Spending a Dollar

Multiple Times

How Many Times Can You Spend The Same Dollar?

Recycle Your Money

We Will Teach You How To Spend

The Same DollarAgain & Again

Banks Do It – You Can Too!

Where do banks get their money from?

What do you receive in return?

What does the bank receive?

We Want ToDuplicate The BANK!

Answer: From customers who make deposits

Answer: Interest.

Answer: The opportunity to loan the customers deposits to people who want to finance things. In return, they earn more interest on the loans than they pay the depositors. Banks are able to use the same dollars over and over again to make more money and you can too. We want to duplicate the bank.

Velocity of Money

How Banks Really Make Money

Let’s examine how the “velocity” of money or money being “recycled” benefits the bank. As you can see in this slide we are illustrating 250 car loans being made from an initial capital sum of $5 million dollars. As the monthly payments come in the bank is able to use that money to make more car loans, an additional 6 after the first month.

As each month goes by, more and more car payments are being made and can be used to make even more car loans. By the end of the first 12 months there have been total payments of over $1.6 million which allowed the bank to make an additional 72 car loans! And that is just the first 12 months. Every month the bank collects more payments from more loans and every month the amount of capital available to the bank is increasing! This is the incredible power of the velocity of money! Wouldn't you like to harness that power for your benefit instead of the banks? We can show you how!

Velocity of Money

How Banks Really Make Money$5 Million in Deposits = 250 $20,000 Car Loans

$20,000 Car Loan @ 8% for 4 Years = $488/monthMonth Total Car Loans Monthly Loan Payments New $20k Car Loans For Month

1 250 $ 122,000 0

2 256 $ 124,928 6

3 262 $ 127,856 6

4 268 $ 130,784 6

5 274 $ 133,712 6

6 280 $ 136,640 6

7 286 $ 139,568 6

8 293 $ 142,984 7

9 300 $ 146,400 7

10 307 $ 149,816 7

11 314 $ 153,232 7

12 322 $ 157,136 8

YTD 322 $1,665,056 72 New Loans

The Volume vs. Return of Interest

How Banks Really Make MoneyBuying a Car Example

$20,000 Car Loan @ 8% for 4 Years = $488/month

Year Payment Cumulative Payments

Annual Interest paid

Cumulative Interest Paid

Cumulative Volume of Interest

1 $488 $5,856 $1,444 $1,444 24.7%

2 $488 $11,712 $1,070 $2,514 21.5%

3 $488 $17,568 $616 $3,130 17.8%

4 $488 $23,424 $246 $3,376 14.4%

Total $23,424 $3,376 14.4%%

Understanding interest rates and the volume of interest in the banking process is extremely important. As you can see in this example, the loan interest rate is 8% but the volume of interest as a percentage of all the payments made over the loan period is 14.4%.

The Volume vs. Return of Interest

Year Payment Cumulative Payments

Annual Interest paid

Cumulative Interest Paid

Volume Interest/Year

1 $14,389 $14,389 $11,933 $11,933 82.9%

2 $14,389 $28,778 $11,780 $23,713 81.9%

3 $14,389 $43,167 $11,658 $35,371 81%

4 $14,389 $57,556 $11,450 $46,821 79.6%

5 $14,389 $71,945 $11269 $58,090 78.3%

30 $14,389 $431,676 $457 $231,676 53.7%

How Banks Really Make MoneyBuying a House Example

$200,000 Mortgage @ 6% for 30 Years = $1,199/month

The longer a loan period is, the greater the volume of interest is in comparison the total of all the payments made, such as in the case of a 30 year mortgage. The cumulative volume of interest in this example is an astonishing 53.7% of all payments! If you were to refinance this loan at the end of the 5th year the volume of interest would be 78.3%. Wouldn’t it be great if you could be the one collecting all that interest instead of the bank or mortgage company?

Interest“Compound interest is the 8th wonder of the world!

Those who understand it - EARN IT!Those who don’t - PAY IT!”

Learn To Be The Bank

Banking - The Players

BANKER

BORROWER

LOAN

LOAN PAYMENT

SAVINGS DEPOSIT

SAVINGS INTEREST

SAVER

Banking – The Players

There are three main players in the banking process, the Banker, the Saver and the Borrower.

Each plays a vital role. Without the Saver the Banker has no money to loan. Without the Borrower the Banker has no way to earn interest on the Saver’s money.

Without the Banker the Saver has no place to safely safely store their saved money and the Borrower has no place to go to finance the things they want or need.

Velocity of Money

On the next slide let’s take a look at how the velocity of money could be used for your benefit. We will begin by assuming you have some money to begin the banking process. In this case , $50K you have saved. In year one, you want to purchase an SUV for $50K. You were the Saver, now you are the Borrower, but as the Banker you insist that the $50k be paid back over the next 72 months at 8% interest. This requires a monthly payment of $877/mo. By the end of the first year you have paid back to your “bank”, $10,524 at which time you decide to purchase two 4 wheelers for $10,000. You create a loan repayment plan, also at 8%, which requires a monthly payment of $452/mo for 24 months. At the end of year two you have $16,472 in your “bank”. At the beginning of the third year you want to purchase $10K worth of furniture. So you loan yourself the $10,000 and create a payment plan at 8% interest for 48 months of $244/mo. At the end of year three you have $25,348 in your “bank”. By the end of year 4 you have $38,800, year 5, $2,252 and by year end #6, you have $65,704. You used the same $50K to acquire $70K worth of vehicles and furniture and your “Bank” now has 31% more capital than it started with! Can you imagine using this system for all of your major purchases over your lifetime! That is the power of compound interest and the velocity of money working for “you” instead of someone else!

Velocity of Money

Using The Same Money Over and Over...

Using $50kTo make

Multiple Purchases$244/mo

4 years @ 8%$2,928/year

$452/mo2 years @ 8%$5,424/year

$877/mo6 years @ 8%$10,524/year

3rd Year$10k Furniture

2nd Year$10k 4 Wheelers

1st Year$50k SUV

End of Year BalanceYear 1 $10,524Year 2 $16,472Year 3 $25,348Year 4 $38,800Year 5 $52,252Year 6 $65,704

31% More Capital

Ways The Bank Makes Money

• Interest on the money• Volume of interest• Recycle the same money (Velocity)• Choice of investments• Terms of the money (rate, time etc.)

• Tax free growth!• Tax free retirement!• Tax free windfall to your heirs!

With Your Family Bank Add

Become Your Own Bank!

We teach people how to create, capitalize and run their very own

Family Banking System!Would you like us to show you how

to be your own banker?