Why "The Policy Eats First" – The Key to Long-Term Financial Security

If you’ve followed me for a while, you’ve probably heard me say, “The policy eats first.” It’s not just a catchphrase—it’s a philosophy, a financial strategy, and ultimately, a game-changer for those serious about building long-term wealth. But what does it actually mean? More importantly, how does it apply to you?

Let’s break it down.

The Hard Truth About Traditional Savings

Most people were taught to save money in a bank. You get paid, cover your expenses, maybe invest a little, and if there’s anything left, you tuck it away in a savings account.

But here’s the issue—this approach keeps you at the bottom of your own financial priority list.

Life happens. Bills pile up. Unexpected expenses come out of nowhere. And that savings account? It gets raided before it ever has a chance to grow.

This cycle keeps people stuck. No matter how much you earn, it always feels like money is slipping through your fingers. That’s because you’re not paying yourself first.

What Does “The Policy Eats First” Mean?

The phrase means your money should first go into an asset that benefits you long-term before anything else. That asset? A properly structured whole life insurance policy designed for infinite banking.

Rather than saving in a traditional bank where your money earns next to nothing, you’re building a financial system that pays you back. When you prioritize funding your policy, you’re feeding an asset that grows uninterrupted, earns dividends, and gives you access to capital whenever you need it.

The Shift: Becoming Your Own Bank

When your policy eats first, you’re shifting from being a consumer of financial products to becoming your own bank.

Think about how banks operate. They collect deposits, lend out money, and make a profit from the interest they charge. Now imagine if you did the same—but for yourself.

By prioritizing your policy:

• Your cash value grows tax-efficiently.

• You can borrow against your policy for major purchases (without depleting your savings).

• Your money continues compounding—even when you take out policy loans.

• You stay in control of your financial future.

Why Most People Get This Wrong

Most people operate in reverse. They get paid, cover their bills, make impulse purchases, and then try to save whatever is left over. The problem? There’s rarely anything left.

When you make your policy the priority, you eliminate this problem. You’re not waiting to see what’s left—you’re funding your financial future first and working everything else around it.

This isn’t about living frugally or cutting back on things you enjoy. It’s about setting up a system where your money works for you before it works for anyone else.

Real-World Application: How to Make This Work

So, how do you actually put this into practice?

1. Set a Target Contribution

Your policy should have a designated premium and paid-up additions (PUA) contribution—this is the money that fuels your financial engine.

Decide on an amount that fits your situation. Ideally, this should be at least 10-20% of your income, but start where you can. The key is consistency.

2. Automate Your Deposits

Treat your policy premium like a non-negotiable bill—just like your mortgage, rent, or car payment. Automate it so the money moves before you even have a chance to spend it elsewhere.

3. Use Policy Loans Strategically

Once your cash value builds up, you can borrow against it for major expenses—cars, home improvements, business investments, even emergencies. The difference? Instead of paying a bank, you’re paying yourself back, keeping the interest in your ecosystem.

4. Reinvest and Keep the Cycle Going

When you take a policy loan, have a plan to pay it back with interest—just like a bank would. This keeps your policy growing while ensuring you always have access to capital.

The Long-Term Payoff

When you commit to letting the policy eat first, you’re playing a long game that leads to total financial control.

Here’s what happens over time:

• Your cash value builds into a personal banking system.

• You eliminate dependence on traditional banks and lenders.

• You create a tax-efficient way to pass wealth to your family.

• You gain financial security—no more paycheck-to-paycheck stress.

The best part? You’re no longer working for money—your money is working for you.

Final Thoughts

Infinite banking isn’t just about having a life insurance policy. It’s about taking control of your financial future.

When you shift your mindset and put your policy first, you create a foundation that supports you for decades to come.

So, next time you get paid, remember: The policy eats first. Because when you prioritize your financial security today, you guarantee wealth, freedom, and opportunity for tomorrow.