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Velocity Banking Just Got Easier! The VANNtastic Vault Spreadsheet for a Line of Credit! — Transcript

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0:00Hello and welcome back to my channel. I
0:01am Christy Van with Fantastic Finances
0:04and on this channel I teach velocity
0:06banking. Today we are going to be
0:09showing you a presentation of the new
0:13debt blaster. This tool is going to help
0:16you to do your velocity strategy to the
0:20best efficiency possible. Now, I think
0:23that's pretty exciting because when I
0:25got started, sometimes it was guesswork,
0:27like, you know, how much do I take out
0:29of the line of credit to pay on to this
0:31loan, questions like that. And now we
0:34have the debt blaster that is going to
0:36show you what you need to be doing with
0:39your money and that line of credit. Now,
0:42that's super exciting. But what's even
0:44better is it's going to take the
0:46snowball method, the avalanche method,
0:48the infinite banking concept, and the
0:51velocity banking concept, and compare
0:54them and show you which one is going to
0:57work fastest with your numbers, your
1:00individual scenario. That's super
1:03exciting. And it's even going to show
1:05you what happens when you decide to mix
1:07up some of the concepts and use them
1:09together. So, this is going to explain a
1:12lot for you. I hope that it makes sense.
1:14I hope that you're super excited about
1:16it because now it's available for you to
1:19use. And that makes me very excited
1:22because now you have another tool to use
1:24that's going to make your debt
1:26elimination process go even faster.
1:29>> And so, with this debt blaster, you can
1:31load different types of profiles. So,
1:33imagine you're doing a what if. What if
1:35I had this debt? What if I got rid of
1:36this debt? What if I add my mortgage in?
1:38What if I take my mortgage out?
1:40Now, one of the things we want to do
1:42with with approaching debt, and let me
1:45just stop and ask a question. If you
1:47have third-party debts, could be student
1:50loans, could be personal loans, could be
1:53um let's say everything but mortgage, do
1:55you have car loans, do you have personal
1:56loans, do you have credit card debt? So,
1:58imagine if you could put all your debts
1:59in here. And what we want this tool to
2:02do and we what we also want to do as a
2:04group is we want to meet you where you
2:05are. you may not have the cash flow or
2:09the resources right now to move into a
2:12velocity banking or infinite banking.
2:13So, step one is let's get your debts
2:17classified and organized so we know what
2:19we have. We have a personal credit card
2:21at 2500 at 24.9% interest we're paying
2:24$75 a month on. And we just go through
2:27and we list all of our debts. So, that's
2:29really step one. And so for this
2:32particular debt strategy, we have
2:34$78,400
2:35of debt, an average rate of about $8.67,
2:39and then we're paying about 1265
2:42in payments on this debt. Now, before I
2:45scroll down, have you heard of things
2:49like snowball, avalanche, cash flow
2:51index? In what we call this debt blaster
2:54trifecta, the first step is to figure
2:57out for this $78,400
3:00of debt,
3:02what is the most efficient,
3:04mathematically efficient way of paying
3:06those debts down? Now, if we do nothing,
3:09which is called the no strategy
3:11strategy, and if you're doing the no
3:13strategy strategy, there's a better
3:15thing you could do. Now, what do I mean
3:17by no strategy? Let's go up to these
3:19debts.
3:20You might know of people I've seen I've
3:22seen this behavior where they have a
3:24bunch of debts and then they get, you
3:26know, maybe a bonus and think, "Well,
3:28let me just throw that at my personal
3:30loans, so I'm going to throw $1,000 at
3:32my personal loan." Or maybe they
3:34refinance or shift over to 0% cards or
3:36there's all these different things we
3:38can do, but we're still stuck in this
3:41trap of being in debt and we just like
3:43no matter what we do, we just can't get
3:45out of it. But one of the worst things I
3:47see is when people pay a debt off. Let's
3:50say you pay this personal credit card
3:52off at $2,500.
3:54You were paying $75 a month. What do
3:57most people do with that $75? Do they
4:00use it to help pay down other debts or
4:02do they go out to eat more often? Do
4:04they buy more stuff? Yeah, Kimmy.
4:06Exactly. They spend it.
4:08That's what I mean by the no strategy
4:11strategy. And if you had those debts, it
4:14would take you $181 months to pay off
4:16all of the debts
4:19on that $78,000
4:22$78,400
4:24of debt. You would pay $30,000 of
4:26interest.
4:28I I don't know if you want to pay that,
4:30but I certainly don't. So, the first
4:32step is what is the next best thing we
4:34can do? We can put our debts into a
4:35snowball, which is organizing them in
4:38lowest balance to highest balance. And
4:41and what you're going to do is be
4:42disciplined here where when a when a
4:44particular debt's paid off, you're going
4:45to put that towards the next debt. And
4:47you're just going to keep doing that
4:48until they're all gone. So debt
4:50snowball, there's some benefits to doing
4:52that because you're getting some quick
4:54wins. You're paying off those lower uh
4:56balance debts. You're kind of getting
4:58some energy. I'm like, "Yeah, I paid a
4:59debt or two off." But it's not always
5:01the most mathematically um efficient
5:04one. You're still paying them off in 81
5:06months, paying a total of $22,875
5:09in interest.
5:10The debt avalanche structures your debts
5:13in highest interest rate to lowest. I
5:15would say most cases that I see this is
5:18the most efficient mathematically. It
5:20oftent times you're going to have some
5:22delayed gratification because you might
5:24have a big debt out there with a big
5:26interest rate that takes you a long time
5:27to pay off. So you're not going to get
5:29that instant gratification. But
5:31mathematically it's oftent times the
5:33most efficient. And then there's the
5:36cash flow index. And that's a
5:38methodology where you're looking at a
5:40ratio of the balance to the payment and
5:42you're coming up with an efficiency
5:43score. So of these three different
5:46methodologies, what we're trying to do
5:47just out of the gate is say if you at
5:50least went from the no strategy strategy
5:52to the debt avalanche, you're going to
5:54be carving off a significant amount of
5:56time and you're going to be saving some
5:58interest. So that's step number one. So
6:01now now that we have our payoff
6:03strategy, what we're going to do is go
6:05down to the payment table.
6:07And in the payment table, you're
6:10essentially going to see what is the
6:12month, what is the payment I need to
6:14make, and what, you know, how much do I
6:16pay to each debt. So, this debt gets
6:18$75, this debt gets $125, this gets
6:21$180. At the conclusion of that month,
6:23and I've paid all those debts, I mark it
6:25off and it checks it out. So, I just
6:27know month by month what I need to be
6:29paying. Now, you might be saying, "Well,
6:31what if I have some extra money?" Okay.
6:33Well, let's go up here and say, "Yeah,
6:35I've got uh, you know, I just received
6:38um $2,500 in a bonus. I'm not quite sure
6:41what to do with it." So, you put it in
6:44here and then it just gets allocated.
6:46And you'll see that your time just
6:47decreased. Your interest cost just
6:49decreased. And it's going to use that
6:52pile of money and kind of make bigger
6:54chunks towards that personal credit card
6:56because that was the thing at the top of
6:57the list. So, this is pretty cool. But a
7:01lot of us here are very familiar with
7:04velocity banking. And I'm just going to
7:06make the assumption that everybody has a
7:08pretty firm grasp of what velocity
7:11banking is. But for those of you that
7:13have filled out Christiey's worksheet
7:15where you go through and you put your
7:16income in, you put your expenses, you
7:18put your velocity banking tools, what we
7:21did with with in conjunction with
7:23Christie is we said, "Well, why don't we
7:24just put that into the into the vault so
7:27you can just come in and go tab by tab,
7:29add your income, come in, add your
7:32expenses, which ones can I pay with a
7:34credit card, which ones can't I pay with
7:35a credit card, and then at the end of
7:37the day, what are my different velocity
7:39banking tools?" So, I have an all-in-one
7:41here from North Point uh with about
7:44183,000 of of available credit. That may
7:48be different for you. You might have a
7:50Wells Fargo heliloc. You might have a a
7:52personal line of credit at Bank of
7:53America. So, all of this is going to
7:56depend on what your situation is. And
7:59Will, I I agree. I mean, I I'm a I'm an
8:02Excel sheet guy, and a lot of this stuff
8:04comes from the Excel sheets that we just
8:06built into software. We got a really
8:08sharp software guy that just took all
8:10that stuff, took the models and started
8:11building this out. But yeah, I love I
8:14love spreadsheets, but you know, we want
8:15to get the power of this into the
8:17people's fingers that don't don't have
8:18spreadsheet powers. Um, so now here's
8:22what happens.
8:24You have your income 7293. Let's say
8:26that's your income. You have some
8:28expenses at household, automobile,
8:30living expenses, and business expenses.
8:33And what we're going to do is come up
8:34with your cash flow income minus your
8:37expenses, but then we also have some
8:38debt payments. So, let's just say that
8:41you have $59,1.33
8:44of cash flow that we can use for
8:46velocity banking to run into our
8:48velocity banking tool. So, here's the
8:49beauty of it. You can come down and pick
8:52your velocity banking tool. I've only
8:54enabled this North Point. And so what
8:56we're going to use is this North Point
8:59line of credit has $183,000
9:02available. But what we found playing
9:04with numbers is that we oftent times if
9:07you take a bigger chunk, it's going to
9:09sometimes slow down your your whole
9:11payown structure because you take a big
9:14chunk and then you just spend all this
9:15time paying that back and you're not
9:18really making progress on chunking your
9:19debts.
9:21So what we do as a step one is we say
9:23why don't we take about two times your
9:24income. So if it's 7293,
9:27we'll use chunks of about 14,587.
9:31But what you do is you activate the
9:33velocity banking boost towards your
9:35debts. So we just activated using
9:38velocity banking for our debts. And then
9:41when we come down and we look at our our
9:44strategy table, we now see our no
9:46strategy, which we've already discussed.
9:48We looked at our debt avalanche, which
9:50is bringing efficiency into our debt
9:52model. Velocity banking is speed.
9:55There's just nothing that beats velocity
9:57banking for speed. So, it just blows me
10:00away every time I run these numbers
10:01because if you're just out there doing
10:03the normal thing, it's 181 months,
10:06$30,000 of of interest paid to others.
10:10Velocity Banking, you're done in 23
10:12months with all of that debt. You're
10:13done. You used your line of credit,
10:15$14,000 chunks, and you restored that
10:17line of credit all in 23 months. your
10:20interest paid instead of 30,000 is now
10:235124.
10:25So every time I've showed this to
10:26somebody like why wouldn't I do this?
10:28Exactly. Why wouldn't you do this? Why
10:30wouldn't you do the velocity banking?
10:32The hurdle I sometimes hear is well I'm
10:35not quite sure when to take money out of
10:36this or when to move it here. And so we
10:39go back down to our payment table.
10:42And this is where we simply just have a
10:45prescription of your payment for month
10:48one is going to be 16,443
10:51because we're taking a $14,587
10:54chunk out of our velocity banking tool.
10:57And we're going to spread it around.
11:00We're going to pay off that personal
11:01credit card immediately. We're going to
11:03pay off the business credit card
11:05immediately. We're going to pay off the
11:07personal loan immediately and then we're
11:09going to take the remainder and just
11:10sprinkle it around to the medical debt.
11:13Everything else gets its regular
11:14payment.
11:16So then we pay all that month one. We
11:19check it off. We're going to spend the
11:21next one, two, three, four, five months
11:24filling up our velocity banking tool
11:26before we take another chunk. And we're
11:29just going to keep doing this. I mean,
11:30it's all right here. It tells you
11:31exactly what to to make for your
11:33payments month by month by month.
11:35Now, at some point, we're going to be
11:38done with every single debt. We're done.
11:41And because we took our last chunk back
11:43at month 15, we now spent some time
11:46refilling that all-in-one to where it's
11:50fully restored in terms of the line of
11:51credit. So, let me just ask you, do you
11:54think that you could set up velocity
11:56banking, give your debts the boost, and
12:00just follow this as a prescription?
12:01Because that's what we're trying to make
12:03is just clickity clickity. Just do it.
12:05When you're done with month two, move
12:06on.
12:08Now,
12:10we've talked about two steps. I I've
12:12mentioned this thing called a debt
12:14blaster trifecta. So, there must be
12:16three things here. The first thing is
12:19efficiency with our avalanche. The
12:20second thing is velocity banking with
12:22speed. Now, what we've been able to do
12:26with both of these strategies is get you
12:27out of debt faster. But where we are
12:30from a wealth building perspective is at
12:32zero, right? We haven't really built
12:34wealth. We've been way more efficient in
12:37paying our debts off and paying less
12:38interest to everybody else. But what if
12:41we could slow down velocity banking a
12:43little bit? I'm going to ask a question.
12:45Would you be willing to take a few
12:46months longer to pay your debts off, but
12:49have some wealth at the end of that debt
12:50cycle? Here's how we do it. We're going
12:53to leave our velocity banking on. And
12:55just so you know, out of this 593,
12:59I've already put in living expenses that
13:01we're setting up a life insurance policy
13:03with the Be Your Own Banker team, and
13:06we're going to put $775.
13:08So, I already put this into our budget.
13:11So, our cash flow, if I take that out,
13:13we're going to speed up our infinite
13:14banking a little bit, but I've already
13:16I've already used the 775 in my cash
13:20flow.
13:22So now what we're going to do is go into
13:24infinite banking. Think of these
13:26policies almost like a custom suit. You
13:29come into our shop. We're going to
13:30measure your inseam. We're going to
13:31measure your waist, your chest. We're
13:33going to build you a suit that fits.
13:36We're going to build you a policy that
13:38fits what your cash flow looks like,
13:40what your resources look like, and and
13:43we're going to build that. And it's
13:45going to be a specially engineered
13:46design policy just for you.
13:48Let's just say that I have a policy
13:51where I put a $30,000 dump in. And when
13:53you dump in that 30,000 or whether
13:55it's$10,000 or 5,000 or 2,000 or
13:58100,000,
14:00you have access to that. And this is
14:02where a lot of people in the industry
14:04come and say, "Well, I thought it took 3
14:05to 5 years before you get any money
14:07out." Imagine you put $100,000 in a dump
14:11in or 50 or 30, it doesn't matter. You
14:13have access to 90% of that within the
14:15first 30 days. So, I dump in 30. I'm
14:18pulling out 27 at least within the first
14:2130 days. So, when people say, "Hey, I've
14:23got this big chunk of money and I want
14:24to pay my debts off." Put the brakes on,
14:27folks. We want to run that through our
14:28policy so it compounds and grows the
14:29rest of our life. And why would we do
14:31that? Uninterrupted compound interest
14:33running for the rest of your life. What
14:35does that 30,000 look like in year 2,
14:38three, four, five, six? Now, it just
14:40keeps getting bigger and bigger. So,
14:41that's why we want to run the money
14:43through the policy before we pay off the
14:45debts. pay the debts off and be an
14:47honest banker in those same remember how
14:49much we were paying to our debts $1265.
14:52So when we're done paying these debts,
14:54guess how much guess how much we're
14:56paying back to our own banking system?
14:571265. Now do you have to? No. But if you
15:01are already paying that and your cash
15:03flow is already set up to do that, just
15:05keep it going. All right. So we have a
15:06policy. We dumped in $30,000. We have
15:09$775 a month already going in. It's
15:11already taken out of our our cash flow
15:13and our budget. So, we've already done a
15:16velocity banking boost. Now, what we're
15:19going to do is a cash value boost. We're
15:21going to utilize the cash value in our
15:24policy. Throw that on top of the mix.
15:27This is where the trifecta comes in.
15:31We now have the no strategy compared to
15:34just the debt avalanche to doing
15:37infinite banking. Now, if you look at
15:38infinite banking, it's going to take 30
15:40months. And this is just infinite
15:42banking by itself. If you do that, it'll
15:45take 30 months to wipe out all those
15:47debts. And then in the next 46 months,
15:49we're going to pay back the policy at
15:51that 1265.
15:53Now, there's something really powerful
15:55that happened between this after the
15:5831st month. After the 31st month, you've
16:01moved that debt into the policy. It's no
16:03longer on your credit report. It's no
16:05longer public. If you don't pay your car
16:08loan back to your own bank, no one's
16:09going to repossess your car. So what
16:13happens between these two lines is
16:15you're now in full control.
16:17You're you're the one that sets the
16:19payments. You're the one that pays it
16:21faster or slower. It's all up to you.
16:23But if you continue that 1265, it'll
16:25takes 46 months.
16:27So does everybody understand the power
16:30of getting your debts into your own
16:32system so that you don't have them on
16:35your credit report? They're not part of
16:37your It's just not part of your life
16:40publicly. It's now in your own banking
16:42system.
16:44So, we're not looking at saving a lot of
16:46time here necessarily between just doing
16:48the debt avalanche. It's still 76
16:50months. But here's the big difference.
16:52Did we save interest? Yes, our interest
16:55is 12,910.
16:58And that's way better than 30. But look
17:01what happens at the end of that 76
17:03months. You have over $90,000
17:05in your policy. You have over a half a
17:08million of death benefit.
17:10So there's your legacy or if something
17:12happens to you in this whole process,
17:14your your policy will accelerate
17:16everything and then death benefit.
17:18So now let's look at what happens when
17:21we bolt on infinite banking, the debt
17:24avalanche and velocity banking. This is
17:25this last column called the debt blaster
17:27trifecta.
17:29You didn't really slow velocity banking
17:31down. Sometimes you do. Sometimes I see
17:33this get extended a few months. But in
17:35this case, instead of, you know, paying
17:38everything off in 21 months, we did it
17:41in 11, but now we have 10 months to pay
17:43our policy back, two months to pay our
17:45velocity banking tool. So we're still
17:47around 23 months.
17:49But here's why we say efficiency for
17:52debt avalanche, wealth building for
17:54infinite banking, and velocity banking
17:56is all about speed. We got the job done
17:59fast, efficiently with the trifecta. But
18:01if we look at month 23, we now have
18:03$43,000 of cash value in our policy and
18:08we still have a death benefit over a
18:09half a million. And the interest we end
18:12up paying is not 30,000 but 2400.
18:19So this is the devil trifecta. Now it
18:22starts to get a little more comp
18:24complicated because now we have a pile
18:26of money we need to take out of our
18:27infinite banking system. we have a pile
18:29of money we need to take out of our
18:30velocity banking system and the at the
18:33end of the day we have to go back down
18:36to our payment table and just see how
18:37the numbers pan out because
18:41what you'll notice is when we start our
18:43policy we need at least 30 days before
18:44we can pull money out. So in the first
18:47in the next month we're going to pull
18:48out $28,291
18:52and we're going to spread that across
18:53the debts. Month one, we're pulling out
18:56this 14,587.
18:59So you'll look over here, 16,000 gets
19:01applied to debts and then 30 and then we
19:03go back into fill it up mode. And you'll
19:06start to see over here in this extra
19:08column as we collapse debts, this is the
19:11amount that continues to roll from
19:13previous debt payments. And eventually
19:15this will get down to the 1265.
19:18But the thing you want to pay attention
19:19to is what are my what are my payments
19:23that I'm making per month and to which
19:26debts do they go to?
19:30And so if you can just follow this as
19:32your your guide, it'll tell you exactly
19:35my medical debt gets 193, everything
19:37else got collapsed and then 420 and look
19:40at that big chunk that goes towards a
19:42car loan to you know pay that off in
19:43month two.
19:46So, we continue on and then there's a
19:49lot of questions about, oh, when do we
19:51pay our policy loans back? Well, we
19:53start paying our policy loans back after
19:55all of our third parties debt is gone
19:57and then we start using our velocity
19:59banking to pay the policy down faster
20:02and then we pay our line of credit back.
20:05So, it's third party debts. We get rid
20:08of those. We then pay our policy back.
20:11That's fully restored. And then we
20:13restore our line of credit. And guess
20:16what you're ready for now? You're ready
20:18for additional wealth building. Because
20:20if we go back up to this table,
20:23you not only have $43,000 of cash value
20:26to use, you also have $1856 of cash flow
20:30that is now available to use for
20:32something other than debts.
20:35So, welcome to the debt blaster
20:36trifecta. That's that's essentially what
20:38we've been working on. And you know now
20:42we want you to all benefit from running
20:44your own numbers, managing your own
20:47systems, asking you know Chris and
20:49Christy different questions.
20:52So what did you think about it? Do you
20:54feel like that it's going to be
20:56something that you can use? I hope so.
20:59The idea was to give you another tool
21:01that you're going to be able to use that
21:03is really really going to help you in
21:06your velocity journey. I'm excited to
21:08share it with you and I'm forever
21:10grateful to Chris and team for working
21:12on this and developing such a fine tool
21:15that's going to make a difference. I'm
21:17going to have a link in the description
21:19below this video where you could go
21:21check it out for yourself. Remember,
21:23it's the debt blaster and Christy AI is
21:26in there as well. And comment below
21:29because I would like to hear what you
21:31think about this new software. It's a
21:34super simple and super cheap way to
21:37maximize your velocity journey.

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