What Can Velocity Banking, The Wheel Strategy, And A Clean Credit Report Do For Me?

For many years there has been this deep interest in Velocity Banking and what it can do for me.

The Wheel Strategy for investing in stocks has led to many ideas to give me financial freedom.

Having a clean credit report with a high credit score is nice but how do I capitalize on my hard work?

There are many methods and strategies out there to make money and generate wealth. Combining the concepts mentioned here is one idea that may help you like it is helping me.

Not all strategies work and some work better depending on you and your situation. If there was a “best way” they should have been found by now but there are still many ways to do almost everything and the best seems to depend on those involved, their understanding, and their preferences and this post is about one person’s point of view based on firsthand experience.

Let’s start with an overview of these concepts, starting with Velocity Banking. This concept, to me, is a means to put idle dollars to work immediately to thwart paying excessive and needed interest charges on any debt I may incur.

That means that when I have a positive cash flow in a month the cash does not sit in a checking or savings account to be used by the bank and have its value quickly eroded away from me due to inflation. The money is put toward a line of credit, either a credit card or other revolving credit line – personal, business, or home equity line of credit.

Revolving lines of credit, that allow you to access cash without fees, like balance transfer fees, can be used to transfer debt, then, when income reaches your bank account it is paid toward the debt. This lowers your debt and eliminates the need to make a “payment” because you, effectively, used the line of credit more like a checking account than a line of credit.

The idea is to methodically pay down the revolving credit line with your income, use the credit line to pay expenses and save on interest because the dollars are put into the credit line which lowers the amount owed and means there is less amount to be charged interest on.

Large installment loans can be “chunked away” by transferring a large portion of the balance to a line of credit and when it is all transferred the payment becomes positive cash flow. Yes, the same thing can be achieved, maybe even faster, by simply paying the debt with income as planned and putting the extra income toward the installment loan. But, when you use income to pay an installment loan the money is gone.

What I mean is that you can’t access those funds from your credit because it is an installment loan and isn’t revolving. Having the credit available after funds are used to pay down some of the debt is important since there are no savings available for emergencies and unexpected expenses.

Let’s move on to the Wheel Strategy.

Basically, the investor pledges cash as a security for the sale of a put option against a stock. The cash needed is dependent on the price of the stock. Each option controls 100 shares of a stock. The investor must have the cash to cover the cost of 100 shares of the stock equal to the strike price of the option.

After the option’s expiration either the investor purchases the stock at the strike price or it expires worthless. If the stock is “put” to the investor the investor then sells a covered call against the stock he now owns.

The process continues indefinitely and produces an income for the investor.

There are nuances to this strategy too. The length of time between selling the put and its expiration date. When is the best time and best setup to sell the put?

For me, the implementation is as follows:

1. Sell a put with an expiration 4 Fridays from today.
2. continue the procedure every week with the same stock
3. when the stock is put to me I sell the call also 4 Fridays from now

This is how I am getting started. As I progress I will need to use more than one stock. I have a plan for building up a portfolio to implement this strategy for the long term.

Once I have 4 weeks’ worth of the first stock I chose I am going to find another stock and sell a put 1 Friday away if it is Monday or Tuesday and 2 away if it is after Tuesday when I decide to sell.

The plan is to continue selling the puts until I can afford to sell 4 puts like with the first set of puts. I want to have a put sold each day of the week, and I say put but it depends on whether or not depending on if I own the stock or not.

When the whole thing is going the way I plan I will have 5 stocks I work with to create income selling options in the wheel strategy.

As time goes on and my wealth increases I plan to scale up the number of contracts I sell of each stock each week.

Now, how does a clean credit report and velocity banking play into all of this?

A little story:

A “friend” was struggling with a low credit score. He also found some ideas about how money works, how the laws work, and how religion has a major impact on everything in society today.

The rabbit holes on those topics are DEEP!

This friend showed how the banks have perpetrated a scam on the world’s citizens in an attempt to enslave humanity.

This friend was enraged, to say the least. He went crazy trying to find an escape from this evil plot.

The “conspiracy theorists” in this realm advised him that the laws are written in a cryptic manner and when interpreted properly show the scam and how to protect oneself.

Then, the unscrupulous “influencers” use the pain and anger to turn the consumer against himself for their own greed.

Then, that friend realized that there are laws to protect consumers and there are legal methods to fight against unfair practices and it lies in the consumer report.

There are numerous books and YouTube videos with tons of tips, tricks, methods, and techniques to get rid of any negative information on a consumer credit report.

Some are good and many are the same gurus spewing clickbait at unsuspecting consumers looking for a way out.

The victims are easy targets and are already known to be malleable mentally and easily bent to provide profit for the “wolves”!

But, there is some truth in what they claim. They just sensationalize their claims and the unsuspecting are easily convinced because of the manipulation readily available for use against them.

This friend found the real teachers who give the information to protect consumers and clear up the credit reports. There are methods that must be followed by both consumers and creditors.

By clearing negative, inaccurate, and incomplete information from a consumer report leads to a higher score or at least sets up the consumer for the highest likelihood of securing beneficial accounts to build up a credit score quickly.

Higher credit scores, due to clean and clear consumer reports, lead to better interest rates and higher lending limits.

Successfully utilizing credit lines and loans in the aforementioned strategies can lead to higher cash flows, faster debt elimination and a method to live without needing to run a service or business.

There is no desire to sell you something. I have no need to convince you of anything. I also have no need or desire to lie about what I’ve found.

There is plenty to do. There is also plenty to learn.

Why would I waste my time writing about this?

I need to think about it. I want to make sure I understand what I am doing. I want to show how this is working for me. In the future, I may change my mind or an opportunity to generate profit may arise.

In the past, I studied marketing for online businesses, email marketing, and copywriting – along with many other seemingly simple online money-making methods.

With my training and my knowledge, if there is a demand, I can recommend products I use in my wealth-building activities and if those products also have commissions available for recommending them I could build myself another income stream by sharing what I am doing and what is working for me.

I have recently seen some stock market gurus being blasted for not providing honest, transparent, accounts of their actual experiences and I do not want that for myself.

The wheel strategy I am using does have some risks associated with it.

My plan is to use the options to generate income. If the underlying moves against my position rapidly I could lose lots of value in my account. While that seems like a big detriment to my plan I think that there is more likelihood that the income will exceed the cost and risk but only time will tell.

By having good credit, quickly paying back debt with velocity banking, and choosing the right stocks I see an opportunity to prosper without needing to go work for someone else and it can be done online from anywhere there is an internet connection and that is what I have been searching for!