Luckily a solution has been revealed and thoroughly tested that can free us from the endless cycle of debt and loss that was described on The Problem page. The solution is described delightfully in Becoming Your Own Banker by R. Nelson Nash.
By examining the characteristics of the ways we currently purchase big-ticket items, Nelson saw that we can change the way we think about our money, and in the process, create our own banking system.
From the method of saving to pay cash, we take the time to build a pool of money — a reserve, stash or bank — if you will. After capitalizing that reserve, we can tap into it when needed to pay cash for the item we want to purchase, and then begin to pay our reserve back with interest. That's the element of the financing method, that in the end benefits us, because we're paying it to ourselves, rather than to an outside source.
Now you are the one receiving that money instead of the company you would have borrowed from, doing things the old way. Now it is your net worth growing, instead of theirs, and you aren't paying out any more than you did when using a third party. The only difference is the direction your money is flowing.
One of the biggest rewards of handling money through your own pool of cash is the feeling of ownership and control.
The fact that you will eventually be able to finance everything in your life, building your net worth at the same time, is well worth the time it will take to build it. This is not a get-rich-quick scheme, but rather a process that enables you to manage your cash flow throughout the rest of your life, allowing you to meet every contingency with equanimity and calm.
Let Financial Fundamentals provide the keys to building your own bank. There is more than one place for your money to reside while accumulating for this purpose, but there is one that is much better than any other. And that is the one described by Mr. Nash in his book, dividend-paying mutually-owned whole life insurance. More important, though, is how your system is set up and how you use it. It's in this area where working with a qualified professional will help you avoid continuing to transfer your money away. We can also help you discover the most efficient and effective place to begin by doing a thorough analysis of your current situation.
"While we consider when to begin, it becomes too late." –Latin proverb
Don't let it become too late for you!
Nelson Nash Memorial issue of BankNotes
The New Economy
Why Banking Is No Ordinary Industry by Ryan Griggs
"IBC and Constant Compounding"
by Robert P. Murphy
• What Is Prosperity Economics?
• Review of the new movie "The Big Short"
• Kick-Start the Savings Habit
• The Federal Reserve Has Destroyed the Meaning of
by Eric Englund
• Card Tricks & Sleight of Hand from Lara-Murphy Report
• Bank (In)Security: 3 Reasons Banks Aren't as Safe as You Think
• A Higher Law
Excerpt from The Triumph of Liberty, by Jim Powell