How Changing the Flow of Money Changes Your Income – Episode 8

How Changing the Flow of Money Changes Your Income – Episode 8

How would you like to have a pay raise without putting in extra work? In this episode Ken talks about changing the flow of money which has a dramatic affect on your income. He also explains why cash flow is king and why it’s something you should constantly be looking for.

Ken Greene transitioned from being a Professional Engineer (P.E.) to the “Engineer of Finance.” His goal is to help other people create a “Piggy Bank On Steroids,” and earn better yields with less risk by investing Off Wall Street.

Links and Resources from this Episode

Show Notes

  • How powerful the banking process is – 1:39
  • When you have a Bankosaurus® you don’t need to deal with banks – 2:37
  • Ken’s experiment of getting equity out of his home – 3:40
  • Why cash flow is king – 6:51
  • Borrowing to create more cash flow – 11:15
  • Creating opportunities when you have savings – 14:57
  • By changing the flow of money Ken is able to give people a raise without changing their income – 16:30

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Becoming Your Own Bank – Episode 7

Becoming Your Own Bank – Episode 7

Once you have a Bankosaurus you can finance everything yourself without ever having to answer to a bank again. In this episode Ken and Tammi talk about how banks operate and why their practice of fractional banking is completely different than how whole life insurance companies work.

Ken Greene transitioned from being a Professional Engineer (P.E.) to the “Engineer of Finance.” His goal is to help other people create a “Piggy Bank On Steroids,” and earn better yields with less risk by investing Off Wall Street.

Links and Resources from this Episode

Show Notes

  • Why Ken is often the voice of contrarians – 1:53
  • What banks are doing with “the spread” – 4:33
  • How banks practice fractional banking and leverage additional money – 6:28
  • What happened to banks during the 2008 downturn – 9:35
  • How to protect yourself from a financial collapse – 12:25
  • Understanding dividend whole life insurance – 14:41
  • The struggles to go through to get a mortgage – 17:25
  • Playing the game to create more cash flow – 20:16
  • Once you have a Bankosaurus® you’ll never have to answer to anyone again – 24:06

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Investing: Your Favorite 4-letter Word

Investing: Your Favorite 4-letter Word

Investing | in-vest-ing (v), from the root word invest, which means:

  1. to keep oneself up at night with worry
  2. the topic of fancy, black-tie dinner parties where we impress each other with words no ones understands like disintermediation
  3. the vehicle that allows Wall Street bankers to thrive and stuff their pockets while people like us continue to … [see #1]

When I meet new people and tell them what I do, they usually take one of three sides when it comes to their own investing:

  • The I’ll start investing one day when I have money side

-OR-

  • The I’ve tried investing and I can’t stomach the rollercoaster ride when it comes to my hard earned money side.

-OR-

  • The I want something more, something different, something OFF Wall Street side

The first side folks are likely to never get off the sidelines and get in the game. They’d rather wait to invest their money “once they have it,” as if they already know they are going to lose money through investing and they want to make sure they have that money to lose. They don’t see investing as a way to make money. Fair enough.

The second side is so burned by Wall Street that their own jadedness won’t allow them to again try anything that resembles investing … maybe forever. If you’ve lost an obscene amount of money through stocks and bonds, I bet you can relate (I related hard when I was waking up from a nice fist-over-fist pummeling by the clenched hands of a brutal 2008. I’d pumped almost everything I had into investments and saved nothing. The real estate I owned became worthless. My retirement accounts crumbled).

The third side is ready for a different way to play the game.

The Norm (ahem, sucks, ahem)

Most of us take a path of going to school, getting a job, moving from hourly positions to salary positions and then spending all of our efforts advancing in our selected fields (but always thinking in terms of being an employee). This is the path most of us were taught from the time we mowed our first lawn and earned our first 50 cents. “Do good in school, kid. Get a good job, kid. You want to make a lot of money so you can vacation on beaches and wear nice watches don’t you?”

Well, kid, that’s not how it really works. It can–don’t get me wrong–but that’s a long, tiring, steep, avalanche-prone mountain to climb.

Enough Reading. Where Are All the Pictures in This Article?

Time for a picture. This is a great chart from one of the godfathers of personal finance, Robert Kiyosaki, and it’s called the “Cashflow Quadrant.”

When you boil it down, we all make money in 4 categories:

  1.    Employee (E). This could be you, with your high-paying job as the ultimate goal.
  2.    Self-Employed (S). Maybe this is you, if you are particularly brave and daring.
  3.    Business Owner (B). This may or may not be you (yet), but you’ve been dreaming.
  4.    Investor (I). This (along with #3) is the ultimate goal when it comes to becoming a money-making badass (in other words, when it comes to reaching Financial Freedom.)

The goal: Get to the bottom of the quadrant (the “I”), and get there fast. Don’t forever hang out in the same quadrant with the guys slinging sandwiches at SUBWAY (no judgement, that’s where I started). Moving on from “Employee” takes more courage than it does ice cream and dreams, I get it; I left a cushy government job four months before my first child was on the way–it took all I had to not throw up my guts from anxiety and panic (Stella Artois has a way of calming my nerves).

To get to the “I” you have to take the first step, which is breaking out of the traditional-savings-strategy jail cell and considering a new approach–an approach I’m thrilled to share with you in Part 2 of this article, found here.

Part II: Everyone, Meet “The Bankosaurus®”  

Part II: Everyone, Meet “The Bankosaurus®”  

The Bankosaurus® is our approach to smart financing for individuals and families–an approach that allows them to make wise decisions with their finances and be in a good place now and in the future. This is a game-changer.

OK, but what IS the Bankosaurus®?

“Banking is necessary, banks are not.” – Bill Gates.

In nerd-speak, the Bankosaurus® is a strategy using dividend-paying whole-life insurance as your own personal bank. But, no one ever bangs on my door shouting “I want to buy a dividend-paying whole-life insurance policy for  my personal finances!” So I’ll leave that language to the nerds.

And now, bullets:

The Bankosaurus® means …

  • … no more waiting until you retire to access and leverage your own money; you can access the money any time you want (*fists pumps*).
  • … opportunity for great growth rates from a savings vehicle (we’re talking around 4% IRR over your lifetime).
  • … that growth is income tax FREE (the best thing since tax-free sliced bread).
  • … a jumpstart on legacy planning, as you can leave behind money for your loved ones sans income tax (say it louder for the people in the back).
  • … your money will be protected from creditors, so it won’t get lost in a crazy loophole or grabbed by some ambulance chaser (on this one, rules do vary according to the state you’re in. I hope the state you live in is cool).

Bullets are Nice, but, Again, What IS the Bankosaurus®?

On paper, the Bankosaurus® is an approach (it’s not a piece of software, it’s not a physical piggybank, it’s not a pill that you take and hope for the best. It’s an approach that so perfectly differs us from typical financial advisors.

In this approach, our goal is to create your own bank, your Bankosaurus®. Why? Because banks make money off of you, and if you had your own bank, you’d be making money off you.

Stick with me.

Banks make money off of what’s called “the spread.” To understand the spread, you should see it in action.

Let’s say you have $100,000 in a savings account at your local bank. This savings account offers you 0.10% annual return on your money (at the end of the year, the bank will have paid you $100). What does the bank do with your money. It lends your money out a higher interest rate of 4.1%, let’s say, interest-only payments for 60 months (the time doesn’t matter, this is just an example). After 12 months, your neighbor has paid the bank $4,100. The bank used your money, paid you $100 and netted $4,000. That’s the spread.

I’m telling you that you can be your own bank and take advantage of the spread. Instead of making $100, what if you cut out your bank and lent the money directly to your neighbor? Wouldn’t your rather get $4,000 instead of $100? It’s your money. Or, let’s say it was you that wanted that Tesla. Instead of borrowing money from the bank, borrow it from yourself. If your neighbor was willing to pay the bank 4.1% interest, wouldn’t you be willing to do the same for yourself? If you did, you’d benefit from the spread. Nice.

Yes, this is a general example and there are some details to cover, but this is the gist (I know it’s unlikely most people have $100,000 in cash to sock away in a savings account … and Tesla purchases soon won’t come with the same tax advantages they used to). But, I hope you understand the example. With this Bankosaurus® approach, we help you make money like the banks do. With some changes in how you approach your own money, you can live off your own savings, and stop giving it all to the banks or (even worse) a Me-Smart-Me-Want-Your-Money-Type financial advisor. What we teach is transparent, which is probably why it’s not taught by 99% of financial advisors … and it works.

 

I Preach AND I Practice: My Family Personally Uses the Bankosaurus® Approach

Back in 2009, I lost almost everything. When I went from a stellar credit score to practically zero, I decided to take action and created (and executed) the plan I now call “Bankosaurus®.” I didn’t have to go all Oscar’s drama and beg the bank for a loan. When I needed money for my LASIK surgery, I accessed my own money, made interest, and even saved 20% in the process. I used it to fund and launch my company, Greene; my wife and I used it to buy our house.

For over six years now, I have taught my clients how to use it to eliminate huge amounts of debt and make “bank” (by being their own bank).

Let’s talk, because if you’re a human and if you use money, the Bankosaurus™ could be perfect for you.  

Schedule a call to learn more by clicking HERE.

 

Understanding Opportunity Cost – Episode 6

Understanding Opportunity Cost – Episode 6

Once you understand the opportunity cost of money you will clearly see how banks are profitable and why it’s necessary to become your own bank through the Bankosaurus®. In this episode Ken and Tammi also talk about the Rule of 72, avoiding income taxes and creating financial freedom.

Ken Greene transitioned from being a Professional Engineer (P.E.) to the “Engineer of Finance.” His goal is to help other people create a “Piggy Bank On Steroids,” and earn better yields with less risk by investing Off Wall Street.

Links and Resources from this Episode

Show Notes

  • The Bankosaurus® opportunity cost – 1:55
  • Why the financial industry is designed to take your money, not make you money – 3:38
  • What happens during the first 7 years of a mortgage – 5:09
  • Understanding the Rule of 72 – 7:07
  • What most radio shows and money people never talk about – 9:21
  • Best practices for paying yourself back – 13:51
  • Borrowing from yourself vs borrowing from the bank – 18:08
  • Why Ken wants people to have financial freedom – 21:11
  • How income tax relates to the Bankosaurus® – 21:55

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