In the first installment on this topic we focused on:

• ~ the struggles of the banking industry
• ~ the impending failure of both small and large banks
• ~ the sub-prime lending debacle
• ~ the difficulty individuals without top tier credit ratings face obtaining credit of any kind
• ~ the general difficulty that this situation creates for everyone

In this installment, we focus on what is, perhaps, the prime reason for you to consider starting your own “bank” by using cash value life insurance as your foundation. When you own a quality cash value life insurance policy that accumulates money that you - and you alone - control, you have a source of  borrowed funds that profits you - and only you.

When you borrow from others you make them wealthy. In a recent post - The True Cost of Financing - we demonstrated how the typical American wastes money by giving it to retailers. The truth is that our entire economic system today is designed to make others wealthy by having you pay them interest. Not only that, the interest is paid on money you have not yet earned. Get your mind around that. It’s important.  Credit cards are the biggest offenders. Auto loans, retail store charges and even mortgages follow close behind. You borrow money you have not yet earned and then you have to pay your earnings PLUS interest to a Behemoth that cares not one nit for you. You are a source of wealth for them. Thay are the source of your poverty - now or in the future.

The reason personal economies fail is because they incur debt-to-others. The boomers are headed for disaster because they have bought into the “Debt Paradigm.” They believe they can have everything they need and anything they want as long as they have enough credit.

They have lost sight of the basic truth that debt is bad for them. They listen to the merchants of misinformation and the financial snake oil sales reps who convince them - because the reps themselves are deluded and convinced - that “the market” will take care of them “in the long run”; that mortgages are good things; that debt is the path to wealth. It’s all BUNK!

The only way to have a personal economy that lasts in good times and bad is to have a foundation of ready money that you control and that you can use to support the Four Pillars of your - and every -  successful personal economy. (Visit the Four Pillars page.) That’s what we mean when we say you need to manage your money in a way that lets YouBeTheBank.

Please, visit www.TheMoneyForLifeBook.com There are a few people in the country that understand the problem and the solution and this book explains it well.

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