



When it comes to managing our own finance most of the people find it confusing and difficult to protect their hard earned money and reap all the benefit it is capable of providing. Most of us believe that keeping all the money in banks till we need it is the best bet as it is safe there and earns you some interest as well. Though it has been so practiced for hundreds of years but it may not be the best way of utilising your financial capabilities. Even after having good savings in the bank we often have to take loan to buy most of the major things like automobiles, house, appliances etc in our lifetime.

For past some decades the concept of âbecoming your own bankâ is getting popular among small investors who are getting aware of their financial strength. The major cause of this concept gaining popularity is the high risk that people have taken, and suffered in the past, by investing in mutual funds, stocks and such markets. Many people have lost a lot of money in these highly fluctuating and risky markets of investment. People are confused and scared, and are looking for an answer to their dilemma that the strategies which used to work before are not working now. The concept of self banking is doing just thatâ¦..giving answers to all these questions.

Banking in simple terms can be defined as the capitalization and creation of a pool of money and using that money to finance a borrower's needs for an interest to create profit to keep and grow the pool of money. To prosper banking has four basic requirements which can be named as liquidity, security, efficiency and tax friendly. The infinite banking concept uses the most developed and complete life insurance strategy to create a highly competitive growth, tax advantages, and absolute access to your money.

Under the concept the life insurance policy is structured so to create large amounts of cash value. Within the first five years, the cash value of the policy is almost equal to that of the amount that has been contributed as premiums. This way the policy has sufficient growth to cover the complete cost of insurance. In this way you create unique, prosperous banking system to finance your purchases and secure your future.

When you be your own banker you get all the benefits of banking, and that too using your own whole life insurance policy to finance your needs. Borrowing from bank and paying them back over time is the most common way of financing our purchases of car or a house, and it costs you a lot of money to pay for interest only. While if you plan ahead and fund your whole life insurance, you can borrow the money from your policy and schedule a repayment plan to pay yourself back with interest. This not only helps you get the required finance but n addition you are able to earn the interest in the transaction that the bank would normally earn.

This is precisely what infinite banking means. Being your own banker where you are both, the borrower and the lender, is more profitable to you then either paying saved cash or by borrowing from the bank.