Becoming Your Own Banker: Unlock the Infinite Banking Concept (Book Review)

Dividends Forever
7 min readAug 28

The very first principle that must be understood is that you finance everything that you buy — you either pay interest to someone else or you give up interest you could have earned otherwise. The alternate use of money must always be reckoned with. Some call this “opportunity cost.” But, it is amazing how people give lip-service to this fact but do not put it into practice in their own financial dealings — the equivalent of thinking that the law of gravity applies to everyone else but them.

— R. Nelson Nash, Becoming Your Own Banker

Infinite Banking. It’s a controversial subject. Some claim it’s a scam. Others say it’s the greatest financial instrument ever created.

R. Nelson Nash pioneered this idea in his book Becoming Your Own Banker: Unlock the Infinite Banking Concept. And in today’s article, we’ll look at what Infinite Banking is, and how it works.

What Is The Infinite Banking Concept?

[I]t will help if you understand what is meant by the word “co-generation.” It is a term used in the production of electrical power. As most everyone knows electrical power is produced in plants using fossil fuels (coal and petroleum products), nuclear fuels or water to turn turbines. But there is another source of electrical power that is significant — the wood-products plants — sawmills and paper mills. Trees are harvested for the wood they contain but the bark on the outside of the tree and the sawdust from sawing lumber has little economic value, but they make a…

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