Ep. 315 - The True Value of Money

Too many people think that lending money to family or friends should be “interest-free” — but that mindset is costing them big.

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In this episode, Mary Jo and John dive into the Becoming Your Own Banker chapter about how to create your own banking system using dividend-paying whole life insurance.

They break down why your money always has value, why charging interest (even to your kids) matters, and how Infinite Banking solves the problem of lost opportunity cost.

From the biblical case for interest to the inner workings of life insurance companies, Mary Jo explains how EVA (Economic Value Added) applies to your personal finances, why guaranteed growth is a game-changer, and why building a system of policies is a decades-long wealth strategy — not a quick fix.

Whether you’re skeptical about IBC or already sold, this episode will open your eyes to how the banking system works, why insurance companies are more conservative than banks, and how to structure your own “family bank” the right way.

🔑 KEY TAKEAWAYS

• The biblical foundation for charging interest and valuing your money
• Why you finance everything you buy — cash or credit
• How EVA (Economic Value Added) applies to personal wealth building
• Why insurance companies are safer and more conservative than banks
• How guaranteed growth and dividends actually work in whole life policies
• Why a system of policies — not just one — is key to financing all your needs

⏱️ EPISODE TIMECODES
(00:00) – Why lending money to your kids at interest isn’t “mean”
(00:31) – The myth that your money has no value
(00:45) – BYOB: Becoming Your Own Banker, the book that started it all
(01:16) – Creating your own banking system through whole life insurance
(01:48) – The biblical case for putting money to work
(03:14) – What “banking” really means and why the system is flawed
(04:39) – The principle that you finance everything you buy
(05:10) – Understanding lost opportunity cost
(06:28) – EVA (Economic Value Added) and the need for the right tool
(07:18) – Whole life insurance as the ideal tool for EVA
(10:01) – Why cash buyers are perfect IBC candidates
(12:01) – Uninterrupted vs. interrupted compound interest
(13:08) – The role of actuaries, rate makers, and lawyers in policy design
(16:00) – Whole life guarantees vs. investment risk
(18:23) – Policy owners get first dibs on cash value loans
(20:00) – How insurance companies invest your premiums
(22:44) – Overbuilding for safety: the “fudge factor” in insurance
(24:21) – Guaranteed efficiency increase in policies over time
(26:00) – How dividends work and why they’re tax-deferred
(33:08) – Why the right agent matters for tax strategy
(35:02) – Human life value and how much insurance you really need
(38:02) – Financing needs outweigh life insurance needs
(40:24) – There’s only one pool of money in the world
(43:48) – Banks borrow from insurance companies — not the other way around
(45:39) – Why paying yourself interest matters
(47:53) – Capitalization and why it’s not a 4–7 year lockup
(49:25) – A system of policies takes 20–25 years to build

📚 RESOURCES & LINKS

📘 Grab your copy of Farming Without the Bank & Becoming Your Own Banker:
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