To create wealth you must understand some fundamental wealth principles. Here is one aspect of our wealth coaching programs, learning how to think, act, and profit like a banker.

So let's get inside the bankers head and see what you can learn about your views of making extra money, building lifelong wealth and creating total financial freedom.
Bankers Think Safety FirstA banker is charged with the responsibility of running his bank at a profit. He is trained to think safety first. Bankers follow a strict set of rules that have proven effective for hundreds of years. Anytime those rules are broken, banks get into trouble and bankers lose their jobs. We can see that in recent bank failures around the world. The Bankers’ Rule Number One is: Do not take risk.
As bankers bent this rule and started buying and selling over-valued mortgages, assuming the value of real estate would always appreciate, they got caught with their pants down! Collateral is an asset that the bank holds title to until a loan is paid back.
Banks have always been good at collateralizing everything they can but recently, when the value of the real estate collateral they were holding became less than the obligations of the loan, things began to fall apart. The market declined, the domino effect kicked in and bank after bank toppled because they broke their number one rule – Do not take risk! Apply this to your thinking as you prepare your plan for retirement.
Bankers Make Money When Money FlowsThe banker’s job is to manage the money flowing in and out of the bank. Not the bank’s money but the customer’s money. A good banker is involved in his community, good friends with important people, and always there when you need a safe place to put your money or to get a reasonable rate on a personal or business loan. He’s great at PR for the bank, giving away coffee cups, calendars, and other things that show his support for his community. He is constantly looking for ways to find savers and borrowers.
The bank's owner has made it very clear to its banker that he must always manage the bank in a way that shifts risk. In other words, don’t make investments and always use other people’s money, not the bank’s money.
This is likely one of the reasons people are cynical about the banker’s implied philosophy of
“You can’t borrow the money unless you can prove you don’t need it.” While not exactly true, it is an indicator that people recognize how good bankers are at shifting risk away from the bank and back to the borrower. How can you "shift risk" the next time you invest?
This philosophy is related to another that has stood the test of time: “The last one in, first one out.” Let’s say you have a growing construction business and you need a new truck. Your banker is happy to take your application for a loan but it comes with a few strings attached.
First, the banker needs a down payment, just to show your good faith, of course. Second, he’ll hold onto the title until you make your final payment. Third, you must prove that you have insurance on this vehicle, which you must pay for but it really protects the bank. And fourth, you must agree to all of the terms spelled out or your banker has the right to take the vehicle back at any time. Notice how the banker controls the entire agreement and minimizes his risk in all directions?
Wealth Training by the TruckloadIn essence, the banker owns your truck. Here’s the last one in, first one out philosophy. The banker’s money came in last, after you first put up the $5,000 down payment; which is of course, money your banker will lend out and earn interest on many times over in the coming year. Your banker was last to give the auto dealer you are buying the truck from the rest of the money needed to purchase the truck. The banker will also be the first one out if things go wrong. If you don’t make your payments, he holds the title and will be first in line to come and take the truck back if his money is at risk.
Now we don’t mean to sound cynical about your friendly banker here, we’re just pointing out how totally committed he is to following his rules, doing what has worked for the bank owners for generations. When the banking system is used and the rules are followed, the banker brings in a nice profit to the bank owner. And of course, when everybody fulfills their part of the banker/borrower relationship, everyone gets what they need. You get your truck, the banker keeps the cash flowing, and the bank owner gets his profit.
Wealth Principles and Banker's RulesThe banker’s success depends on you making all of your payments in a timely manner. This cash flow gives the bank a predictable stream of income that can be loaned out over and over and over again. You pay 6% interest to borrow the money and the bank makes 6% interest, not just you but on many others who will borrow from your down payment and monthly payments coming in for years to come.
What if you were the banker? What if you could recapture some of that interest going out to the bankers and put it in your pocket instead of his? This process called “recapturing” is a critical part of designing your own banking system.
Here are some of the important lessons from the banker’s point of view.
1. Successful Bankers don’t risk their money
2. Successful Bankers don’t break the rules
3. Successful Bankers don’t invest
4. Successful Banker maintain control
5. Successful bankers profit from cash flow
6. Successful Bankers are the last ones in and the first ones out
7. Successful Bankers maintain control
8. Did we mention successful Bankers maintain control?
How much control do you have on your finances? Want to learn more? Join us in one of our many wealth coaching programs and start building financial freedom by learning how to think, act, and profit like a banker!
Have a prosperous day!
Gabby Huguenin
Wealth Coach
CEO Wealth Classes Coaching, LLC
www.WealthClassesCoaching.com888.888.3612