The example I just watched was so in line with everything about my finances- 2400.monthly from SS,9000 in debt,.. I saved the video because I am determined to follow the example you set to feel in control of my debt. Thank you so much! I already have a Capital One card.
At 7:41 I had the sudden remembrance of the story of the "wicked" servant that saved his money (hoarded it and buried it) The servant had no velocity as he would have if he had invested like the other two.
I watched a lot of these Velocity videos, and you took the time to explain the principles and rules and the strategy in a way that makes sense. Thank you so much and God bless.
If i need help wit making this work and figuring out my numbers, will the 1hr coaching call help? Just trying to figure out what program to get. Thanks Denzel🙏🏻
I want to thank you Denzel for bring up HECM. I will be calling a counselor today on it. Thank you. Thank you. I have been doing Velocity banking for a few years now and it works like a charm.
Hey Cousin D... Can you make a video breaking down an individual whom wants to do velocity banking but has Business income w/business checking accounts and personal income w/ personal accounts and provide details as for them NOT to comingle. I have a tough time trying to explain to friends considering their credit cards and heloc is on their personal side. Thanks 🙏🏽
Thank you for the video. So essentially in the example used, the Heloc becomes the new 'checking account' where all income and expenses are placed into it?
Great video. Been looking at using this strategy but I'm hung up on thr HELOC application. Do you use a a variable or fixed rate? I saw the word amortized in the fine print and got scared.
In my opinion I personally use mass mutual and guardian those are my favorite and I do not use IUL personally for infinite banking I recommend watching @OregonCashflowPro
Can we do an example with varying bi-weekly income? Like $5k/mo but only $1500 one week and $1000 the next. No cash on hand, little to negative cash flow.
The 3,700 is from the total number. I’m saying out of 7,400 total expenses 3,700 is used to swipe on a credit card to get cash back rewards. Not every expense can run on a credit card without additional fees.
@@DenzelNapoleonRodriguez Thank you, Cousin D. Asked another way, would velocity banking keep your LOC balance high, therefore negatively affecting your credit score? (using 66% of your limit)
I'm not understanding how using the HELOC to pay the credit card helps. If I have a 30,000 balance on the HELOC, and I add on 3,626 to pay the credit card, I now have a balance on the HELOC of 33,626. Why would it not make more sense to just pay the 3,626 directly to the card? At 4% interest with a 30 day billing cycle, the interest would be 98.63, as you have shown. Adding the 3,626 takes the interest up to 110.55.
It doesn’t bring the interest up because we are not adding to the original balance of 30k that got pulled out. That was the first move. You missed the part where my income now goes into the HELOC to bring the balances owed down. Now before pulling money out I’m going to swipe the credit card to put as many bills as possible on there which means more of money is staying in the HELOC manipulating the rate further down meaning interest costs. At this point by the time I pull money out of the HELOC the balance will be less than 30k not more remember all my income went into the HELOC so I have to eventually pull income back out to pay bills. The credit card allows me to earn cash back and reduce interest costs on the HELOC all at the same time.
@@DenzelNapoleonRodriguez I understand that in the example, you did pay down part of the HELOC before using it to to pay the credit card. I'm sorry, I was using easy math. The point is, unless I'm missing something, you charge the card, then use the HELOC to pay the card, then income pays the HELOC. In the example you give, you have $74 in card rewards that you applied to your 3,700 card balance leaving 3,626. So why not just pay the 3,626 to the credit card from income, and add 74 to your HELOC payment also from income. In the end, you still pay 3,700 from income and still end up putting 74 to the HELOC.
What I mean about bringing up the interest is that even though you paid down part of the HELOC balance after the 30K you borrowed, you still have a balance that will not be paid off at the end of the month. So when you borrow more to pay the card, even though you paid back the amount you used for the card, your balance was still higher than it needed to be for part of the month.
@@tpaairman here’s why if I initially borrow 30k out of the HELOC to pay off debt which is the first move I know need to do everything in my power to bring that balance down because all I did was relocate the initial debt to a lower interest rate. If I dump all my income into the HELOC that means I have no choice but to pull money out of the HELOC to pay bills. Let’s say I wasn’t using a credit card to run some bills I would have no choice but to pull money out of the heloc to pay bills do you see that part? If I don’t put my income into the HELOC first I am exposing myself to more interest and the balance will be higher at the end of the month. So the way you have it is I borrow 30k and instead of dumping income in I would pay bills first and then what’s left over would pay the balance down being the cashflow. At the end of the month your balance would be higher than mine.
The better question is why should I pay off this zero percent debt early if I can allocate my cashflow somewhere else to recover more cashflow then come back to the credit card and pay it off in one lump sum before it expires or push it on to another card at zero percent. I would start thinking how can velocity banking and making extra payments actually work together for your situation. Think of it as an on off switch. Use velocity banking when it makes sense then use extra payments when it makes sense
@@DenzelNapoleonRodriguez ok thanks Denzel for your reply I guess velocity banking has more of a positive effect with high interest debt than a 0% interest debt
@@stevenhowarth8610 yes that is with anything zero is zero. Now if you were to leverage the zero percent to pay off something else and then did velocity banking on the next debt that causes acceleration
Hey thanks for the comment I’m curious to know who did you listen to that exposed the concept to yield no actual benefit? I have a bank, multiple churches, military, businesses, and non profit organizations that can verify what I say here on this channel. I’m curious to know how credible your source is.
@@DenzelNapoleonRodriguez One is “School of personal finance” on TH-cam. Look him up. Velocity banking is time consuming, with little to no benefit over principal payments
@@alexc.7868 I know him he’s a great guy we talked about doing a collab together. He himself has used a HELOC before he talks about the pros and cons of it which I agree with. He simply doesn’t practice it or teach it as much but it is a viable strategy no doubt.
Ready for Financial Coaching click here - www.denzelrodriguez.com/services-page
You are such an honest young man boricua. The pre-game move is what a lot so called "gurus" miss to sell their products.
Man, you're so underrated here on TH-cam. Genius
Thank you I’m still learning and building I’ll get there soon
The example I just watched was so in line with everything about my finances- 2400.monthly from SS,9000 in debt,.. I saved the video because I am determined to follow the example you set to feel in control of my debt. Thank you so much! I already have a Capital One card.
Great video. I’ve watched so many on TH-cam but yours finally gave me the A-ha moment making everything click!
Love it glad to help you get the lightbulb 💡 moment
Same happened to me. I love that he shows examples. I just applied for my HELOC.
Hey,here Jules from Canada.Thanks my eyes are open now
HECM typically a Reverse Mortgage - age 62 or older.
Love this video Cousin D.
Awesome explanation Denzel. God made us the head and not the tail. Thanks
At 7:41 I had the sudden remembrance of the story of the "wicked" servant that saved his money (hoarded it and buried it) The servant had no velocity as he would have if he had invested like the other two.
Good job explaining velocity banking every angle was cover thanks
Clear and simple. Probably your cleanest video yet. Thanks.
Awesome that means I’m getting better and learning more. Thank you for the positive feedback
I watched a lot of these Velocity videos, and you took the time to explain the principles and rules and the strategy in a way that makes sense. Thank you so much and God bless.
Glad I could help
If i need help wit making this work and figuring out my numbers, will the 1hr coaching call help?
Just trying to figure out what program to get. Thanks Denzel🙏🏻
@@Grod77711 yes that is a great start and we can build from there
@@DenzelNapoleonRodriguez Perfect, thank you Denzel. Appreciate your quick response brother🙏🏼
I've learned sooo much just on this video. I am so glad that looking up reviews for another company I found Denzel.
I want to thank you Denzel for bring up HECM. I will be calling a counselor today on it. Thank you. Thank you. I have been doing Velocity banking for a few years now and it works like a charm.
You pay a therapist to tell your life story. You pay a financial wizard (Denzel) to tell your financial story 😂😂
Hey Cousin D... Can you make a video breaking down an individual whom wants to do velocity banking but has Business income w/business checking accounts and personal income w/ personal accounts and provide details as for them NOT to comingle. I have a tough time trying to explain to friends considering their credit cards and heloc is on their personal side. Thanks 🙏🏽
🔥🔥🔥
Thank you for the video. So essentially in the example used, the Heloc becomes the new 'checking account' where all income and expenses are placed into it?
Correct 👍
Great video. Been looking at using this strategy but I'm hung up on thr HELOC application. Do you use a a variable or fixed rate? I saw the word amortized in the fine print and got scared.
Good video! Great way to get started. Do you have any videos on LIRPs?
As always great information brother!
Can you suggest the best Whole-life/ I.U.L in the market place in your opinion…?!
In my opinion I personally use mass mutual and guardian those are my favorite and I do not use IUL personally for infinite banking I recommend watching @OregonCashflowPro
th-cam.com/users/OregonCashFlowPro
Good Educational Content
Does velocity banking work On a 0% interest credit card
Succinct...love the clear explanation
Thank you. for the breakdown was fab.
Glad it helped you
I don’t go Tom Selleck with the Reverse mortgage! 60+
Can this also be done with a term life insurance?
Quick answer no you can’t get collateral on a term life policy on a cash value life insurance policy you can
@@DenzelNapoleonRodriguez Thanks for the knowledge and reply back.
Am in for class
Thank you
Just wow…😮
I’m trying to be “nephew ced” 😂
Do you work with canadians
How to pay mortgage without interest?
Is there a way or formula?
Have you watched the video yet or any of my case studies?
@@DenzelNapoleonRodriguez
Yes but I little difficult to understand for me.
How is the payment by weekly at 2% of 400000
@@julieweilch4315 are you referring to your own debt or a case study I did on another video?
How do I take the class?
I c it sorry 😂
Can we do an example with varying bi-weekly income? Like $5k/mo but only $1500 one week and $1000 the next. No cash on hand, little to negative cash flow.
Awesome 😎🙏great
That was a great video
How did you come up with expenses of 3700$? Expenses are 7400$
The 3,700 is from the total number. I’m saying out of 7,400 total expenses 3,700 is used to swipe on a credit card to get cash back rewards. Not every expense can run on a credit card without additional fees.
How does running a high balance on a Line of Credit or Credit Card affect your FICO score?
Typically it would affect your credit negatively the score would fluctuate
@@DenzelNapoleonRodriguez Thank you, Cousin D. Asked another way, would velocity banking keep your LOC balance high, therefore negatively affecting your credit score? (using 66% of your limit)
@@lqueso2 yes
I'm not understanding how using the HELOC to pay the credit card helps. If I have a 30,000 balance on the HELOC, and I add on 3,626 to pay the credit card, I now have a balance on the HELOC of 33,626. Why would it not make more sense to just pay the 3,626 directly to the card? At 4% interest with a 30 day billing cycle, the interest would be 98.63, as you have shown. Adding the 3,626 takes the interest up to 110.55.
It doesn’t bring the interest up because we are not adding to the original balance of 30k that got pulled out. That was the first move. You missed the part where my income now goes into the HELOC to bring the balances owed down. Now before pulling money out I’m going to swipe the credit card to put as many bills as possible on there which means more of money is staying in the HELOC manipulating the rate further down meaning interest costs. At this point by the time I pull money out of the HELOC the balance will be less than 30k not more remember all my income went into the HELOC so I have to eventually pull income back out to pay bills. The credit card allows me to earn cash back and reduce interest costs on the HELOC all at the same time.
@@DenzelNapoleonRodriguez I understand that in the example, you did pay down part of the HELOC before using it to to pay the credit card. I'm sorry, I was using easy math. The point is, unless I'm missing something, you charge the card, then use the HELOC to pay the card, then income pays the HELOC. In the example you give, you have $74 in card rewards that you applied to your 3,700 card balance leaving 3,626. So why not just pay the 3,626 to the credit card from income, and add 74 to your HELOC payment also from income. In the end, you still pay 3,700 from income and still end up putting 74 to the HELOC.
What I mean about bringing up the interest is that even though you paid down part of the HELOC balance after the 30K you borrowed, you still have a balance that will not be paid off at the end of the month. So when you borrow more to pay the card, even though you paid back the amount you used for the card, your balance was still higher than it needed to be for part of the month.
@@tpaairman here’s why if I initially borrow 30k out of the HELOC to pay off debt which is the first move I know need to do everything in my power to bring that balance down because all I did was relocate the initial debt to a lower interest rate. If I dump all my income into the HELOC that means I have no choice but to pull money out of the HELOC to pay bills. Let’s say I wasn’t using a credit card to run some bills I would have no choice but to pull money out of the heloc to pay bills do you see that part? If I don’t put my income into the HELOC first I am exposing myself to more interest and the balance will be higher at the end of the month. So the way you have it is I borrow 30k and instead of dumping income in I would pay bills first and then what’s left over would pay the balance down being the cashflow. At the end of the month your balance would be higher than mine.
@@DenzelNapoleonRodriguez I got it now. I was looking at a couple steps out of order.
No cash on hand no assets
Would velocity banking work on a credit card with 0% interest compare to just making extra payments
The better question is why should I pay off this zero percent debt early if I can allocate my cashflow somewhere else to recover more cashflow then come back to the credit card and pay it off in one lump sum before it expires or push it on to another card at zero percent. I would start thinking how can velocity banking and making extra payments actually work together for your situation. Think of it as an on off switch. Use velocity banking when it makes sense then use extra payments when it makes sense
@@DenzelNapoleonRodriguez ok thanks Denzel for your reply I guess velocity banking has more of a positive effect with high interest debt than a 0% interest debt
@@stevenhowarth8610 yes that is with anything zero is zero. Now if you were to leverage the zero percent to pay off something else and then did velocity banking on the next debt that causes acceleration
I can use your help
Reach out happy to help
And tax implications
What do you do if your cash flow exceeds your chunk?
I might have covered it in this video but it gives you permission to violate the rule and chunk higher.
HECM = Reverse Mortgage
can’t not understand nothing
That’s ok start with the velocity banking pregame work playlist on my channel everyone starts at different levels
Velocity banking has already been exposed. It offers no significant benefit over sending extra principal payments every month.
Hey thanks for the comment I’m curious to know who did you listen to that exposed the concept to yield no actual benefit? I have a bank, multiple churches, military, businesses, and non profit organizations that can verify what I say here on this channel. I’m curious to know how credible your source is.
@@DenzelNapoleonRodriguez One is “School of personal finance” on TH-cam. Look him up. Velocity banking is time consuming, with little to no benefit over principal payments
@@alexc.7868 I know him he’s a great guy we talked about doing a collab together. He himself has used a HELOC before he talks about the pros and cons of it which I agree with. He simply doesn’t practice it or teach it as much but it is a viable strategy no doubt.