The Velocity of Money is a term that every banker knows and most of the masses have never heard. This concept refers to the banker’s understanding that money cannot stay stagnant AND the faster money moves, the more profits are made.
You could think of it as turning your money.
You see, banks don’t let money just sit around. Yet, they interestingly encourage you to do just that with your money.
NOTE: the banks convince you to store your money with them so they can use it (exponentially multiplied) to make loans. We talked about this in yesterday's banking secrets e-mail concerning the fractional reserve system. Using the fractional reserve system, the banks can pursue maximum velocity by convincing you that your money needs to be kept safe and that compounding interest will be enough to offer a great return.
People often choose security in exchange for freedom and opportunity, so it is easy to buy into this myth of safe stagnant money.
Ask yourself honestly what your money is doing right now? Is it sitting idle in an account getting .01% interest? Or is it moving to further your wealth building?
Taking advantage of the Velocity of Money is one of the key aspects of infinite banking, which allows you to systematically grow your money in a TAX ADVANTAGED and TRUE COMPOUNDING environment WHILE also being able to use it (with total liquidity) to pursue higher risk return investments in your area of expertise.
Consider this simple formula:
Tax advantaged growth + true compounding + liquidity + leverage = maximum velocity.