I recently had a client reach out with a question I frequently receive from people who are just starting their Infinite Banking journey. I love fieldin

So here was the question: “Hey Dave. My truck is in the shop and the bill is $2,100. Would it make more sense to use a policy loan, or just pay the bill with the cash I have?”

This is such a great question and one that shows that this client is really starting to think like a banker. Many of you have asked me the same question and perhaps many of you have had that question but didn’t want to ask it. In either case, here are the questions I would ask you in response:

  1. Have you fully funded your entire premium for the year?

If you have not fully funded your premium, you first want to check to see if there is any way you can apply those funds towards your premium before you use them for that truck expense, as in this example. If you have not funded all of your Paid Up Additions (PUA or sometimes called ALIR, depending on what company your policy is with) for the year, I recommend putting the cash towards that first. Remember, it’s all about the sequence of your money…

  1. Do you need that cash to feed your family or pay household bills this month?

If those funds are needed for normal household expenses then you probably need to use them for normal household expenses. Your whole life policy now serves as your “emergency fund” and a broken down truck definitely fits the definition of an emergency. And even better, if you can pay for the truck repair with a credit card and “float” that money for another 30 days, you can always take a policy loan to pay off the credit card bill when it comes due if you need to at that time.

  1. Why do you have $2,100 sitting in someone else’s bank???

Now I ask that question with a half-smile because of course we are still going to have money in our checking account to use for expenses throughout the month. What I’m really alluding to with that question is that if you have fully funded your policy for the year and your monthly household expenses are covered and you are STILL piling up cash in someone else’s bank, it’s probably time to start thinking about opening a new branch to your family banking system.

If you ever have any questions about anything on your IBC journey, please reach out to me! Do not sit on an island alone—you have a coach right here to help guide you.

Speaking of questions, this Thursday, February 16th @ 7pm Central Time, my Wealth Warehouse podcast partner Paul Fugere and I will be hosting a live IBC Q&A session for our listeners and clients.

Register here:


Looking forward to talking to you soon!