Pay Yourself First To Be Your Own Bank
With any successful system, there should be guidelines in place to make it run like a well oiled machine. And The Money Multiplier Method is no different. So let’s break down the first rule in being your own bank:
Pay Yourself First
You’ve heard it. But do you do it? Probably not. You pay the mortgage, the company that finances your car, the student loan repayment departments, and your local grocer first.
By now, you should be understanding that banking is the most powerful business tool in the world. He who controls the flow of capital is king. So pay yourself first by putting your capital in the bank. YOUR bank.
Most likely, you’ve got all of your money sitting in the bank right now, just like everyone else. But it’s a conventional bank that you don’t own or you don’t have control over. If you make withdrawals from that bank, you spend it and it’s gone–no guarantees and no growth. (Learn more about loans vs. withdrawals here.)
Qualified plans and other money-making opportunities have the same issues–control, guarantees, and riskiness.
Once you have a properly structured policy in your hands, you now own a bank. So deposit funds in there! There is growth, there are guarantees, and you have full control. If this is the only place that has all three, deposit all you can!
In the end, income and premium deposits should match
Eventually, you’ll build a banking system so strong that you should have every dollar of income from your one or many other sources going inside the bank. But you should own that bank.
Getting 100% of your income in the bank may take the average person over 10 years so don’t worry about that right now, but keep working toward being in complete control of your own financial destiny and building wealth through every transaction.