Why do people trust a bank with their money? This is a question you will hear if you attend one of Factum Financial’s excellent interactive workshops. Yet it’s one of those questions that causes people to clam up and choose not answer. Why is that? Is it because the answer feels too simple or is the answer more complex?
A lot of people put their money in a bank or use the banks money for their major purchases because “that’s just the way everyone does it.” Banks are everywhere and almost everyone uses a bank or at least has a bank account at some point in their life. In fact, a banking institution is probably as American a fixture as a 711 or a Walmart and you can probably find one of each in any town across the country.
So why do people trust banks? It’s what we do because whoever taught us to save did the same thing. A bank account is a status symbol, a step forward for the impoverished, or even a sign of maturity for young people. Maybe we are asking the question with the wrong emphasis. Perhaps we should ask: Why do people trust a bank with their money?
How Our Trust Is Undervalued
Imagine that you pay a person to protect you. You see the advantage of their existence and you offer them a certain amount of money to keep you safe and ensure that you accomplish your goals. Then imagine that this person starts charging you for living in your house, charging you double for providing for your family, and imposing cancellation or early termination charges on you if you want to stop employing them. They propose that you wouldn’t be able to accomplish anything safely without their existence and you know you need their protection but you start wondering how much you could accomplish on your own if they weren’t always charging you exponentially more for wanting to live your life. Then imagine this: in the moment when you need them most, they get bailed out by their buddies with their pockets stuffed with your dough and you’re left fending for yourself.
This is a super simple scenario that models how some banks treat their customers. An institution that’s designed to protect your money and help it grow with interest ends up charging you on your hard earned money whether you let it sit or spend it. And if you need to use their money for your most vital purchases, you have to jump through their hoops to prove you are worthy and then they charge you exorbitant interest on a loan, sometimes accruing a massive profit over the life of a single loan. Given that almost everyone uses banks, how much profit are they making off of average citizens everyday? Again, why do people trust a bank?
The answer that we like here at Factum Financial is that they are convenient. They have a structure for moving and storing money safely already put in place. In that regard, we are big fans of banks. However, when it comes to your banking choices, how you use your money, and how you grow it, the bank might not be your best option. The good news: there are other ways to save out there!
If you are feeling disillusioned with the traditional banking system, we understand. We know that the current financial system is broken and yet people continue to get taken advantage of by the banks and the financial “professionals” on Wall Street. At Factum Financial we want to give you the tools to break out the banking system and bank for yourself. We want to introduce you to the Infinite Banking Concept.
How much could your life change if you didn’t have to rely on the bank to make purchases or pay off your debts? What could you do with the control of the banking function in your hands?
Contact a Wealth Strategist with Factum Financial today to change your financial future. Schedule your free 30 minute wealth strategy session today.
You can read the previous blog post by clicking here.