DON'T KEEP YOUR MONEY IN THE BANK | Prince Donnell

ladies and gentlemen do not keep all of your money in the bank I know this may not come as a surprise to many but for some of you who don't understand how Banking and investing works I want to break this down for you today so you can make better financial decisions before that what's up y'all I'm Prince Darnell founder of the jumping jack Tax Franchise and welcome to my page we're currently at 95 000 subscribers it's been a long journey thus far over these past six months since fully going into this YouTube channel and providing you with so much education and knowledge thank you for following me across this uh this time and for those of you that are not subscribed Please Subscribe please watch back all of the previous videos and the knowledge that we give on taxes LLCs s Corps the bank accounts that you're going to need different Financial topics around taxes and life insurance in with that owning a franchise a tax franchise if you need taxes done personal and business life insurance bookkeeping tax planning if you need any of these Services we can assist you one of our financial professionals can help text info the 267-792-0185 again info to 267-792-0185 with that said let's jump right into it don't keep all your money in the bank a few reasons why I say this but I want to start off by giving you guys a little bit of history about me I've worked in banking since I was 18 years old I started off at a small bank called Republic Bank that's where I got my first uh experience in banking I started off as a bank teller for those who don't know I know how to count cash really fast because I used to have to do it at the bank as a teller and uh from a bank teller I moved over to TD Bank where I became a banker where I'm opening up bank accounts talking to clients about credit cards and Etc and then I actually became a Financial Services representative what's called an FSR and I actually got licensed and I got my life accident a health insurance license where I was selling life insurance through the bank and annuity so for those that didn't know that Banks offer life insurance and annuities absolutely it's a huge driver of their profitability they just don't Market it to the public because what's being marketed to you is a checking account a free checking account that you walk into open this free checking account up and then the profitability begins from there after you deposit your money which we'll talk about in a second but my job also was to offer additional services to you after you open up your account where hey you know life insurance annuities and different things depending upon the amount of money that you had inside of the bank right and then from TD Bank I moved over to Wells Fargo where I did the same thing um had my license and I was talking to customers about different investment options and insurance and annuities and Etc um before I actually twist you know moved into entrepreneurship and now uh starting a franchise here with jumping jack tax so with that I've seen a lot on the banking side and I think it's important that uh you you understand some of the history of what happens when you actually put your money into the bank and the reason why I say don't uh don't keep all of your cash in the bank um it's because of the fact that for one and I want all of you guys to look this up is that there's a certain thing called fractional Reserve banking okay and with fractional Reserve banking is is basically a bank is required to keep a certain percentage of your deposits and savings they're only required to keep a certain percentage of that on hand at the time that was ten percent so just to break it down if you were to give the bank ten thousand dollars in cash your money and you gave it to the bank they're only required to keep a thousand dollars on hand ten percent the other nine thousand AKA ninety percent of that money they are now reinvesting that money into providing loans real estate loans commercial and Consumer loans and they may even be investing into projects that you don't even agree with that aren't even a part of your beliefs but you have no say because of the fact that you gave the money to the bank to allow them the opportunity to do whatever they would like to do with the money so that they can make profit and in return they'll give you a very very very very very small percentage of the profit that they made from the money that you lent to them okay so we got to understand that concept before you get an understanding of why putting your money all of your money into the bank is not a smart thing fractional Reserve Banking and just so you guys also know the Federal Reserve uh during the pandemic they actually dropped that Reserve from 10 to zero so technically speaking as of today as we as we're talking about this is 2021 if you were to give ten thousand dollars to the bank they're technically not required to keep any of that cash on hand now I know what you're probably saying well done but when I look into my online banking I see the money there and that's available that's called digital currency so that that number that you see in your online banking that's digital that's the that's the liability that the bank has to you if you ever decide to pull out your cash it's a liability right if you had ten thousand in the bank and let's say a fifteen twenty thousand other people had ten thousand in the bank let's say everybody decided to come together and say hey we all want to withdraw our cash from this very specific bank at the same time it would make the bank collapse because they don't have all of that cash on hand it's invested all of the uh the banks that that are being opened the the the staff the marble floors that's where your money's going okay um when you when you leave all of the all that cash into the in the bank and you're getting close to nothing if not zero because they're marketing to you that you can open up a free checking account right hey get a savings account with 0.01 interest right but your money is completely safe let's switch that mindset here and this is the point of this video switch your mindset from the fact that banks are the safest thing in the world because there are a ton of other opportunities that are out there that are just as safe if not safer that you can put your money into and get a much higher return it's important to note that you're not going to be able to grow your your ass you're not gonna be able to grow your wealth your net worth unless you're actually number one producing more money than inflation right so if inflation is coming around three to four percent a year year you actually have to be netting five or higher just to be inflation which is like an invisible tax just to beat the inflation so that you can actually be earning income and for those who don't know what inflation is just to go back and break it down inflation is is the cost of products and services and goods and cost of living Etc that's increasing every single year it's an invisible tax that increases the cost you ever notice how a bag of chips was 50 Cent and now the bag of chips is now a dollar right that's inflation that goes up over time naturally and if your money is not actually increasing with inflation then you'll have the same 10 000 but it may only be worth ninety eight hundred dollars in purchasing power so you're you're technically losing money in real world value but you have the same Dollar on on paper right but real world value it's not the same so we have to switch our mindsets around that if we want to be able to grow we have to become the bank we have to become the bank now that's the point of this video the goal is for you to become the bank and not keep all of your money in the bank when they're not doing anything for you they're lending it out to people who are using these opportunities to make more money your goal should be to use the bank for what it's for I should have three to six months minimum of emergency expenses saved and I'll have that sitting inside of the bank because I don't plan to ever do anything with that money I need it for worst case scenarios which I'm a big believer in having a reserve the same way that the bank was supposed to keep 10 percent of your money in a reserve if you ever needed the the funds the same way you should be keeping a certain percentage of your money on a reserve on hand in cash and available to you at any time if you ever need it that's the that that's what you're using that bank for right and if you have a phenomenal credit then you could also use the bank for leverage as lending opportunities if you decide to take that route but you should only be using a bank for which you absolutely need it for which is emergency funding right and now as we move forward how do you actually become the bank which is the real solution here well first thing first Banks know where their money is going they know where their money is Flowing they audit they audit their money when I worked at the bank as a teller I had to order my drawer every day and if I was even under a penny I could almost lose my job they needed to know where every single dollar was going every second of the day so starting with number one if you want to become your own bank you need to audit your finances on a daily basis the same way that as a bank teller I had to audit my drawer at the end of every day to make sure it balanced you need to be auditing your finances every day to ensure that it balances do you know where your money is going do you know what's on your bank statements do you know how much you're spending in food in a gas and entertainment and and rent do you have these percentages broken down because if you don't you're not operating like a bank you're just allowing your money to free flow and for everybody to profit off of you and you're never going to be able to move forward if you don't have a clear plan set forth for how you want to have your finances and what percentages that you're going to be spending um in each category so step number one the most basic thing to do is sit down tonight audit your finances and say okay where is my money going and start making tweaks so that you can now start cutting calls so you could keep more money to you more money that you need for opportunity now that we are now auditing ourselves and we're treating ourselves like a banking auditing right step number two is you need to learn the basics of investing right we know if we if we just talked about this earlier we know that banks are using 90 of your money well 100 as of today 90 to 100 of your money and they're reinvesting your money and they're they're putting it out into opportunity so that they can earn profit you got to be doing the same thing with your money as well so you need to learn the basis of investing now how can you learn the basics of investing where there are two different ways two ways that I learned number one uh reading reading is fundamental that is going to be the first step for you to build a solid foundation two books that I would suggest Rich Dad Poor Dad and money Master the game by Tony Robbins Rich Dad Poor Dad by Robert Kiyosaki money Master the game by Tony Robbins these two books have created a solid foundation for me amongst other books but they taught me the basics of how money flows the basics of investing and why it's important and through you doing that reading you're going to be able to enhance your knowledge and your comfortability around investing so that you understand that it's not a scary thing that I word is not scary it's only scary the people who read the news and a lot of the propaganda that's that's given to you about how people invest their money and they lose so much money and everybody goes bankrupt right that's not the case for a large majority of people who understand what they're doing the same way that at your job you know exactly what your task is you know the process you know the procedure but when you first got to the job you didn't know anything it was scary but as you started to understand and know it you're like oh I know what I'm doing you're not able to just clock in and just do your job clock right out same thing with investing imagine if you have the ability to clock into your investing your investing job right and then you're going in you're doing what you need to do put it into the right opportunities then you clock out same thing but it takes time for you to learn your process so start reading from from some of the greats and the next thing beyond that is after you understand the the solid foundation of investing the next thing is start getting your feet wet there's no better way to understand how to invest your money without actually investing your money you got to start putting it into opportunities and you need to start seeing how the market works so one of my favorite investors is Ian Dunlap the master investor y'all should follow him on Instagram he says something very profound you should not even start trading in the market until you made like a few thousand paper trades meaning that you're just going into you're you're going into your brokerage account and you're doing dummy trades with paper money and you're moving with scenarios so that you can get a better understanding of how investing works you can learn from your mistakes without actually losing real money and you can learn from your successes and you're able to develop a process remember what we talked about right the same way that you clock into your job and you have to learn that process now to where you feel comfortable at your gig of clocking in and clocking out and doing your job the best invisibility you should treat it the same way with investing right that first two three week month trial period paper trading and learning your process so then when it's time to go live and you're putting real money into it now you're able to make better decisions because you learn from the mistakes when you were in the training phase so I thought that was phenomenal what he's teaching there around practicing first before you actually go live but that's important and you have to actually get your feet wet you have to start investing because listen we know that the banks are not going to do it for you the banks will give you 0.01 in interest and that's important so those three things in in themselves are going to help you to grow further than where you currently are today right and by understanding how the banks work you're able to create a better scenario for you and your money more importantly as well here's another here's just another hack and and this is not something that I'll elaborate on in the video is that you know I don't even use debit cards anymore I don't use debit cards I only use credit cards I have the cash necessary to be able to pay my credit card immediately but I use credit cards and why because the credit cards provide me with Reward Points the credit cards provide me with uh with with cash back these are all things your debit card are not doing for you so by using my credit card getting rewards which are going to give me free uh free amenities and then also getting cash back which I was able to just get cash back for like two like two grand that I was able to pick to literally pay down my my actual credit card from the cash that I received back from all my purchases yo I'm basically making getting purchases for free now you can't do that with a debit card so there's so many uh there's so many downsides to that so the point of this video was use the bank for what it's supposed to be used for emergency purposes um and if I ever need the funds for whatever reason but any all of our money outside at that point should be going towards aggressively investing my money and having a percentage of that also paying down debt if necessary but I need to be aggressively growing my money if I want to increase my net worth and I need to continue to keep buying assets the same way that the bank is buying those assets with your money without your permission without your approve well technically you did give permission to prove when you open up the account but in in in your sense without permission without approval and into things that you don't even agree with so do not keep all of your money in the bank ladies and gentlemen only what you need invest the rest pay down some debt with the rest and start living free with that said again Prince Darnell I'm the founder of jumping jack Tax Franchise stay tuned for the next video as we keep breaking down Financial topics again if you need any of the financial services that I talked about from taxes life insurance bookkeeping tax planning and Etc tax info to 267-792-0185 and also watch some of the previous videos as well where we talked about LLC versus S Corp the Five bank accounts you need to open up your uh your LLC with the things you don't know about an LLC uh how to pay yourself so many different videos and so much knowledge and information please plug in this information is free and I'll see y'all next video peace

Channel: Prince Donnell

Views: 1,638,993

Keywords: prince donnell, jumping jack taxes, curlbible, devotion beard, saving money, how to save, how banks work, money in the bank, investments, forex, mutli level marketing, trade, stocks, buy property, real estate

Id: FOSKt-mt1Yg

Length: 16min 48sec (1008 seconds)

Published: Mon Oct 04 2021