Welcome back. In this episode we are going to talk about how to set up what I
call a family bank to help your children empower them. Instead of just a dumping
money in their lap. As you watch this episode, you're going to get some epiphanies
and insights into opportunities that maybe you didn't know existed before. And
at the end, I'm going to give you the opportunity to receive one of my
best-selling books absolutely free. I'll ship it out to you. You just pay nominal
shipping and handling fee. And you'll learn more about the nitty-gritty of how
to set up what I call a family bank. But get ready because you're going to gain
insights into ways that you can actually help instead of hinder your children
when they need help financially.
I'm Doug Andrew and I've helped people establish what I call a family bank or a
legacy bank. This is a conceptual bank. Not a chartered bank like down the
street but it works the same way. You make deposits and withdrawals. Not just a
money or financial assets. But what I call the true KASH. Spelled K-A-S-H. And
you're going to understand that this is far more important that you leave behind
how to fish instead of dumping fish and your kids and grandkids laps or whoever
you want to benefit --charities or what have you in your family bank. And it's
really understanding the difference between what I call leaving behind this
swing instead of a bunch of golf clubs. Because if you were going to be playing in
a golf tournament and you had the choice of using a professional golfer like Phil
Mickelson swing or you could use as clubs, what would you choose? Well, I'd
rather leave behind the swing not the clubs. I'd rather have the use of the
swing. Most estate planning attorneys focus on dividing up the golf clubs and
the trophies among the kids and the grandkids when you die. No, I want to
leave behind the strategies, the concepts, knowledge, attitude, skills and habits. So,
in the 3 dimensional approach that we talked about on several episodes, this
whole channel is about 3 dimensional well. It's about the financial dimension.
The foundational dimension and the intellectual dimension. But all too often,
what I like to do is focus here on the center and this is what I call the
perpetual cash fund. So, if I were to magnify that or let's instead of
highlight let's magnify it here. This is the perpetual cash fund. And we're making
deposits and withdrawals of not just money for those that you care about. But
also all of this wisdom and knowledge and heritage and genealogy and history,
your beliefs and values. You're also making a deposit into the family record
or archive of your experiences. Both good and bad. What you learned, your education,
reputation, systems, methods, traditions, alliances, ideas and skills.
And so, by doing that, this becomes the family bank. So, how does this work? This
cash is spelled K-A-S-H. Knowledge, Attitudes, Skills and Habits. I would
rather leave behind that cash to those that I care about than a bunch of money.
the C-A-S-H. Because this will generate the C-A-S-H cash into perpetuity. And when we
talk about a cash fund or a family bank, fund is an acronym. I'm an acronym guy. So,
FUND means Family, a Unity that Never Dies. And I like team stands for together
everyone achieves more. So, when we look at the family bank concept, it's having
balance between the financial dimension, the foundational dimension and the
intellectual dimension. And it's really learning and teaching how to be healthy,
wealthy in and wise in all 3 dimensions. In fact, I'm writing a book
with that title wealthy healthy and wise. Because this is like a 3-legged
stool. And all too often. When all you do is leave behind money,
it causes sometimes the extraordinary consumption or to those you leave it
behind to. And it discourages saving money. And it sort of takes families from
a "we" to "me" Oh, when do I get my share when it's just about the money? So, when
you leave behind your philosophies about how to be healthy and not just
physically and not just financially. But emotionally, spiritually. How to be wise
and capture the wisdom the lessons that you've learned. And so, I have all kinds
of ways that I capture the knowledge attitudes skills and habits to deposit
that into my own family legacy bank. And so, I have a lot of curriculum and videos
and education, workshops. I teach it in my various books to empower those people
that I care about to teach your children, grandkids how to live, how to love, how to
learn, how to give and to earn. This is extremely important when
you're wanting to establish a family bank, conceptual bank, a repository where
the real value, the real true authentic wealth is transferred using a system
that requires responsibility and accountability where when they step up
to the plate, they have skin in the game. If they need money, they might borrow it.
They may have to come in with a portion. And you match it. But you also want them
to withdraw and meet together. Once a year, we have family retreats with a
purpose. And we help our children and grandchildren understand what our values
and vision statement is. Because we believe it's more important that values
are understood before the assets are valued. Then they can be brought into
balance and harmony to provide ever-increasing results. Also, the
intellectual assets. And so, we challenge our children and grandchildren to always
share the wisdom that they've gained from both good and bad experiences. And
in the various books that I've written, we share some of the stories where my
two sons for example, on family retreats in Maui clear back in 2001 withdrew
wisdom from the family bank. So, let me give you that quick story and then I'm
gonna connect the dots for you. So, when I talk about deposits and
withdrawals, let's say of wisdom over here. So, when we have family vacations
with a purpose and I want you to watch the episode that talks about that. Many
times if we meet in the basement of our home or the canyon or Lake Powell.
But in Maui, we meet every 2 years. We've been doing that since our kids
were in junior high school. So, they will take one day and they withdraw wisdom
from that. Now, we all share wisdom. But I remember in 2001. It was right after 9/11.
And my two sons were helping me edit my first book Missed Fortune. And in that
book, I talked about how to buy a house with no money down and no credit. And
they said, "Hey, Dad. Can you still do that in a recession?" And I said, "Oh, yeah. Let me
my wisdom." When there's anxiety, there's opportunity. So, in Maui 2001, I taught
them how to buy a house with no money down or no credit. And they went back. And
within three weeks they had a list of about 30 homes that met the criteria.
Long story short, both of my sons bought homes with no money down and no credit.
They did it again. The difference between thrivers and
arrivals is they repeat the process. And lo and behold by ages 26 and 28,
they had net worths of 1.6 million dollars. And that got the attention of
Time Warner, my publisher. So, in 2007, my publisher commissioned my 2 sons to
write a book titled Millionaire by 30's. Now I co-authored it with them because
the average college graduate 10 years after graduating only has a net worth of
15,000 back then in 2007. And my 2 sons had net worth of 1.6 million each. And
they didn't learn that in college. And so, we believe that you should have your
money earning more than you do by age 32. And so, they were offered a $400,000
advance. So, what do you think the withdrawal of wisdom was in Maui of 2007.
"Dad, how do you write a book?" Oh, you don't have to be a writer to be an author. An
author is an authority on a subject. You are authorities on that subject. And so, I
used a system to be able to help them write this book in 36 hours. Because I
learned my first book took 10 years. My next book took one year. My New York
Times Wall Street Journal number 1 bestseller book took only 4 months.
Now I write a book in 36 hours. And I have a whole course. If you have a book
in you where you can do that, too. They wrote this book, 12 chapters in 36
hours. That's explained in another episode. But where did they learn to do
that? On family retreats where they were withdrawing wisdom. They came back the
next year and they shared and made deposits of what they learned for their
4 sisters. And then they made deposits and this became a best-seller and
thousands of people have sent thank-you notes for sharing that wisdom they
learned. That is the power behind a family bank. Capturing the knowledge,
attitude, skills and haabit. So, my recommendation to you if you want
to set up a family bank to be able to capture that K-A-S-H. I want you to get a
free copy of my book entitlement abolition because I talked about how to
do that in here in chapters 5 and 6. I'll gift you one of these absolutely
free. You just go to entitlementabolitionbook.com and pay a nominal
5.95 shipping and handling. And I want to send this out to you
immediately. You can also have options to upgrade to audio and digital and
mini-courses if you want. But it's really to empower you to understand how you can
set up your family bank with the rules of governance you want to take care and
empower those that you care about.