Breakaway Wealth: Episode 12 – There is nothing greater in finance than the constant compounding of our money, but keeping money in our checking or savings account prevents this effect. How do our accounts keep us from compounding? Why are permanent insurance contracts the solution to this?
On this episode, Steve Scollard shares why constant compounding and lost opportunity cost are the cornerstones of financial freedom.
“The uninterrupted compounding of money is what’s really important, especially over time.” -Steve Scollard
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Three Things We Learned from this Episode
- How our checking accounts get in the way of constant compounding
When we use a savings or checking account, we’re constantly putting money in and taking it out. Every time we take it out, we’re interrupting the compound.
- How Lost Opportunity Cost affects us financially
The moment we spend a dollar, we’ve lost the opportunity to make anything on that dollar. We can’t put it towards something that can make us more money.
- The beauty of life insurance contracts
Put money into a life insurance contract, and it’s going to grow uninterrupted. You’ll still have access to the money while it continues to grow. You also get the benefit of it being tax-free if you keep it permanently.
By bringing together life insurance contracts and tax-free benefits while saving money, amazing things can happen for us. You get the peace of mind of knowing that your money is saved, easy to access, and growing tax-free.