One of the most important lessons taught by Nelson Nash, creator of the Infinite Banking Concept (IBC), is that building capital should always remain a priority. Nash often emphasized that opportunities favor those who have access to capital. Those who control capital enjoy greater freedom, flexibility, and financial security.
But first, let’s define what we mean by capital.
Broadly speaking, capital is financial assets, money, or resources used by individuals or businesses to fund operations, make investments, and generate future wealth. It is the lifeblood of economic activity, allowing for growth, innovation, and the purchase of productive assets. For individuals, capital is often simply money that is accessible and readily available to invest, make a deal, or purchase an asset.
In the context of Infinite Banking, “don’t hesitate to capitalize” means consistently funding and strengthening your properly structured whole life insurance policy. Many people become hesitant when they see premiums leaving their bank account, focusing on the short-term cost rather than the long-term benefits. Nelson Nash encouraged practitioners to view premium payments not as an expense, but as a transfer of money into a system they own and control.
Capitalization creates the foundation for future policy loans, investments, business opportunities, and financial resilience. Just as a business requires adequate capitalization to thrive, your personal banking system requires ongoing contributions to maximize its effectiveness.
Underfunded systems produce limited results. Well-capitalized systems, however, provide increasing liquidity, control, and opportunity over time.
Nelson Nash frequently reminded us that wealth accumulation is a process, not an event. By consistently adding capital and maintaining a long-term perspective, policyholders position themselves to recapture financing costs, reduce dependence on traditional lenders, and build a more efficient financial system for themselves and future generations.
The principle is simple: when you have the opportunity to strengthen your banking system, don’t hesitate to capitalize. The more capital you control, the more options and opportunities become available in the future.
