cannot stop there though let’s say this is a savings account, and you put $100 in that account monthly. You will have paid into this account an additional $2400.
We cannot stop there, this savings account pays 1% interest monthly. Remember, you wiped out your savings. So, you are starting at $0.00, but you have the latest and coolest tv. Starting with the next month you pay yourself back $219.00 plus $100.00. If you consistently pay $319.00 for the next 24 months, you will have paid back the first year $4,167.80 and by the end of the second year $8,055.26. That is the power of compounding interest and becoming your own bank combined.
Let’s put it all together now; you will have paid yourself interest of $265.00 plus savings of $2400 plus interest from your savings account $399.26, this will equal $3,064.26.
Oh and let’s not forget you will have your $5000.00 back giving you a total of 8,064.26 in your savings. That is the awesome part or upside, the down side, it has been 2 years since you bought your tv, it is now obsolete, time for a new tv.
Just imagine how much you would have if you had never spent the $5000.00 on the tv. And you still paid $319.00 every month to the savings. You would be sitting on $8,895.82 for year 1 and $12830.78 at the end of year 2. Remember this is based on you receiving 1% interest monthly. Of course you could make higher interest using other vehicles besides a savings account.
The point is your bank is on it’s way to being completely funded and ready for any need or loan you see fit. This is the true spirit of becoming your own banker. You will make major purchase over the years. You will pay interest to someone for those major purchases. Why not pay yourself?
Above we used a 2 year example, but if you used the power of being your own banker for the next 10, 20, 30 years just imagine the potential. You do not have to imagine, start your bank today.
Eventually you could buy a car this way and next a house this way and after that your own business this way and the ultimate goal you could pay for your retirement with your very own bank. The really awesome benefit is you are truly debt free.
You are paying the interest to someone, Credit Cards, Car Loans, Mortgage, Personal Loans, etc…
If you wish to get more information on this, the information it is readily available in various formats.
What is the question? What are you working for?
So, like I said most individuals have a hard time finding the funds to fund their bank. That is what we will address first (funding your bank).
Normally in order to have enough funds to start this process, would require you to save up some money for your bank. Hence the reason most people never get started.
The other reason no one ever get started with their own bank is the argument or conversation as to what method or technique to use. We get so confused and caught up with the why savings accounts are not a good idea, right to why whole life insurance policies are not a good idea.
Eventually we just do not do anything, and as time goes by so does the opportunity to benefit from this awesome tool and principle.
However the main point is how great the idea or concept of becoming your own banker is.
These are the four best methods or vehicles to use to become your own banker.
Using a savings account
Using a 401k account
Using a Certificate of Deposit account
Whole Life Insurance Policy with special riders and entitlements
Each has its advantages and disadvantages which include tax breaks, higher interest rates or lack there of, and slow to rapid rate of growth.
You should be familiar with these different methods already, if not please research them at your leisure.
There are many arguments as to which option above you should use to house your bank, I will not go into the different reasons for the arguments at this time, the real purpose of this article is to get you interested in establishing your own bank. There is no law that says you can only have one bank, if you really want to branch out (pun intended). You can use multiple techniques, like using a savings account at first and as it grows use it to fund a Whole Life Insurance Policy, this will really give you more bank for the buck.
So, where does the money come from to fund these vehicles to get your bank started.
Consider your next raise, bonus, any cash windfall that comes your way, tax return, start your own business, or get a part time job. If you have been paying into a 401k plan or you have a pension plan and you are about to start receiving payments these will work too. If you get laid off from work or are offered an early retirement with a buyout policy, which usually comes in the form of a severance package, these too could fund your bank.
If you do not have any of the available funding options as spoken of in the previous paragraph, than you need to beg, borrow, and stop spending. The longer you wait to start your own bank, the longer you will continue working just to pay the bills.
What are you working for?
The four basic methods or vehicles to operate your own bank.
I know I said I would not go into detail about the for methods or vehicles that you can use to conduct you're banking transactions, however that would do you a great disservice.
If you would like to ponder the differences yourself, this will not hurt my feelings. If you on the other hand would like to avail yourself of that all important information here, I will oblige you.
We will look at these from the loss aspect, which normally carries the threat of:
The losses occurred in the Stock Market.
The losses occurred because of interest or low interest rates.
The losses occurred because of taxes, the worst of the three.
Let’s start with savings accounts, they are the least likely to be used for this financial apparatus.
The reasons are or should be apparent.
The money in your savings account is not in the stock market.
Low interest rates on the money in the savings account.
The interest earned is taxable.
Using a 401k sounds really good and easy to use, and this is true.
Your 401k is subject to the stock market and its ups and downs.
No interest is earned on the money, however the company you work for matches your money up to a certain percentage.
Tax is paid at retirement unless you close the 401k early, then you could pay upwards of 30 to 35 percent on the money you withdraw, to the federal government as well as the state.
Certificate of deposit is a great idea, except the money is not readily available. Based on the terms of the agreement with the bank. If you choose a 1 year CD then you will wait 1 year to use the money. If you choose a 5 year CD then you will wait 5 years.
The banking institution determines what stock funds are used if any. They likely will lend the money out for a higher interest rate. However in most cases there is no loss to you.
The money is earning a higher interest rate than a savings account, but could earn a higher interest rate in other interest earning endeavors.
The interest earned is taxable.
Whole Life Insurance Policy is also a great tool for becoming your own banker. If you do not have a large sum to start though you will have to wait for the cash value to build up.
The insurance company chooses the investment vehicles like bonds, mortgages, or other investment avenues.
You earn dividends instead of interest on the cash value.
The dividends paid are not taxable, and the money from the cash value is not taxable.
*There are other pros and cons to each method, and you really should educate yourself on each of the above vehicles. You should also seek out advice from professionals, at least until you get the hang of being your own banker.
The pros and cons should not hold you back from becoming your own banker.
If I were you, I would not wait to start your own bank, this is an awesome financial tool, that can solve many of your financials woe’s and build quite a future for you and your family.
If you do not take advantage of this concept, please teach it to your children, you will save them a lot of money in lost interest income. And, let’s not forget the real benefit of being able to buy back yours and their freedom.