You Finance Everything You Buy

Every purchase involves a decision about how to use your capital.

When you borrow, you typically pay interest to a lender. When you pay cash, you give up the opportunity to use that capital somewhere else. The costs are different, but both choices involve your capital—and most people think about only one side of the equation.

That observation is at the heart of the Infinite Banking Concept. If you’re going to make purchases throughout your lifetime, the question becomes: Can you build a system that allows your capital to remain productive while still giving you access to it when you need it?

A properly structured whole life insurance policy can be used as part of such a system. Cash value grows according to the policy’s guarantees, while policy loans can provide access to capital without requiring you to withdraw the cash value from the policy. The policy continues according to its terms while you use the borrowed funds elsewhere.

The purchase itself hasn’t changed. What changes is the way you think about the capital behind the purchase—and whether you can create a system that allows that capital to continue working over time.

The question isn’t simply, “Should I borrow or pay cash?” It may be worth asking, “How can I become more intentional about the capital I use to finance my life?”

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