Maximizing Your Finances:
How One Ranch Hand Turned $500 into a Business Empire
"What would you do if you had $500 cash per week for food expenses for your family of four, with around $175-$200 spent on food and the remaining $150- $300 available for savings or business activities?"
Let me explain my situation. I work as a ranch hand, and since it's a work-trade situation, I get to park my RV on a plot of land with hookups for water and electricity. This means that I have zero utility costs.
As a ranch hand, I offer services to the landowner, and I need a way to record my income. Therefore, I was advised to form an LLC that offers services and consultation. I opened a business bank account and deposit all my cash into it. Every pay period or quarter, I create an invoice and submit it to the ranch for services rendered, and I've already been paid.
This way, I have a record of income. In 1 to 2 years, I can use these records to prove regular employment as an entrepreneur and purchase a home or a large piece of property with a bank loan.
I can also purchase business related courses and educational material through my LLC that I can also write off more easily than I could if I was a sole proprietor. As long as you’re keeping a record and making your purchases through your business bank account, you have a much higher percentage of right off. Plus if you’re actually using the money from your Infinite Banking system, you’re actually making money on top of your money. I’ll touch on that in a minute.
By establishing myself as a business with a bank account and regular revenue stream, I can now access business credit in the form of credit cards and lines of credit through my bank. To maximize my cash and lines of credit, I didn't start a whole life insurance policy as promoted by Nelson Nash in his infinite banking system. Instead, I put all my cash from my account and all the cash that I can from my line of credit and used it to start my whole life insurance policy at $10,000.
Within 3 to 4 days, I was able to get a line of credit of $8,000. I pay back 70% of my credit cards and put 70% back in my bank account, keeping a good standing with the bank and creditors. I then continue to make monthly payments early on the credit cards and reapply for credit in six months.
The money that I used to open up the whole life insurance policy is compounding at 4 to 6%. I pay back the whole life insurance loan with 7% interest, and the money continues to compound as I pay it back. Once the money is paid back, I can then pull out money again for other investments, purchasing equipment, or down payment on a new piece of land. Essentially, I have become the bank, left behind liability lack consciousness, and taken responsibility for my finances.
With the LLC in place and structured properly, I can easily bill customers for the services that I offer, including farm services, consultations on land use, marketing services, and any other projects a farmer or rancher might need.
Take the necessary steps to secure your future by investing your knowledge and creating a business for yourself. Exit the W-2 employee model and the 1099 sole proprietor IRS trap. Continue to educate yourself on how to build your credit and protect your assets. If you want to go down a real rabbit hole, look into natural law and the next level of financial consciousness.
Are you ready to take control of your financial future and make your homesteading dreams a reality? Starting a passion-based side hustle could be the perfect solution for you. In my upcoming blog post, I'll be sharing practical tips and insights on how to turn your hobbies and interests into a lucrative source of income. Whether you're a skilled craftsman, talented gardener, or passionate writer, there's a side hustle out there for you. Stay tuned for an informative and empowering read that will help you take the first steps towards building a successful and fulfilling homesteading lifestyle.