In our modern economy, we are taught to focus on two things: interest rates and account balances. We hunt for the lowest rate on a car loan and the highest yield on a savings account.

But if you want to achieve true financial independence, you have to stop looking at the price of money and start looking at the flow of capital. This is the core of the Infinite Banking Concept®.

1. The Invisible Drain: Opportunity Cost

When you buy a car with cash, you might think you’ve "saved" money because you aren't paying interest to a bank.

The Banker’s Perspective: You didn't pay interest, but you gave up the interest that money could have earned for you for the rest of your life. This is called opportunity cost. A banker knows that every dollar spent is a dollar that stops working. By using the IBC model, you learn how to use your capital while it continues to grow uninterrupted.