Smart Tax Savings: How Infinite Banking Helps You Keep More Money

Tax season can feel like a scramble—especially for business owners and real estate investors.  One moment, you’re focused on growing your business or investments and the next, you’re hit with a hefty tax bill. Time to rethink your tax savings plan.

Most people take the traditional approach: setting aside tax money in a low-interest savings account and paying Uncle Sam when the time comes. There is a smarter way—one that allows you to keep more control over your money, helps grow your wealth, and minimizes tax time stress. That’s where the Infinite Banking Concept comes in.

The Problem with Saving for Taxes the Traditional Way

Most entrepreneurs and investors handle taxes the same way every year:

• Set aside 15–30% of income in a business savings account.
• Pay estimated quarterly taxes.
• Cut a check to the IRS and move on.

On the surface, it seems responsible, but there are some flaws to this plan:

• Your Money is Stagnant – That cash sits idle, earning almost nothing in interest.
• You Lose Control – Once you send it to the IRS, it’s gone forever.
• No Leverage – That money could have been working for you in the meantime!

It’s time to rethink tax savings—not just as a necessary expense, but as part of a long-term wealth-building strategy.

A Smarter Approach: Using Infinite Banking for Tax Savings

Instead of saving tax money in a savings account, store it inside a properly structured whole life insurance policy. This way, your money remains liquid, grows uninterrupted, and is always working for you.

Step 1: Save Tax Money the Right Way 

If you’re an entrepreneur or investor, following the Profit First method ensures you never get caught off guard.

• Allocate 15–30% of your income for taxes—based on your tax bracket.
• Instead of parking it in a low or zero-growth savings account, store it inside your life insurance policy (where it earns interest and dividends, and grows tax-free).

This way, your tax money isn’t just sitting there—it’s compounding in the background.

Step 2: Use a Policy Loan to Pay Taxes

When tax season rolls around, instead of withdrawing from your savings, borrow against your policy to pay the IRS.

• Your cash value continues to grow, even while you use the money.
• You maintain full control over your liquidity for business or investment opportunities.
• You don’t deplete your reserves—giving you a financial cushion.

Step 3: Be a Responsible Banker

This is where discipline comes in. When you borrow from your policy, treat it like a real loan.

• Repay it as if you were borrowing from a lender.
• Add an extra 5-10% “interest” to your repayment—this accelerates your wealth growth over time.

By doing this, you keep the system sustainable while building even more cash value for the future.

The Bottom Line

Taxes are unavoidable—but how you save for them and pay them can make all the difference. Instead of letting tax savings sit idle or disappear forever, use the Infinite Banking Concept to:

• Keep your money growing uninterrupted.
• Maintain control over your cash flow.
• Build long-term wealth, instead of just paying bills.

By using Infinite Banking for tax savings, you take control of your money, leverage its growth, and never worry about taxes derailing your financial success again.

Ready to take charge of your tax strategy and wealth-building? Contact me or check out more blog posts to learn more about how Infinite Banking can transform your finances today!