Profit First Meets Infinite Banking: A Smarter Way for Business Owners to Build Wealth
Let’s face it—running a business is no small feat. Between payroll, marketing, and chasing invoices, it can feel like there's never enough left over. That’s where Profit First swoops in and changes the game. And if you’re ready to take things to the next level? Enter infinite banking.
This combo isn’t just a smart play—it’s a strategy to multiply your money without changing how you run your business. Let’s break down how to use both models to boost profit, increase financial control, and build generational wealth.
What Is Profit First and Why It Works for Business Owners
Profit First, created by Mike Michalowicz, flips the old business equation on its head. Instead of Sales - Expenses = Profit, you operate under:
Sales - Profit = Expenses.
Translation? You pay yourself first—on purpose—then run your business with what’s left. This forces discipline and keeps your business lean, sustainable, and actually profitable.
It works because it gives every dollar a job. You create separate bank accounts—Profit, Owner's Pay, Taxes, and Operating Expenses—and divvy up your revenue consistently.
Understanding Infinite Banking as a Wealth-Building Tool
Infinite banking is a strategy that lets you become your own bank using a properly structured whole life insurance policy. Instead of borrowing from traditional lenders or draining savings, you borrow against your policy’s cash value.
The best part? Your cash continues to grow—even while you’re using it elsewhere.
When set up correctly, your policy becomes a liquid, tax-advantaged reserve. Think of it as your private bank account that compounds interest uninterrupted.
How These Two Strategies Complement Each Other
Profit First gives you control over your cash flow. Infinite banking gives you control over your capital. When you pair them, you:
Ensure consistent profit distributions
Redirect a portion of that profit into your policy
Build a financial safety net that also earns you uninterrupted growth
It’s like stacking wins: one system makes sure your business pays you, the other multiplies those dollars behind the scenes.
Where to Allocate Profit First Buckets to Fund Your Policy
So where do the funds come from?
Start with the Profit and/or Owner’s Pay accounts. A percentage of each distribution can be allocated to pay your whole life premium. Over time, this strategy builds up a cash reserve that becomes available for strategic use (or emergency back-up).
It’s not about adding another expense—it’s about redirecting cash flow to something smarter.
Benefits of Using Your Policy as a Capital Reserve
Here’s where it gets powerful: once your policy is funded and growing, you can borrow against it for:
Business growth opportunities
Equipment upgrades
Marketing pushes
Tax payments
Even personal goals (think real estate or debt payoff)
Unlike bank loans, policy loans are private, flexible, and don’t require approval. You set the terms.
Real-Life Example: Reinvesting Business Profits Through Infinite Banking
Let’s say your business brings in $250K annually. Using Profit First, you allocate 10% to Profit. That’s $25K a year. You use $15K to fund your policy and let the cash value grow. Down the road, you borrow $10K to upgrade your website or launch a product line. Your money never stops working—it just moves smarter.
Final Thought: Stop Letting Your Dollars Work Only Once
With Profit First, you take back control. With Infinite Banking, you take back ownership.
When you combine the two, you’re not just running a profitable business—you’re building long-term wealth without relying on banks or Wall Street. That’s smart. That’s sustainable. That’s what freedom looks like.
