Velocity Banking Step By Step

Are you ready to
velocitize some money? Because I am. Let me tell you– I did my work, I did my homework
on this case right here, and we are going to
really break it down for a few select
subscribers of mine. I want to shout you guys out. You know, shout out
to my friend Freddy, [? Lidi, ?] Raul, Laura,
Jim Grant, and Tucker. Be paying attention in
this video my friend. We had some interesting
conversations in the comments, and I really want
you to get this. So this video is not
only for the person that I’m working with, but
it’s also for you, all right? And for all my other loyal
subscribers– hey man, it’s time to fill out that form. Listen, I’m well over
thirty five forms submitted. So if you don’t get yours
in now, I’m telling you it’ll be too late because
when this blows up, it’s not a matter of
if, when this blows up, I’m going to have to
close the gates man. And then I have to just
serve the people that took action early on. So without any further
ado, let’s dive in. We have a mom– 43 years old,
married, two kids, OK? Making $3,500 a month. Their expenses, $2,819.61. Their debt– oh my god. I did not write that. Their debt is $30,000 plus. Sorry about that. $30,000 plus debt. Their cash flow, $350 to $400. In this example, I’m
going use the 350, OK? Now if you did the math, her
cash flow is actually higher, but I’m going to work
with this, OK my friends? I’m going to work
with this number, and I’m going to
kill debt so fast. You’re going to be like no. That can’t be because her cash
flow is this and duh-duh-duh. Hear me out. Ready? So we’re starting off with
the credit card debt balance September $1,802.03, OK? Class, I need you
pull out your notes. I need you to write
down some numbers for me so that you and I are
on the same page, OK? So look I need you to write
$100 for the phone bill, $350 for the food, $160 for
the gas, $350 miscellaneous, $300 volleyball fee, $53
towards the credit card itself plus $350 of cash flow. You are going to get that
number right there, $1,663. That is our initial chunk
for the month of September. What happens? The balance goes
down to $13,903, OK? But she has expenses that
I just went over, OK? That number of
expenses equals $1,260. So by this month we
made a chunk of $1,663, lowered the balance of the
initial debt significantly. I cut off interest from
accruing on the debt. I satisfied this
month’s payment. I won’t have a payment
until next month. At the same time,
I paid my expenses through here, which gave
me a balance of $1,399.03. Month two, I make
a chunk payment– less. My balance is this. Where’s my cash flow? It’s in my checking
account, right? Increased it
already– month one. So my chunk is going
to be $1,399.03. I’m going to zero the
balance out for that month. I’m done. $1,802.03 done in one month. One month, right? Month two. We zeroed out, OK? But we had to run
the expenses again– $1,260, OK? So by the end of
month two, guess what? Month three comes in– zero the balance out. We zero the balance out. So now I’m done, right? Initial debt, I’m done
with the expenses. My cash flow is up $53 for both
months from that credit card, right? So add that to the
cash flow, all right? My balance is zero. Here’s my next debt, OK? It’s $2,100. The monthly payment on
this debt is $300, OK? So what am I going to do? From the same exact
credit card, we’re able to use a credit
to kill this debt, for this specific debt for
this specific scenario. So I take this
credit card that’s at a zero balance currently,
OK, on the timeline, and I make a chunk at
the debt for $2,100. My cash flow is up $300. Do you see that? My cash flow just went up $300
for the next month, all right? Because now look,
I’m going to make the same chunk, same chunk– $1,633, right, which is my
expenses plus the same cash flow, not even using the extra. What if I did, right? What if I did? I’d be that much faster, I’d
be that much done that quicker. My grandma was
terrible in that sense, but you know what I mean. You know what I mean. So look, $1,633 goes in,
brings $2,100 down to $467. Now my expenses are
down $300, are they not? Right, so only $960 goes
out on the credit card, OK? Which leaves me with a
balance back up to $1,427. When I get the statement
bill, understand that you’re pushing the
due date out every time you make a chunk. You satisfy the month’s payment. So it buys you 30 more days
to get paid so that we don’t pay interest on that money. Does that make sense? Yeah. I’m with you. OK. So look– that same
month, $1,427 chunk. We have the money. We have it, right? It didn’t leave us. It’s either sitting in
the checking account or it’s sitting in
the credit card. Either one. Either one, right? So $1,427 chunk. $960 goes out, right? So $2,100 done, right,
after the next month. To pay my expenses is $960. By the time I get
that bill, guess what? It was the cash that I already
had over here, over here, in expenses, right? $960 chunk. Zero out the credit
card, my friend. We’re done. We just killed
$2,100 plus $1,802.03 in less than five months– four months to be
exact, four and a half. All right. Four to five months. Now what do we do? Right, we just killed
well over $4,000. That’s not bad. Cash flow is up. $353, right? So now we’re at like $600, $700. We’re probably at
$1,000 my friend because her expenses
are now down $353. What are we going to do now? I wrote it for you. We’re going to apply for a line
of credit $5,000 to $10,000, and our next debt
we’re going to tackle is our personal loan that we
have for just under $7,000. And we’re going to do the same
thing, but now what gets better is her cash flow is
high enough where we can make bigger chunks. We can literally make one
chunk on that personal loan. That loan would be
done in one month. My cash flow goes up $219. So the amount of time that
it would take to zero out the line of credit– much quicker. All right. Soon as we zero out that
balance, what do we do next? We tackle the car. She owes $20,000, but get
this– on the timeline it’ll be less, right? It’ll be less by a few thousand
by the time we get to that car because she’s still making the
payments each and every month, right? So that car– a year. A year, my friend. We’re done. So having a wonderful
conversation with this wonderful woman, and I
said, look, we’re 43 years old. By the time we’re
46, we’re done. Done. Even before that,
because I’m calculating, I’m low-balling her, right? So we’re actually going to
be done by like 45 years old. Easy. Easy peasy, right? And she is a happy woman, OK? She’s praising the
name in Jesus’ name. Amen, OK? She’s going to be dancing,
and let me tell you– the energy in the
household, the stress relief inside of the household
is going to leave, right? Only positivity is going to
come in from this channel, from this family,
from me, right? And now we can focus
on building wealth, leaving a legacy behind for the
family for the next 10 years, 10 to 15 years, right? So by the time she’s 59 and
1/2, OK, or even before that–, 55 years old, oh man. Oh man. She’s set. Not only is she set, the next
generation of her bloodline is set. Not only are they
set because she has the knowledge, the wisdom,
right, the purpose in line, multiple generations down
the bloodline would be set. Set. Listen, I hope you enjoyed this. My name is Denzel. My purpose here is to serve
you in your personal finances, helping you get out of debt,
increase cash flow, lower expenses, and raise
your credit score, all using your own income. Have a good day. Thank you.

27 thoughts on “Velocity Banking Step By Step

  • Denzel, whoa! Second month of credit card not clear at all. If you charge the expenses back on card how does balance just dissappear? You would have to pay more on it next month or how do you pay expenses and get to zero? 🤯

  • Thanks Denzel that makes much more sense now. My next question now is once you get a LOC, does it work like a credit card or a debit card? In other words, how do you pay things with it once you dump your pay check into it? Let me know. Thanks

  • Thanks for another video. I watch day and night and can’t wait until you receive my numbers. I just acquired a PLOC in anticipation of response. God bless

  • I am a bit confused if the initial monthly expense is 1633 and you pay that chunk how do your expenses go down to 1260??

  • Great video… . My question is using the help I get the chunk amount that is used towards the mortgage…. But would we keep paying the regular mortgage payments too? Meaning, every month do we still pay the regular mortgage bill ontop of the chuck payment we payed towards principal?

  • Got approved for a line of credit from Bethpage today. 15K. However, the rep said I can't use the account to set up for direct deposit with my employer. I hear in videos people say to set up the loc account for direct deposit so that my salary goes directly into paying it off…

  • I got 500 cash flow a month the only debt i have is a 315k mortgage whats your advice? I got a 5k line of credit im gonna start putting that towards the princle but gonna take me at least 11 months to pay back that loan. Anything else i can do? Whats your advice bro

  • I watched several other videos about Velocity Banking, two of which were excellent. And the only reason I decided to watch this video was because I wanted to see it play out with different numbers (a lower income, and less cash flow). But you lost me at 3.46 minutes and I have no clue what you're talking about.

  • You didn't explain her credit limit on her credit card. I'm assuming her credit line on her credit card you're using for this example was more than $2,000?

  • I wish I would have stuck to it, so crazy to think I was actually doing this without knowing it was an actual concept. Man, thank you so much for teaching!!

  • I think I have a dumb question. What do you do with your cash flow money? Does it go into the LOC or does it stay in checking/savings?

  • Once the heloc is paid off after chunking, do you pay off expenses for that month and wait another month to chunk again? I'm getting stuck on the final payment, and when I can chunk again without affecting the $$ for my expenses since those will still be due for the month after my paycheck pays off the balance. Hope that makes sense.

  • Not really getting month 2 clearly, my apologies. So when she gets that new credit card balance of 1399.03, how much is going to be chunked against it? Will she have money left over and if so, where does it go? Do you take the 1260 in expenses and subtract it from the cc balance of 1399.03? I got lost here lol

  • I have no idea what you are trying to communicate because you are speaking in half sentences and you do not finish your thoughts. Sorry.

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