If you have read my book, BYOB - Be Your Own Bank, you learned strategies to get your financial life together. You learned new ways to invest and use leverage to create passive income with the money you have, no matter how much you earn or have already. 

I called it “Be Your Own Bank” because it is a metaphor for the system you could use to put money to work for you, instead of you working for money. I borrowed ideas from real estate investing, traditional investing, mortgage pay down strategies and business financing strategies. These ideas were formed over 30 years of trial and error, advice from industry experts and a dedication to lifelong learning.

I believe that you need to learn how money works, before you dive into the investing world. There are too many industries that prey upon people who want to invest but don’t have enough information to do it themselves. They want you to “to leave it to the experts”. They charge you fees to take care of it for you and this is supposed to give you “piece of mind”. If you have been watching the Questrade commercials you are aware that the younger generation are waking up to the fact that there is a better way handle your investing strategy and want to do it themselves. 

I love this philosophy! Do-it-yourself investing or do-it-yourself “banking” is a healthy attitude in my opinion. I have been preaching this idea for years. Money isn’t that hard. All you need is grade 6 math and you can figure this stuff out. Learn how to make a spreadsheet and you are set.

It is a Metaphor

When I say “Be Your Own Bank” I mean to think outside the traditional banking or investing box. I love banks, as they are a great resource to use in order to grow and protect your money. Their business is lending money to people who can pay it back and if you have read any books on proper investing/wealth building, you understand that you will have a difficult time growing any substantial wealth unless you use leverage or “other people’s money”. Rich Dad Poor Dad explains this concept very well. It should be required reading for everyone before they become an independent adult.

I suggest using the bank’s own methods and treating your money as if you were sitting on the other side of the banker’s desk. How would you structure your investing strategy if you were in the banking business? How would you use leverage to maximise your wealth? Sometimes looking at something from a different perspective can create new ideas and open up possibilities that were hidden or not apparent. So I am on the financial education or financial literacy bandwagon.

F.I.R.E.

Financial freedom is a concept that is gaining mainstream popularity due to the F.I.R.E. movement (Financial Independence, Retire Early). This is a great philosophy and a lot of great books and blogs are being written about it. 

The key concept to living the F.I.R.E. lifestyle is living on less than you earn. This is a very legitimate foundation with which to build any financial freedom plan. However, it doesn’t end there. You have to have a strategy to build a nestegg and maintain it. You have to keep up with inflation. You have to protect your nestegg. You have to figure out what your priorities are in life, in order to spend on things that bring joy and value into your life and NOT spend on things that really don’t. 

The World is Changing

In Be Your Own Bank I explained some strategies that address some of these concepts. I went into depth on the money machine blueprint, but briefly touched on the philosophical and practical ideas. 

In order to rectify that, I have written a new book that really emphasises the “Why” you need to be your own bank. I attempt to compel the reader to take control of their financial life not because it is a cool concept, but because I believe it is almost a necessity in this modern world. The financial plans that our parents lived by are mostly ineffectual these days. 

As the world changes, so must our strategies. This is a mantra being repeated over and over again in the business media. 

“The rate of change is increasing”

“Fail faster”

“Adapt or die”

“The company that is the most nimble wins”

..and so on.

So if this applies to the business world, why would it not apply to our personal finances? Nothing happens in a bubble. Our personal lives and financial plan are a part of the greater whole. All things are connected. As the macro world goes, so does the microcosm of our personal world. 

Keep Learning

By staying educated and informed about personal finance,  you are giving yourself a chance to perhaps take advantage of new ideas and strategies that arise in the cacophony of information available. You owe it to yourself to refuse to be a victim and be tosseld about by the winds of change and set your sails in a direction that empowers you. A proactive approach to your wealth is more important than ever.

While I am very proud of the books I have written and believe they could be helpful to anyone who reads them, I also love to encourage my readers to read as many books as they can about money management, investing and personal finance. Read a personal finance blog. Watch YouTube videos. There is a ton for free content that has the ability to spark creative ideas about how to get ahead in your financial life. 

Take a course. 

Attend a seminar. 

It is all about you assuming personal responsibility for your financial future.

I hope that if you take the opportunity to learn about money it will inspire you to really internalise the understanding of why “being your own bank” and embracing financial literacy is not only a cool idea, but an imperative in todays world. 

We live in a time that is full of opportunity like never before in history, but you must be equipped with the knowledge to take advantage of this abundance. Set yourself up for success by doubling down on your financial education. It is probably the best investment you will ever make.