About Winning


Today, we are bombarded by messages wanting us to get into new things to help us succeed financially. Many people seem to have a system they have developed to bring you wealth you couldn't imagine. Tell me, have you heard of these concepts before and/or been encouraged to participate?


Velocity banking

Infinite banking


Looking into each of these, they seem to me to be strategies to "win more" after you have already set yourself up for financial success. Once you have built your Money House of committing to living on less than you make, budgeting for your spending, and building your emergency fund, then perhaps these are strategies you can look into using.


However, neither velocity nor infinite banking work very well if you don't already have good control of your spending. They require being able to allocate money to other things easily. For instance, if you aren't living on less than you make, velocity banking will likely get you into more debt trouble. The concept, broadly, involves using a home equity line of credit to pay for everything you need, then having your income deposited directly into the credit line. If your spending exceeds your income, this won't ever result in a paid of credit line, just one that grows!


Similarly, infinite banking as a concept involves you borrowing money against a whole life insurance policy to fund your lifestyle and investments. Proponents encourage you to be an "honest banker" and pay yourself back. However, if you aren't able to pay yourself back because all of your income is spent elsewhere, then you are basically sabotaging your policy and the concept.


If you have already set yourself up with a strong Money House and want to investigate these concepts, that is up to you. You are able to do as you please. However, if you haven't built that Money House, or If you aren't able to breathe easily from one month into the next, I encourage you to focus on that first.


After all, winning more is only possible after you are already winning.