Don’t frown when you read the title. ‘be your own banker’ doesn’t mean you must keep your money to yourself, under your pillow. Instead, you must think like a traditional bank, how you can make your money earn more interests to maximize your wealth!
To ‘be your own banker’ means to recapture the principal, interest, and finance charges that you would otherwise pay to traditional banks and lending institutions. The concept also well known as Infinite Banking.
The Infinite Banking Concept created by R. Nelson Nash in the early 1980's. Out of personal necessity, applied experience, and brilliant imagination, Nash observed a profound truth in all of our financial lives:
We focus on a high rate of return for our long-term investments, but we fail to appreciate the much higher rate of interest we're paying on our daily expenses.
The Infinite Banking Concept basically allows you to capitalize yourself, lend money to yourself, and return interest to yourself tax-free. As you avoid the money-sucking reality of banks, lending institutions, and credit card companies, you can build true wealth in your own, self-contained, perpetual, funding mechanism.
So, it will be a right thing if we say that Infinite Banking is a Powerful Financial Solution!