Financial Freedom Friday – Recapturing Money


Hi everyone! Welcome back to Financial
Freedom Friday. My name is Nate Scott, it’s great to be here. We’re gonna talk
about tips and strategies on these videos that hopefully will help you
achieve financial freedom. Today’s discussion is gonna be about something
that, if you’ve been around Living Wealth for any period of time or if you will be,
it’s kind of a buzz word. You’ll hear it quite often, and that is the idea of
recapturing money. Now in most people’s financial situation there are two main
ways, mainstream ways, that people will try to improve their financial
well-being. So one of the ways that many people here that they can do to improve
their financial well-being is to start saving more money and live on less. Save
more, live on less. That is not the most exciting way to do it, but it could
probably work. And the other idea is, okay I’ve got my savings, I don’t want to
change that, but I want it to do more for me. So what do they tend to do? They say, I
need to earn a higher rate of return on that money which normally means you have
to take more risk. And not everyone is too excited to take more risk. So while
both of those options can definitely increase your chances of reaching
financial freedom there’s kind of a third option that goes under the radar
for the most part and that’s the idea of recapturing, that I feel is very
important. So when I say recapturing money what I really mean is, what
I’m talking about, is trying to find ways to recover money that’s being, that’s
transitioning out of your life in one way or another. And so bring money that’s
just leaving back in and using that money, if it’s possible, to increase your
wealth. So one of the first things that we do when we’re thinking about
recapturing money is, one of the main targets we have is recapturing debt. So
if you have third party debt and payments are going out to them, we can
plug that hole and start, without having to take any risk or change your cash
flow, you can redirect money to come back in and actually earn interest and
dividends for you. And so that’s really what we’re going to talk about, is not
having to take any additional risk like most people would have you do, or
change your cash flow. In other words live on less money and save more. Those
are okay options, but I would like you to be able do
exactly what you’re doing, living the same lifestyle and maybe even reduce the
risk you’re taking and still improve your financial well-being and that is
through this concept of recapturing. So for example we’re gonna say you’re a
normal, average family, okay. Maybe you have some credit card debt, maybe you
have a couple car loans in the family, some lingering student debt. You might
have a mortgage, most likely have a mortgage if you’re listening to this. And
we’re just going to put a blanket number on this. We’re gonna say you’re paying on
the non-mortgage debts, we’ll deal with the mortgage later, but the non-mortgage
debts, the cars, things, maybe $1,000 a month total. A couple hundred on
the credit card, a few hundred on the cars and maybe a little bit on the
student debt. And you’re paying $1,000 a month and you’re trying
to save money. So the conventional wisdom, which I would kind of point you away, so
instead of following the conventional wisdom which is max out the 401(k)s, max out the
IRAs. And the problem with that is that we can’t use the money and so they would
just say keep paying the car loans, pay the credit cards, pay the
student debt with this money and take all your savings, which is essentially what
they’re telling you to do, take all your savings and max out your 401(k) and IRA and don’t touch it. Well, to do that is okay I guess, but the
problem is you don’t have access to the money and the only way to improve your
situation is to take more risk or to start putting more in. And so what we’d
like to do is show you how to maybe instead of putting the money there
change where you’re putting it. Let’s say, a banking policy like we teach all the
time. And so instead of directing money into those places we start saving money
into the policy with the goal of using the policy to take over the debt we have.
So as we’re building up this policy, it’s increasing its cash value, we start
taking cash value from the policy, borrowing it out, and we take over the
credit card. And the credit card payment now can be redirected back to you in
your policy. And that’s building the policy faster now that you have more
money going into it without changing your cash flow at all or taking any risk
at all. And so then we have enough money to take over the car loan, and then the
next car loan, and then the the student debt and now we have $1,000
a month that used to just be earmarked to go out of the family, is now coming
back in. You haven’t had to change your cash flow or change your lifestyle at
all. And you’re still hopefully actually
reducing your risk by doing this, depending on what you’re doing. So you’re not taking
on additional risk, you’re not changing your cash flow but now you have this
stream of money. Not only are you still saving money but you have this $1,000
a month that used to be payments that now is acting more like savings
because it’s going back into the policy to earn interest and dividends in the
policy with no risk at all, really. And that’s what we’re trying to teach people
to do. The power of recapturing is using money that used to be leaving your
pockets to earn interest and build your wealth for you instead of just hoping to
get a high rate of return elsewhere. And that’s the power of recapturing. If you
want to learn how to make high rates of return that’s great, but at least you
should do is have a foundation of where you’re recapturing all the money that
normally is leaving the family. So remember, if you don’t build your
financial freedom, nobody will. So let’s get to work. We’ll
see you next week.

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