Infinite Wealth Blog

Friends and family are the glue of life that can bring us great joy and peace over our lifetimes. The longer we nurture these relationships, the more profound their impact on us. What if there was something you could do in your financial life that also provided more profound peace for you over time?

In reality, whole life insurance has the potential to do this for you, if you nurture it and allow it to grow. The beauty of life insurance is that it provides instant peace through the knowledge that you won’t be leaving your loved ones financially burdened when you die. There’s no real price you can put on this comfort, which becomes more evident as you get married and maybe have children.

Chances are, the things you’re already doing in your financial life can be made even more efficient for you.

If you’re saving in a bank account, you can actually have more efficient accumulation in the cash value of a whole life insurance policy, for example. And if you’re withdrawing your cash to use, a policy loan with whole life insurance can make it so you don’t lose out on any compounding interest.

When we have our dollars do multiple jobs, we create efficiency. For example, when you use a credit card to rent a car, and you earn airline mileage through that card, your dollar is doing two things for you as opposed to one. You get the benefit of a car on your trip, while also potentially paying for a future plane ticket. And so long as you pay your balance, you’re getting a pretty good benefit.

This same concept applies to Infinite Banking and your whole life insurance. Normally, when you save money in the bank, your dollars do one job—they earn interest. If you need to withdraw funds, those dollars are no longer earning interest. They can only do one job at a time.

Starting something new can be daunting. We want to have it all figured out from the get-go, yet that’s rarely how things work. Usually, new endeavors have a learning curve. We’ve got to stumble and fail, then try again and hope it’ll be more successful. It takes work and patience. Sometimes, we just forget that life things take work. But how sweet it is when we get to see the fruits of our labor pay off.

Starting anything can be difficult, but there’s a unique challenge to long-term endeavors. Sometimes we don’t see the fruit of our efforts for many months or years. Especially when the thing we set in motion is happening in the background. In other cases, sometimes we are too close to something to remember the vision in the first place. And in these cases, we’re liable to forget why we started in the first place.

These days, many assets come with an interest rate that you must pay. Cars, homes, appliances, credit cards—these all have an attached rate. And while that rate, to a degree, is important, what’s far more impactful on your finances is the volume of interest that you pay.

For example, when you have consumer debt on a credit card, those interest rates can be massive. Yet even those huge interest rates can be manageable if the volume of interest that you’re paying is low. 20% on a few hundred dollars will be far easier to pay off than 20% on a few thousand dollars because the volume of interest goes from dozens to hundreds of dollars.