Step by Step ~ Part 1 What is Velocity Banking

Creating a budget, Velocity Banking, Infinite Banking, Wealth Creation

Ready to become your own banker?

Step by Step

[cspann]

This was a more simpler video to understand than others I’ve seen. I still need to learn the concept though. I wish there was platform to ask questions

[markf.]

You did not pay both bills with the same $100. You borrowed the extra $100 from the credit card which will have to be paid back later along with the same usual bills of the next month. Oh, but your cute drawings make this strategy look so believable!

[mariakristinahawl]

If your goal is to raise your credit score, fico requires a loan to take 24 months of on time payments to pay the loan. My credit score went down when I paid my car loan in 5 months. I bought another car and waited till the 25th month to make tye last payment and my score skyrocketed.

[iamDavidaRose]

“You guys like this car!? It’s a Tesla” 😂😂😂😂 genius!

[chess]

But what it doesn’t cover is. If you FKd your credit rating, you can’t get credit to help you start in the first place.

[konkol]

Yes. It is life changing. I am 50 and I so wish I would have known about this type of banking 20 years ago or even 5 years ago. But, never too late to learn and put these to practice. I just paid off one car loan in 2 months saved $1800 in interest. I used two credit cards for my debt elimination tool. I am now onto my 7k personal loan and then 5k personal loan then I will tackle my other car loan.
Credit cards and checking Line of credit. Persona line of credit are all simple interest debts (good debt)
Any debt that has LOAN in the name is a amortizated interest debt (bad loan) these are front end loaded with high interest payments at the beginning and low prinicipal. As time goes by the monthly payments then start to even out and more goes to principal towards end of loan

[jonathandavidramlal]

That would mean, you would always be broke. As a result, you are owing to the credit card. Imagine you lose your job, you will be in dept.

[KenkesStadler]

Great advice. I am a real estate broker and can use this info. Thanks

[grumylynn]

"cashflow staying in" meaning the interest and minimum payment, repeated transfer of income? Please clarify. thank you!

[terriissac]

I am new to velocity banking and I've gotten my line of credit. But what I don't understand is how is it that if I'm putting my money into the line of credit? How are the bills getting paid? Are they taking it out? And when I say they I mean credit Union take it out of the line of credit? Or am I putting my check in and then taking it out?

[alexandermcafee]

Rob Peter to pay Paul. All to save a couple hundred on interest.

[billy]

This is wild. If you buy a car and your interest is $250/month, that's $3000/year. Car loans are like 2%, so that's a principal balance of $150, 000. And on what term would you have to buy a $150, 000 car on to get a $300/month payment?

This method is not good because it doesn't make sense. Using whacked out numbers to make a point is a symptom of this.

[TheFATWRISTS]

Velocity banking is a risky way to do things and relies on your ability to actually pay back the line of credit. If you are a person that struggles to afford to pay basic bills like in the example you are just going to end up paying a chunk of your car off, still having car payments and then having a maxed out credit card you also need to pay. Using a dollar twice is more like borrowing a dollar twice....

[skip]

It makes no sense to put your money into a LOC that then becomes their money and then have to pay interest to borrow it back?

[gradysimpson]

Try to do a better job at explaining this. However the tools you used to was great! 🙂

[Vinz]

i leave in France, this methods could be great but for us interest rate for 25 years is about 1.55%, and using credit card loan is about 6% so we can't payback until 25 years

[calvinemery]

Can I do velocity banking with only a $500 credit card? If so can you explain how?