You may know me from my YouTube Channel Denzel Napoleon Rodriguez, and I'm The Finance Geek. I'm here to introduce you to the method called Velocity Banking!
In the past you may have heard about Velocity Banking in the same sentence as "it's complicated" and even "is it a scam?" This is NOT true, and for many people, Velocity Banking is the first step in a long line of lifestyle changes, but what exactly is Velocity Banking and how does it work?
Velocity Banking is defined as the use of financial and banking products that manage and increase cash flow, to quickly create financial security by eliminating, reducing, or minimizing interest. Velocity banking is a more efficient way to use your current income.
The first thing I tell anyone who is thinking about starting Velocity Banking is to know your 4 Major Numbers: These numbers are Income, Expenses, Debt, and Cash Flow.
Knowing your Income and Expenses is pretty straightforward, what do you get paid and how much are your bills. Debt and Cash Flow may require a bit more research and dedication. Debt - not only do you need to know the timeline and monthly minimum payment I need you to know the current interest rates and amortization schedules on all of your debts. The next big part of Velocity Banking is having cash flow. While you can slowly use Velocity Banking with $50 of cash flow, the process will go much more quickly with at least $500 of cash flow a month.