How to Set Money Aside and Pay Yourself Back with Infinite Banking

One of the biggest perks of the Infinite Banking Concept (IBC) is that you get to borrow from yourself—no banks, no approvals, no stressful terms. But here’s the kicker: just because you’re borrowing from yourself doesn’t mean you can skip paying it back. Repaying your policy loan is key to keeping your cash value growing and your policy strong

The good news? You get to control how and when you repay the loan. But to make the most of it, you need a plan—and, most importantly, an end date for repayment.

Let’s dive into how you can set money aside, stick to a repayment schedule, and ensure you stay on track.

Treat It Like a Real Loan (Because It Is)

First things first: think of the loan as a commitment to your future self. If you borrow $10,000 from your policy, you need to have a plan to pay it back in full by a specific date. Why?

• It ensures your cash value grows uninterrupted.

• It protects the long-term health of your policy.

• It helps you develop discipline with your money.

When you set an end date for repayment, it creates a sense of accountability. Without it, you might be tempted to drag the process out indefinitely—or, worse, not pay it back at all.

Step 1: Set an End Date

Decide on a timeline that works for your financial situation. For example:

• Short-term loans: 1–3 years for smaller expenses like a vacation or car repairs.

• Medium-term loans: 3–5 years for larger purchases, like buying a car.

• Long-term loans: 5–10 years for big investments, like funding a business or paying for college.

Let’s say you borrow $15,000 and decide to pay it back over five years. That gives you a clear end date to work toward.

Step 2: Create a Repayment Plan

Once you have an end date, calculate how much you need to repay each month, quarter, or year. Include interest—this is money you’re paying back to yourself, so it actually grows your policy even more.

For example:

• Loan amount: $15,000

• Interest rate: 5% (you set this rate)

• Term: 5 years (60 months)

Your monthly payment would be about $283.

Step 3: Build Repayments into Your Budget

Treat your repayment like any other bill. Here are a few strategies:

Monthly Payments

Set aside money every month and automate the payments if possible. Consistency is key to hitting your repayment goal.

Quarterly or Yearly Payments

If your income fluctuates—like if you’re self-employed or receive yearly bonuses—quarterly or annual payments might work better. For example, you could pay $850 every quarter or $3,400 annually.

Flexible Payments with a Hard Deadline

One of the perks of IBC is flexibility. If you have a tough month, you can adjust your payment schedule temporarily. But the key is to always stick to your end date, even if you have to catch up later.

Step 4: Track Your Progress

Keep an eye on how much you’ve repaid and how much is left. This keeps you motivated and ensures you’re on track to meet your end date. You can use a simple spreadsheet or a financial app to track your loan balance, interest paid, and remaining term.

Step 5: Celebrate the Finish Line

When you reach your end date and the loan is fully repaid, take a moment to celebrate. Not only have you restored your policy’s cash value, but you’ve also grown it thanks to the interest you paid back.

Plus, you’re now in a position to borrow again for your next big goal—whether it’s an investment, a major purchase, or just building more financial security.

Why Having an End Date Matters

Having an end date does more than keep you disciplined—it builds confidence in your ability to manage your money and maximize the benefits of IBC. You’re not just borrowing and repaying—you’re creating a system that works for you and your family’s future.

The Bottom Line

Setting money aside to repay your policy loan isn’t just about being responsible—it’s about building wealth and control over your finances. Whether you choose monthly, quarterly, or yearly payments, always stick to a repayment plan with a clear end date.

By following through, you’re not only paying yourself back—you’re setting the stage for long-term financial success. And that’s something worth working toward.