You have the ability to take back control of your financial future by turning the banking equation in your favor, and it is easier than you think. In fact, this is nothing new — it's a proven system that has been around for many, many decades. Banks have enjoyed great success over the years. They handle their money differently from the way they teach the public to handle theirs. People who understand the Banking equation recapture part of the interest they have paid out to others, and they control their money. They collateralize their money and keep it working for them! Most people think they understand Banking—they write checks, put money into savings, and get loans at the best interest rate they can find. But they fail to understand the most important part. Again, as I have already shared with you, most people focus on the rate of interest or the monthly payment instead of the volume of money they are transferring away from their economic circle of wealth. Remember, once a dollar is spent, it is gone forever! Can you really imagine transferring as much as 34% of your wealth away to others unknowingly and unnecessarily? Stop doing that. Learn Privatized Family Banking (PFB). Read this chapter several times! Most people focus on three things when they buy something: price, monthly payments, and interest rate. Think about this: approximately 18% of the 7% 60-month car loan goes to interest (LOD). This is money spent and gone forever! And this is important, once deposited into a bank, you become an unsecured creditor of the bank. As you can tell, the VOLUME of interest is the real issue, not the annual percentage rate. It's like going to the doctor's office to get a shot of some kind — it is not the rate at which the medicine is injected into you — it is the volume! Too little and it won't do any good — too much and it may kill you! Remember the basic principle, you finance everything you buy. You pay cash and give up the opportunity to earn interest, or you borrow money and pay out interest to someone else.
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