As you'll remember from the last two Building Wealth issues, speakers Dr. Robert Murphy, Nelson Nash and Carlos Lara explained what is driving our current economic turmoil and how the entire financial system is set up to create the boom and bust economic cycles of the past 40 years. Now, it's time to step back and take a look at how privatized banking systems are set up and how you can best use a Self-Empowered Banking System to build real wealth.
NPCG's Julie Ann Hepburn got the ball rolling by reminding participants that 40 years ago, if they were part of the 'green movement' - they were either a hippie, tree hugger or just plain crazy.Now, the 'green movement' is pretty mainstream, and if people are not doing something to mitigate their impact on the environment, they're pretty much considered to be crazy.
She asked participants to lay that blueprint over the financial education they had received so far during the day-long session.
"We're teaching you some ideas about banking and financing that the mainstream financial 'gurus' say don't work or that are crazy. But right now you are on the cutting edge of new financial thinking, and in 40 years you'll be considered mainstream - so you are already way ahead of the rest of the pack," explained Julie Ann.
With that as the background, Dr. Robert Murphy, then went on to set the stage with a detailed overview of how the current economic situation and the activities of the Federal Reserve and the commercial banking system is creating the inflation everyone is feeling.
"By creating your own banking system, you are shielded from the wild ups and downs of the financial marketplace," explained Murphy.
Now, the interesting thing about Dr. Murphy is that he is a NYU-trained economist, who was destined to become a professor, and instead, because of the bad economy, ended up discovering a whole new path for his research and career, as well as for his own long-term financial stability.
Like many of those in attendance, Dr. Murphy is relatively new to Self-Empowered Banking and had to get over his own doubt and lack of knowledge to discover the wisdom in creating his own banking system.
He did this by raising the objections that are often spouted by mainstream media pundits like Dave Ramsey and Suze Ormond, and then hunting down detailed information that discredited those objections. He realized that if you only know the surface explanation, you're missing the boat. Like the tip of the proverbial iceberg, there's more to Self-Empowered Banking than meets the eye.
The basis for any banking system is the ability to receive deposits from individuals or companies (the saver), hold that money somewhere (the bank/the banker) and then lend that money to others at attractive interest rates (the borrower).
In the traditional banking world, you are often only the saver and the borrower and the bank/banker is the one acting as the conduit for moving money from one to the other.
But, what if you could be the saver, borrower and banker?
That's what Self-Empowered Banking enables you to do - save money, borrow money and collect the interest that you would pay a traditional bank. The ability to do that puts you in the powerful position of being able to systematically eliminate debt and build wealth quickly.
Banking Is The Most Important Thing
Guest speaker Nelson Nash says that the most important thing you need to understand and be involved in every day is banking.
"Banking is when you can get the money you need to do the things that you think are a good deal," he said.By understanding how Self-Empowered Banking works, we can always be in a position to take advantage of the financial opportunities that often come our way.
For instance, Nelson cited an example of a colleague from whom he had purchased several hundred acres of land.The colleague needed cash and was willing to reduce the per acre cost to $50 and finance it at an attractive rate if Nelson would do the deal.Nelson agreed.
Eighteen months later, the colleague approached Nelson, and asked to be bought out, as he had underestimated his need for cash. He offered Nelson a 25% reduction in the per acre cost. Nelson quickly calculated the value, and within an hour had borrowed the cash from his Self-Empowered Banking System and paid his colleague off. He had paid only $38 an acre; years later, he sold that land for $500 an acre.
Without his Self-Empowered Banking System, he may have lost the deal. Imagine what he would have had to go through if he had wanted to borrow the money from a traditional bank?How many days would he have lost in that process, giving his colleague a chance to change his mind?
Clearly it pays to be the Saver, Banker and Borrower.
Recapture the Leakage
In the final hour of the day's presentation NPCG's Julie Ann Hepburn showed participants real life examples of how having a Self-Empowered Banking System can make a huge difference in people's lives.
"Once you become the saver, banker and borrower, you are then able stop the leakage on your money. From that point forward, it's amazing how quickly your funds grow," explained Julie Ann.
In one case she cited, a NPCG client, Dave* wanted to help his twin brother, Charles*, ease his monthly debt load. Because Dave had a Self-Empowered Banking System in place, he was able to lend Charles enough money, at a more attractive interest rate than he was paying to his creditors, to create an additional $1300 in cash flow, which gave Charles the wiggle room he needed to begin to buy down his debt.
As Charles paid off the loan he took from Dave, he re-borrowed the money, and continued to buy-out his debt from his outside creditors; he's now well on his way to being debt-free. In addition, Charles has almost paid off Dave. Because Charles has been able to create extra cash flow, he has now started his own Self-Empowered Banking System, which is helping him pay his debt off quicker.
Operating your own banking system means that you can not only make a difference in your own ability to build wealth for yourself; you can positively affect the lives of those about whom you care.
By the end of the day, participants had taken a thorough look inside how Self-Empowered Banking Systems are created and operated. They were able to see the benefits beyond just the obvious and recognize that the long-term ramifications of Self-Empowered Banking offer them a means through which they can build true wealth so that as Nelson puts it, "you can get all the money you need to do the things you think are a good deal."
"Someone will perform the banking function in your financial life whether you like it or not. You are already in the banking business because everything in your life is financed in one way or another. So, you have a choice, you can continue to let someone else control your money or you can take control through Self-Empowered Banking and reap the rewards it offers," said Julie Ann.
For more information on taking control of your money and setting up a Self-Empowered Banking System, please contact Julie Ann Hepburn at 312.957.9400 x 403 or via email.
*Names changed to protect client confidentiality.