A Simple Illustration of the Infinite Banking Concept

December 28, 2018

The Infinite Banking Concept as Explained by Nature

My son, Josh, and I were out for a walk with our yellow lab, Skye, when he asked me to explain what I do for a living. Having my eleven-year-old son take an interest in what I do for a living was a special moment for me, so I jumped at the chance to explain it to him.

At the time, the North Dakota winter had finally begun to give way to spring and we were surrounded by melting snow. Rather than just tell him what I do, I decided to take advantage of our surroundings to teach him how I help people understand how to use money.

I asked Josh to look at the retention pond the city had built behind our house. As he looked, I asked him what happens to the pond over the spring and summer. A bright boy, he said the water turns green and stinky and eventually evaporates. I agreed.

I then directed his attention to the ditch in front of our house and asked him to explain what he saw. He said water was running down the ditch and he would like to float a boat down it and through the culvert. Funny how things like that can intrigue a young man. Again, I agreed.

It was then I asked him the question I hoped would complete the picture; Which one was the most powerful? The ditch water or the pond water?

He said the water running through the ditch could take his boat down stream and cut a canyon if it flowed long enough. As his father, I was so proud he could reason this concept through. We continued to discuss it and agreed it could even be used to power a turbine like the ones at hydroelectric dams. Eventually we came to the logical conclusion flowing water is more powerful than water standing still.

In this spring-time scenario, the water was money.

I explained to Josh most people store their money and stored money is like the pond water behind our house. As it sits unchanging, it will eventually evaporate due to what I call the three wealth destroyers.

  • Taxes
  • Fees
  • Inflation

If we look at money from the perspective of the bank, we find the most effective way to manage and grow wealth is to set it in motion–much like the ditch water in front of our house.

Wealth is the Result of Continually Flowing Money

They say actions speak louder than words and that’s true for money management, too. Rather than listening to what banks and wealthy people say they’re doing, we should be observing how they really spend and store their money.

If we take a traditional bank at face value, we assume the bank is storing money for its customers. The truth is, they do much more than just store it. Money held by the bank is kept in constant motion through loans like those given to farmers and future home owners.

At Sage Wealth Strategy, it’s my job to help people understand when their money is stored, it is evaporating. As their guide, I teach them putting their money in motion will build and grow their wealth.


If you’d like to learn more about the Infinite Banking Concept and how to apply these principles to your own wealth growing strategies.

Get in touch with Wade Borth at (701) 793-3471 or by email at wade@sagewealthstrategy.com to get started.