Friday Zoom Session – September 26

**Introduction to "Think Like a Banker"**

Jim began the session by introducing the idea of *thinking like a banker*. He encouraged participants to take notes and even capture screenshots, emphasizing that the material covered would be both detailed and valuable.

To illustrate the importance of understanding financial theory, Jim displayed a picture and asked the group to identify it. After some guesses, he revealed it was John Maynard Keynes, the father of modern economic theory. He explained the significance of Keynes’ views on government control of the money supply and inflation, showing how these ideas continue to shape financial systems today.

Jim stressed the importance of understanding how banking affects nearly every aspect of our lives. He referenced historical figures who warned about the dangers of allowing private banks to control the money supply. According to Jim, a “one in a million financial education” is necessary to truly grasp these concepts and use them to your advantage.

To make the lesson relatable, Jim used the example of a tea kettle. He explained how James Watt’s insight about harnessing steam power led to the Industrial Revolution. This served as an analogy for rethinking obvious financial concepts with fresh eyes. He warned about the danger of “lock-on”—becoming rigidly attached to certain beliefs or ideas—which prevents openness to new perspectives.

Jim also conducted an exercise where participants were asked to count the number of times the letter “F” appeared in a passage. The point of this activity was to show how people often miss obvious things when they are narrowly focused on a task or expectation.

He explained that the more you are able to view your financial life from a banker’s perspective, the more powerful the Infinite Banking Concept becomes. Understanding the motivations and mindset of a banker, rather than simply acting as a consumer, unlocks new levels of financial control.

Jim then introduced the four key players in the banking system: the bank owner, the banker, the saver or depositor, and the borrower. Each role has unique incentives, with the banker especially focused on minimizing risk and ensuring the continuous flow of money. He elaborated on how bankers approach lending, noting that they never use their own money. Instead, they rely on the borrower’s ability to repay and apply the “five C’s of lending,” transferring risk onto the borrower.

He outlined the four main ways banks create wealth: through arbitrage, transaction volume, fees and penalties, and by “velocitizing” money—repeatedly lending it out to accelerate cash flow. Jim emphasized that banks are far more focused on cash flow than on interest rates, which is a perspective individuals can learn from.

To close, Jim challenged the group to apply these principles to their own financial lives. He encouraged them to think beyond being just savers or borrowers and to occupy multiple roles—including banker—in order to maximize benefits. By learning to think like a banker, participants could begin to take control of their financial future rather than leaving that power in the hands of institutions.