If you want to take control of your finances, there’s a powerful yet often-overlooked lesson in Becoming Your Own Banker by Nelson Nash. It’s the foundation of the Infinite Banking Concept (IBC), and it starts with one simple principle: make your money flow back into a system you own and control. Most people miss this—so let’s break it down with a real-world example.
How Traditional Financing Keeps You Out of Control
Let’s look at something familiar—buying a car. Most people take out a loan from the bank, hand over their interest payments, and move on. But who’s really winning? The bank. Your money flows into their system, not yours. Even if you avoid interest by paying cash, you still lose the chance to grow that money elsewhere. Either way, your money is flowing away from you, and you lose control.
The Power of Owning Your Own Financial System
Here’s where Nelson Nash’s brilliance comes in. He asked: why not let that money flow back into an institution you own and control? That’s the heart of Infinite Banking. Whether you call it your “Family Bank” or something else, the goal is the same—take control of your finances by building your own system instead of relying on big banks.
Everyday Choices That Keep Money in Your System
Think about all your expenses—cars, home improvements, services. In most cases, your money ends up in the hands of institutions like Wells Fargo, Chase, or Bank of America. Do they align with your values or help you build wealth? Probably not.
Let me share a simple example. I used to pay someone to trim the hedge in front of my house. But recently, I paid my son to do it instead. That money stayed within our family and supported his growth, both financially and personally. It’s a small act with big meaning: the money stayed in our system.
Build a Financial Strategy That Supports Your Family
These small decisions reflect a much bigger mindset shift. Every time you spend, ask yourself: “Is this money leaving my system, or circulating within it?” Whether it’s a car, a contractor, or even paying your kids for chores—redirecting your money means building a financial strategy where you remain in control.
Final Thought: You’re Already in the Banking Business—Act Like It
Here’s the truth: you’re already in the banking business. The question is, are you the banker, or is someone else calling the shots? Start by beating Parkinson’s Law—the tendency to let spending rise with income. Save 10-30% of what you earn. Build your own pool of capital. From there, you can make empowered financial decisions without asking a bank for permission.
It’s time to take control of your finances. Stop letting big banks dictate what you can do. Instead, redirect your money into a system that serves you and your family.