13 Oct Passive Income through Infinite Banking
Every one of us hopes and dreams of being financially free. That is why we hustle and grind every day to reach that goal. Some invest their money in mutual funds with the help of financial advisors. Some want to play safe, placing it in the bank in hopes of yielding even a little interest. These are good ways to earn from what you have saved. But none of these can compare to what you can make when you use the strategy of building a passive income through infinite banking and eventually be financially free.
Sure there are lots of ways for you to reach a state of financial freedom. I don’t want to dwell on the pros and cons of all of those. I want to talk about infinite banking and how it can help us not only thicken our wallets but have that sense of assurance that the money we have is, sure enough, it can support us, our children, and theirs.
To simplify infinite banking, it is the act of being your own bank. You’re the one managing your funds through a series of back and forth loops between the lender and your investments. In this case, the lender is your insurance policy.
The strategy is you borrow an amount from your whole life insurance. It has a component wherein you can get funds and use that funds to double-dip through investments that provide passive income. It would be best to get the lowest cost possible to keep your money growing with the insurance provider. Then pay them with your earnings and keep the difference. And then make another loop of borrowing money from the policy to reinvest into another.
You can have money over the insurance earning interest and get a credit line against it to fund passive income deals. You are doubling your money without betting on asset appreciation, worrying about the stocks, fees and tax from your earnings, and all that stuff. The good thing is its insured money because, in some states, it is 100% protected from losses, lawsuits, and creditors.
Passive income is great. You can get to work not because you have to but because you want to. Businesses may shut down because of unforeseen circumstances like covid, but passive income still thrives in the background. Relying 100% on active income may jeopardize not only your business but also your savings in case problems may arise in the future. Passive income is money working for you, not you working for money.
How to Start Building Passive Income?
The first is to get lean, cutting down on everything to what is unnecessary and leaving only the essential. Bills, subscriptions, office space, overlapping tasks, and other non-essentials are some of the things you need to consider when getting lean.
The second is to get liquid. Make sure you have cash on hand. The future is uncertain, so it’s good to have some money. And more money to play with and weather the storm, just in case.
So go ahead, get lean, get liquid, and get out and utilize infinite banking in investing in passive cash flow investments. You don’t want to be retired and still worry about money instead of worrying about the next best thing to do to enjoy retirement.