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Questioning convention…is there something else?

Written by Guest Post

If you haven’t noticed my writings are relatively heady and professorial. Much of that has to do with my personality, but more than anything else it stems from my desire to get people to think differently about their finances. To truly understand how the system works from the inside out. For my intentions to be successful a deeper level of intelligence has to be freed from the rules and restrictions of conventional practice. My goals can not be accomplished from a shallow approach or perspective.

This post is a bit longer than blog protocol suggests, but I believe you will have or be on your way to a clearer view of your financial surroundings once you are finished.

If you compare every debt guru/blogger/celebrity or financial advisor dispensing debt advice you will find one commonality: We are all on the same mission; to help improve people’s financial condition. Why are we different from all the others? The difference is our approach; unconventional vs. conventional. We’re coming from way out in left field. This is why our program and the strategy we teach have been deemed controversial and suspect. We are coming from the complete opposite end of the conventional spectrum. And because we are coming from an unknown galaxy of personal finance our program is widely misunderstood. It is invisible to the general public because it is not main stream…it comes from a place people are not familiar.

The Equity Optimization financial model we teach spins the consumer-bank relationship 180 degrees. What we teach is the epitome of unconventional and this is why the general population finds it too good to be true and even worse; a scam. People fear what they don’t understand. But when it comes to something as important as your finances fear or a lack of understanding should not stand in your way of a worthy investigation. A lack of understanding should actually motivate you to dig deeper. It shouldn’t scare you. If you really want to improve your financial condition isn’t it worth your best effort?

As far as your financial condition is concerned, it doesn’t matter how much you make, how much you owe or if you think you have the system wired; your financial condition is directly related to the model the banking industry taught us to use when we bank and borrow…the conventional model of banking and borrowing.

Think about that for a minute…the banking industry taught us how to bank and borrow.
Do you think they might have had an agenda?

What do we mean by the conventional model of banking and borrowing?
We are referring to ‘how’ we manage our financial lives via the current banking model.

How we bank: For the majority of us our net income is deposited into a checking account. From the available balance we distribute funds to creditors (mortgages, credit cards, anyone we owe), vendors (groceries, utilities, etc), and possibly various savings vehicles. Throughout the month the unused balance resides in the account awaiting the next withdrawal. What ever is left over at the end of the month; discretionary income, positive cash flow or surplus accumulates over time. And we repeat this process month-in and month-out year after year. Money in, money out without much regard for the balance beyond making sure there is a balance.

Sound familiar?

How we borrow: When it comes to our financed debt; the wisdom of the conventional model dictates we chase the lowest interest rate and lowest possible monthly payment…more importantly a monthly payment that fits within the confines of our pay check and the budget our lifestyles dictate. Under the conventional model of banking and borrowing this strategy provides the illusion of fiscal responsibility. The illusion is not categorically incorrect it’s just not entirely sufficient in its approach.

Obtaining the lowest interest rate and securing a manageable payment is fiscally wise, but to what end? A monthly payment you can count on for a good long time? Was that the original goal when you acquired the debt? The goal was to own a home, have a nice car or get an education. Is it safe to assume the original goal was not a manageable, fiscally responsible debt? What did the debt consist of besides a low interest rate and a manageable monthly payment? It came with a balance. The amount you borrowed (or owe if you have existing debt). The balance is the weight you feel around your neck. The balance is the anchor you drag around until it wear’s itself away.

Under the conventional model the outstanding balance is the most overlooked element of the debt equation, but it is the most crucial. The balance itself, no matter how long you’ve had the debt will always dictate interest costs and length of repayment. ALWAYS.

Monthly interest charges are calculated on the average daily balance. Under the conventional model interest will always be calculated on the highest possible balance each and every month. The reason; the principal portion of your monthly payment is so small the outstanding balance sees marginal reductions thus leaving the highest possible balance to calculate interest charges. The conventional model ensures the highest cost and lengthy repayment terms.

Balance is the villain in the debt game not the interest rate or monthly payment. An interest rate all by itself is nothing but a number. An interest rate can not produce an interest cost without a balance. Interest is calculated on the outstanding balance of the debt. And we know, or should know the lower the balance the lower the interest charges. That being the case, reduce the balance to reduce interest costs; we need to operate within a banking model that allows our income, our most important financial resource, the ability to attack and reduce that balance as low as it can go, for as long as possible to save the maximum amount of interest. The conventional model of banking and borrowing does not facilitate the application of this principal.

Our ‘conventional’ participation in the conventional model dictates the institution to be the primary benefactor of the model. Think about it; does a bank offer any product or service that doesn’t improve their bottom line? And what sort of return do we receive for our participation in improving their bottom line? The convenience of paying our bills and accessing cash should not be considered a financially measurable return. Are you recognizing a problem with what I am describing?

The conventional model itself has it own agenda…profit.

Keep in mind; the banking community is not being vilified here for running a very successful business model. More importantly, the goal is for you to pause and think differently, more holistically about the model where you currently operate. When you understand it from the inside-out you will realize how you can practice the same principles for yourself. When you do you; you will become the primary benefactor of your banking model.

The conventional model has its own agenda. Think about how efficient and profitable the conventional model is for the banks themselves. In the conventional banking model interest is being earned on every dollar we earn, own and spend? EVERY DOLLAR! Your debt…owned by a bank…is calculating and accumulating interest every day…the bank is earning interest on every dollar you owe every day. Your income…the balance in your checking and savings accounts is being traded in the stock market or being loaned to someone else every single day…earning interest for the bank…every single day. Every time you swipe your debit card the bank is earning a percentage of the sale…every single day on every sale. They are never, NOT earning money on just about every transaction we make. For every financial transaction you make someone else is making a buck…except you. It’s beautiful…if you’re the banker…and we’d all do it for ourselves if we could…if we knew how.

The conventional model is not really our model of banking and borrowing, it is actually their model and we are just critical participants in the success and profitability of their business model.

We don’t direct the model we are directed by the model.
Does that make sense?

At the end of the day, per individual financial goals; results are dictated by the model of operation. If you want better results you have to change the model. The disjointed relationship between your debt and your money is the foundation to the success of the conventional banking and borrowing model…their model…the conventional model of banking and borrowing.

It’s not about what you do; it’s about how you do it.

Are you starting to recognize the flaws in the current system? A system that you might be holding on to a little too tightly? Even if you think or have been told you’ve mastered the conventional model through conventional means, it is still and always will be a severely imbalanced relationship. It is this imbalance that produces imbalanced results.

Ok, so now what? What can you do differently? LEARN…learn something new.

To fully grasp and comprehend the gravity of Equity Optimization there must be affirmation that there is a problem with the current model and a new model will have to be installed if we want better results. In the research and discovery process there must be an inside-out approach to the investigation versus. an outside-in approach. We need to take a holistic approach and dissect all of the internal workings of the respective models to understand the results of each. From there we can make a qualified decision as to which model will produce the best results in an effort to reach our financial goals.

The Truth In Equity Optimization model dissects, amends and improves the conventional model. Equity Optimization ensures you are the primary benefactor of the banking model. The Equity Optimization model ensures your debt and your income are in continual communication. Equity Optimization ensures 100% of your income is working against debt and saving you interest 24/7. Equity Optimization is the most efficient model you can implement to pay off debt because your income is always working against debt instead of debt always working against your income.

With your completed Personal Profile we will perform an extensive analysis with you to help you gain a clear understanding of how this strategy works and how it can improve your financial condition. The analysis process is critical in making a qualified decision on whether or not this is the right model for your particular circumstance. Keep in mind; one size does not fit all and not everybody gets to join the TIE family. But no one can make that determination until a thorough examination of your Personal Profile has been performed.

The take away; if you’re going to dance with the devil (debt) wouldn’t you rather lead? If you want to improve your financial condition, whether it be paying off a mortgage or expediting your retirement goals, understand there are alternatives to how you bank and borrow. We’re just introducing you to an alternative you are not familiar with. If you are unhappy with the results of the conventional model then you have to be open to a new model. Your happiness may be counting on it.

Thank you for your interest. You are encouraged to take the time to talk with us and go thru the discovery process. At the very least you might learn something new. You will surely discover how an unconventional approach can out perform conventional results.

The Truth is in the Proof!

This article by Bill Westrom first appeared on and was distributed by the Personal Finance Syndication Network.

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