Book Summary: Bank on Yourself – The Life – By Pamela Yellen

You need to go where the money is – the bank. Bank on yourself describes a strong financial method to having money flow into your economy instead of out of your economy. These principles are very sound and work.

A special note – Pamela is an excellent marketer. She has done a great job of creating a valuable system with the tutelage of Dan Kennedy, she monetized it well. This is a complement because through her marketing, she is liberating people from our traditional banking system which is leveraged to the hilt.

Why is this important to me?

I always want to ask this question as if I am sitting in your shoes. Will this summary benefit you if you review it? People today do not have robust savings. The savings rate in the U.S. is the lowest it has ever been. The financial community has been pitching 401K plans, 529 Education plans and other retirement vehicles. The problems with these instruments are numerous. People who wanted to retire in 2008 couldn’t because of the financial meltdown.

Traditional banks utilize fractional reserve lending and with the debt crisis at historic levels, there is risk with the largest banks. Stocks have been a roller coaster ride and the insiders have done well, the little guy – not so much.

Bank on Yourself is full of testimonials of people who have utilized the system. What I am going to profile are some of the high level, long term strengths of this system.

1. Insurance – The vehicle to creating your own banking system is Whole Life Insurance. I know that Dave Ramsey and Suzie Orman pooh-pooh insurance all day but the fact remains that this is the safest vehicle out there for investing and with discipline can be the best. Insurance is guaranteed tax free growth and has been around for 200 years. These policies are 100 years older than the IRS. Using this vehicle to create a banking system would have eliminated all the bust cycles that have plagued the economy in the last 25 years.

2. Taxes & Liability – Any financial plan has to be full cycle meaning that if you get sued, you will not lose your fortune. This is the case with insurance in most states. If you are a doctor and get sued, they can NOT touch your life insurance banking system. Taxes yield another huge advantage to this system. You can take a loan from your policies to buy a rental property and at an interest rate and write the interest off just like a typical mortgage. The strongest concept is that you are paying yourself back. The volume of interest goes to you and not the bank. Just like any business, it takes time to build up these reserves.

3. Habit – The key concept to remember is that if you finance purchases then you pay interest. If you pay cash for your purchases then you give up the interest. If you pay yourself the interest with your own banking system then you can achieve compound results. It is said that.34 cents of every dollar goes to interest expense. The critical point here is to understand that the “volume of interest” is what is important. In a conventional mortgage, the first 10 years of payments almost all go towards interest. That is the secret money maker for regular mortgage banks. The habit with this system is that you have to pay yourself back just like any creditor. The only reason this system will fail is if you steal from yourself. I cannot stress this enough, you have to pay yourself back.

I have touched briefly on this subject but I suggest strongly that you study it and implement it. You can check out other resources on the site for more information.

I want to give you a personal example of the power of this system. I have been using it since 1999 and each year my policies have grown and the money has allowed me to buy other businesses. (My insurance banking system has not been affected by the Tech bust of 2000 or the financial meltdown of 2008. They have grown every year because it is guaranteed growth.) This strategy has allowed me to capitalize my own business without traditional banking loans. This is a big deal and the key to Economic Value add. Banking on Yourself is a long term strategy. If you are looking for a quick investment fix then this is not the tool for it.

I hope you have found this short summary useful. The key to any new idea is to work it into your daily routine until it becomes habit. Habits form in as little as 21 days. One thing you can take away from this book is cash is always flowing. The real question is where. The goal is to have it flow to you.

A Day in the Life of a Teacher Using Technology

Let’s take a quick look at the technology adapted teacher operating in the future (the near future!)

It’s Monday morning, another day and another fun week in the tech supported classroom.

Mrs. Apple (Psst! That’s you!) walks into her classroom, quickly turns on her laptop and reviews the daily news program and podcasts that the students will soon be watching. She then proceeds to check out the schools web community where there are some announcements and where her students have been busy overnight finishing their online activities.

She answers a few of their questions about an upcoming project and addresses a few concerns from a parent about their son’s math marks. T he parent is traveling on business in the southern US but has been keeping an eye on her son’s progress in the schools password protected virtual community.

A journal, a science quiz and a French crossword were assigned for homework. Mrs. Apple reviews marks and comments on the activities quickly and efficiently without shuffling a page. She smiles as she notices that the students’ Space Glossary has grown to over 100 words. The morning news program will feature the return of the Space Shuttle so this may extract some additional space words. She reviews the latest entries and approves them to be posted on the website.

As the school day begins a student that loves working with technology enters early to set up the classroom projector, digital whiteboard and electronic tablet. He tests the equipment and the student response systems to make sure they will be ready for the days work. Meanwhile, the teacher loads several digital lessons, Power Points and websites that she will be using throughout the school day.

The students enter and participate in the schools opening exercises which are played over the schools multimedia system. The national anthem’s words run across the bottom of the screen as pictures of their country’s landscape and images for its history appear on the classroom monitor. Following the anthem a recorded inspirational message is given on the screen by a popular figure in order to give the students a positive start to the day and lessons that they will remember throughout their lives.

Class begins with a ten minute synopsis of world and national events delivered in a format that is appropriate for students. After a short discussion and activities related to the current events the students prepare to find out more about their world from people their own age. The class links up via video link with their digital pen pals on the other side of the world and a student moderated discussion begins that allows both classes to ask questions and gain a human perspective about their pen pals country which help them on their upcoming projects.

Once the online conference is complete, each student writes a formal letter to their pen pal and sends it via their school email. A few students attach their animated short movie which they created in computer class, while others send their video skits which they preformed in drama class and uploaded to their personal hard drives.

As it nears noon hours the excitement begins to mount as students prepare their questions for today’s special virtual guest; a real astronaut. Several other classes across the continent link into a video conference with the astronaut to hear about the training he underwent and the Science he performed while in space. Once they are inspired and informed by their newest hero they continue to work on their space websites which they have been developing over the past few weeks.

A few keen student web designers decide to put their skills to the test and enter a youth web design contest that is sponsored by a multinational technology company. The students get so engrossed in the project that they spend their lunch hour and weekends attempting to win the big prize.

After lunch, the teacher has the students answer questions using their electronic student response systems in order to gain instant information about the student understanding or lack thereof of the previous day’s lesson. After a quick scan of the quiz results the instructor uploads a few pages from the previous day’s lesson in order to give the students the necessary clarification they need.

Now that the teacher is confident that the class has a good grasp of yesterday’s lesson, he introduces the new topic using video, interactive software, the electronic whiteboard activities and constantly monitors their understanding using the student response systems. Once the lesson is complete students complete their assignments and a couple of students review the lesson again using a visual software program.

At the end of the day the class decides to add to Wikipedia. They have been updating information about the history of their town. One student has brought in an old history book belonging to her grandmother which will help the class find new information for their entry.

This is how the day and year continues in this technology supported classroom. Interactive lessons, professional online presentations, conferences, hands on activities and digital assessments are all used in an interesting, efficient and effective format. The only question left is…are you heading towards this type of classroom?