Episode 298: How to Become Your Own Bank: Infinite Banking for Women Entrepreneurs with Erica Neal
Infinite Banking for Women Entrepreneurs: How to Become Your Own Bank
Look, I get it - banks are saying no left and right while investors seem impossible to reach. But here's what nobody tells you: there's a wealth-building secret that Disney, McDonald's, and Pampered Chef used to fund their growth without begging anyone for permission.
You've probably heard this advice a thousand times: save more, max out your 401k, and pray everything works out in 30 years. Meanwhile, entrepreneurs face two terrible choices. Keep your money where you can actually use it (earning basically nothing) or lock it away forever with crazy penalties if you need it.
But what if I told you there's a third option? One that massive companies have been using quietly for decades, while the rest of us follow advice that keeps us broke?
Finance educator Erica Neal figured this out after watching something heartbreaking happen over and over. Clients who did everything "right" - followed every piece of traditional advice perfectly - still ran out of money when they needed it most. Her path from teen mom to Wall Street insider led her to infinite banking for women entrepreneurs, and honestly, it might change how you think about money forever.
So What Exactly Is This Thing Called Infinite Banking?
Think of infinite banking as building your own personal bank using specially designed life insurance policies. Instead of savings accounts that earn nothing or retirement accounts you can't touch without penalties, these give you guaranteed growth, tax breaks, and complete access whenever you want it.
Here's the part that blew my mind: you don't need to ask anyone for permission to use your own money. This cash value life insurance approach gives entrepreneurs the flexibility we actually need instead of making us jump through hoops.
"The best time to plant a tree was 20 years ago. The second best time is now. Stop waiting for perfect conditions to start building real wealth." - Erica Neal
How Smart Companies Actually Got Their Funding
While you've been told to rely on bank loans and investors, check out what these companies did instead:
- Disney World got built using Walt Disney's life insurance policy when banks wouldn't help during tough times
- McDonald's funded major expansions this way instead of traditional loans
- Pampered Chef started with just $5,000 from founder Doris Christopher's policy after banks said no
- Rockefeller Center - yeah, that massive building - was funded entirely through JD Rockefeller's policy during the Great Depression
See the pattern? These companies chose control over begging. They picked growth over restrictions. Most importantly, they became their own bank instead of hoping someone else would help them out.
Let's Talk Real Numbers (Because You Deserve the Truth)
I'm going to break down exactly what you can expect with this wealth-building for entrepreneurs strategy:
- Year 1: You can access about 80% of what you put in (there are setup costs, I'll explain why this actually makes sense)
- Year 2: Usually, 90-95% of any new money you add
- Year 3: Similar access while you're building toward full equity
- Year 4: Dollar-for-dollar access as those initial costs get recovered
- Year 5 and beyond: Here's where it gets exciting - you often get access to MORE than you put in
Real example: in year five, you might put in $20,000 but have access to $25,000. That's compound interest actually working for you instead of some bank getting rich off your money.
"I was tired of watching my clients follow all the 'rules' and still struggle financially. There had to be a better way - and infinite banking was it." - Erica Neal
Why Those Setup Costs Aren't Actually a Problem
People get nervous about not having 100% of their money right away. But think about when you buy a house - you don't own it outright after making one payment, right?
Here's the difference, though: unlike your house, where you can't touch that equity without selling or refinancing, these policies let you access most of your money immediately while building toward even better access later.
Those "acquisition costs" aren't roadblocks - they're investments in your long-term wealth. Would you rather have complete access to money that's doing nothing for you, or 80% access to money that's guaranteed to grow?
This is where Erica's wisdom really hits home. When financial stress comes (and let's be honest, it will), you've got two choices:
Getting Buried means you're surrounded by restrictive accounts, debt, and systems built to make banks rich instead of helping you succeed.
Getting Planted means creating an environment where your money grows while staying available for the opportunities that matter.
Here's what I want you to understand: financial setbacks don't have to kill your dreams. Sometimes they're exactly the push you need for massive growth - but only if you've planted yourself in the right soil.
"The difference between being buried and being planted is the environment you create around your challenges. Same dirt, completely different outcome."
Tax Benefits That Actually Put Money in Your Pocket
While everyone else is paying taxes on whatever tiny growth their savings manage, infinite banking works under IRS tax code 7702. Translation: you get some serious advantages:
- Your money grows tax-free inside the policy
- You can borrow against it tax-free
- Interest on business loans is often tax-deductible
- Protection from creditors in most states
- No limits on how much you can contribute (unlike 401ks)
- No income restrictions
How You Actually Make Money While Borrowing Your Own Money
This is where infinite banking for women entrepreneurs gets really smart. When you need cash, you take a loan against your policy instead of withdrawing money directly.
The full balance keeps earning compound interest and dividends while you use the money you need. Then you pay yourself back however works for your situation - over months, years, even decades if you want.
Get this: you might pay 5% interest on your loan, while your policy earns 4% guaranteed, plus another 2-3% in dividends. You're literally making money while using your own cash for business funding, without relying on banks.
Why Traditional Financial Advice Keeps You Stuck
Wall Street wants you to believe there are only two choices: risky investments or safe accounts that earn nothing. Wall Street's approach keeps you dependent on their systems and paying their fees. But women entrepreneurs need something completely different. We need money that grows while staying accessible for opportunities. Traditional retirement accounts make you choose between growth and access. This cash value life insurance approach gives you both.
"Stop playing by rules designed to keep you small. Your money should work as hard as you do, and you should control when and how to use it."
Getting Started: You Don't Need to Be Rich Already
Here's something that might surprise you. This alternative business funding approach works whether you're putting in thousands or millions annually. The policies get designed around your actual situation, not some fantasy budget.
The real secret? Start now instead of waiting for "someday" when everything's perfect. Compound interest rewards time more than anything else, so every year you wait is wealth you're giving up.
Is This Actually Legal and Legit?
Absolutely. This life insurance banking strategy uses tax codes and regulations that have been around for decades. The strategies aren't some secret loophole - they're just not promoted by traditional financial institutions because they make less money when you're in control.
But let me be clear: this isn't some get-rich-quick scheme. Like any real wealth-building strategy, it takes understanding, proper setup, and patience to get the full benefits.
Your Next Step Forward
If you're tired of choosing between money that's safe but stagnant or investments you can't touch when opportunities show up, this might be exactly what you've been looking for.
This business funding without banks works best for entrepreneurs who get that real wealth needs both growth AND control. Do your research, work with people who know what they're doing, and make sure whatever you choose fits your actual goals.
Ready to dive deeper into infinite banking for women entrepreneurs? Finance educator Erica Neal has created a comprehensive mini-course that covers everything from the foundations to real-world applications. Use code GAMEON for 20% off and start taking control of your financial future today.
About Erica Neal
After earning her bachelor's degree in finance & economics, Erica began her career in finance by working for a large investment firm, learning the basics of running a financial practice but also becoming aware of large holes in the traditional financial planning process. Though she was able to obtain success & company recognition for her achievements, Erica knew there was a better way to build her clients' wealth.
To provide more comprehensive strategies for her clients, Erica left the large box company to join a boutique, independent financial firm where her planning process transitioned from a narrow focus on rate of return to building efficient cash flow strategies and increasing income through alternative assets and the Infinite Banking Concept. In addition to expanding her financial planning methods, Erica also began to invest in real estate. Eventually, Erica and David White decided to merge their practices and open their own firm to focus on their passion…. cash flow strategy.
Since co-launching Infinity Investment Strategies, Erica has continued to build her real estate portfolio as both a passive and active investor, acquire businesses, and provide resources on Infinite Banking education and services for investors. As an Authorized IBC Practitioner, Erica provides information and resources to investors and business owners about the power of the Infinite Banking Concept in their portfolio. As a speaker, Erica's expertise extends to the intersection of mindset and money, unraveling the barriers that hinder personal growth and prevent individuals from realizing their fullest potential and building wealth.
Having become the "Go To" group for creative financial strategies and Infinite Banking, Erica continues to build her businesses and educate on "Real Money Truths", de-mystifying how to build wealth and helping others create a strategic plan for generational impact.
About Sarah Walton
Sarah Walton is a business coach, podcast host, and mentor who helps women entrepreneurs build businesses they love. She's the creator of the Abundance Academy, Effortless Sales, and the Game On Girlfriend® podcast. Sarah's mission is to put more money in the hands of more women while teaching authentic, heart-centered business strategies.
Binge More Game On Girlfriend™ Podcast Episodes
Something Just for You
Freedom in your business is here. Make revenue that allows you to exhale. Grab my free Freedom Calculator below, and know exactly how much your business needs to make so you can be FREE.
Thanks for subscribing! Check your email for further instructions.