How I Make Money with My Couch
Did you know that I own a couch that I make money on?
No, I don’t rent it out, it isn’t a prop in a music video or anything of that sort.
I self-financed it with my life insurance policy (which I call my Sacred Account).
I’ve also done this with vehicles, personal development costs, marketing expenses and other large purchases as well.
Let me explain what I mean with the couch.
Most people will buy a couch one of two ways.
- They will pay cash for it (less likely)
- They will finance it or put it on a credit card (more likely)
The problem with #1 is that if I spend $3,000 on a couch set and pay cash, that $3,000 is gone forever and within a few years that couch will be worth 50% or less than what I paid for it. I’ve effectively done a magic trick where I turn $3,000 into less than $1500.
The problem with #2 is all of the same problems with #1, but it includes the fact that I am paying interest on that couch now. So not only did I turn $3,000 into less than $1500, but I also paid hundreds of dollars of interest for the privilege of doing so.
I used to think that with things like cars, couches, TV’s, etc. that there was no way to financially win. You’re either going to pay cash and lose money over time or you’re going to borrow money and have a payment and still lose money.
That was until I learned about The Sacred Account and how I could use it to become my own bank and self-finance these large purchases.
Here is the breakdown of how it works:
If I deposit $1000 into my Sacred Account, that $1,000 is going to grow at 3–5% per year on average, tax free for the rest of my life no matter what.
I can use 70–90% of that $1000, and the entire $1000 will still grow like it never left. This is possible because I am borrowing against my Sacred Account, so the actual money never leaves, I am just taking a loan against it.
I can then use that money to buy things, like a couch. My actual money is still in the Sacred Account growing while I use the funds for the couch.
I will then pay myself back, just like I would with an ordinary bank. Call it a couch payment if you will. Now why would I do this? Because I did borrow from myself, and I am literally being the bank in this transaction and banks never loan money out to those who can’t or won’t repay the loan. I need actually think like the bank here.
The result is that in a few years, my $1,000 is worth more than $1,000 because it was growing this whole time.
I still have the value of my couch, even though couches do lose value.
I had been repaying myself this whole time with my couch payment and have built up more money than I started with.
The alternative?
Pay cash and have a couch worth less than paid for.
Use a bank and have a couch worth less than paid for, plus interest paid on top of that.
This method of self-financing can be used to more than just couches.
It can be used for:
- Furniture
- Vehicles
- College
- Weddings
- Marketing expenses
- Personal development
- A boat
- Vacations
And anything else that is a larger than normal cost that you’d usually pay cash for or borrow money for.
If you want to learn more about how to do this, I want to offer you a free copy of my book The Blueprint to Financial Freedom!
Click here to order it!
You will learn about how to self finance large purchases, but also how to operate and think like a Bank and a Top 1%er with your finances!
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To Purpose, Wealth & Freedom,
Jerry Fetta
Jerry Fetta is the CEO and Founder of Wealth DynamX. He is a nationally recognized financial expert featured in Forbes, Yahoo Finance, Fox, Chicago Weekly News, New York Finance, interviewed on over 45 podcasts with world renowned experts, earning endorsements and affiliations throughout his career with names like Kevin O’Leary, Grant Cardone, Dave Ramsey, and Pamela Yellen.
Jerry’s mission in life is to help create millions of financially educated and solvent families achieving greater financial freedom and sharing the truth about money with those around them.
Learn more at www.WealthDynamX.com
(DISCLAIMER: The information in this content should not be considered tax, financial, investment, or any kind of professional advice. Only a professional diagnosis of your specific situation can determine which strategies are appropriate for your needs. Wealth DynamX can and does not provide advice unless/until engaged by you.)
