Towards an infinite reserve, for your financial needs.

Infinite reserve model helps you build a monetary reserve, that serves your future financial needs. System lets you see yourself as a business owner, thereby making you understand the time value of money and opportunity costs involved in a transaction.

Maximize value

Infinite reserve model by nature of its underlying principles, never decrease in value. It grows over time with the power of compounding.

Key benefits

Improve your money management forever.

Here's a few key benefits that you get by using infinite reserve principles.

Cover opportunity costs

When you spend your money on a purchase, you are losing all its future earning potential. Infinite reserve model compensates opportunity cost, by making you repay it as a principal and interest.

Decline in spending habits

With the reserve model, you are penalized for higher spending in the form of higher taxation. You are made to think twice before you spend on anything that can be deferred.

Peer verified transactions

Every transaction recorded by a person, should be verified by other people in the reserve. You can choose to validate transactions by at least one person or by all people.

Pay yourself first

For all your spending, you need to pay a certain percentage as tax to the reserve. Principle behind this is to pay yourself first, before spending.

Part owner of the reserve

Based on the number of prudence units you hold, your ownership is proportion is implied. You can increase or decrease your ownership by buying or selling prudence units.

Members of an infinite reserve

A member must have an income source and should be financially independent from other members in your group.

An infinite reserve system, can be run and owned by one or more people. There is no limit to the number of people involved. It is a trust based system and hence, limit the network to people who are closely related. Suitable for an individual, a family or a joint venture business partnership.

Transaction Roles

Players of the game

Role a participant plays depend on the transaction type. Concept of private reserve banking model can be understood, when we visualize it as interactions that happen between five players involved in the game. Each participant in the model plays one of the role for a given transaction, depending on the type of transaction they make.

Stakeholder (The Depositor)

When you add money into the reserve, you become a stake holder of the infinite reserve. Stakeholder holds a share of the total asset holdings of the reserve.

Borrower (The Spender)

Participants who needs money, take a loan with an interest rate higher than the reserve growth rate. Borrower repays the interest and capital over a period of time.

Tax payer (A Commoner)

Tax is levied on all the expenses a participant makes per month. Amount of tax varies by expense slab amounts.

Investor (The Value seeker)

Participants of the system can enhance the growth rate of reserve by investing reserve holdings into other investments, that could carry higher risk.

Reserve (The Banker)

All types of transactions in an infinite reserve model, is structured to increase the reserve value significantly over time. Reserve is owned collectively by all stakeholders.

Stakeholder

A stakeholder can increase or decrease the stake on infinite reserve, using Prudence unit transactions

Stakeholder, the depositor

Transactions of a stakeholder

Stakeholders are like share holders of a business. All holdings of the reserve, belongs to the stakeholders. Inject more capital to increase your stake on the reserve.

Prudence unit

Prudence is the unit in infinite reserve model, that is similar to a share/stock of a company. A participant gets prudence by depositing the price of a prudence unit. As the value of infinite reserve never depreciates, valuation of a prudence unit never reduces. Sum total value of the reserve is represented by all the prudence in circulation. Prudence is fungible.

Increase Stake

Increase your stake by depositing cash to the reserve. Prudence is not market driven, and hence it's value is always fairly priced to match the exact underlying value of the reserve. You need at least one prudence unit before becoming a participant of the system.

Reduce Stake

You reduce your stake on the reserve, by returning the prudence units back to the reserve in exchange for equivalent value in cash. Minimum prudence units necessary for a transaction is one unit, as the prudence unit cannot be subdivided.

Borrower

A member can borrow money from reserve, based on the prudence units they hold. Repay the interest which is slightly higher than the base reserve growth rate.

Borrower, the spender

Transactions of a borrower

When you need money for your spending, you borrow from reserve for an interest rate that is usually higher than the base reserve yielding rate.

Borrow money

A participant when they need money, can take a loan from reserve. Loans usually does not carry any repayment deadlines apart from the interest repayments. But the total loan or liability in the system for you should not exceed your prudence value.

Floating interest rate

There is just one type of loan a person can take for expenditure. Interest rate in this case is floating and it is decided based on a few basis points higher than the reserve's idle growth rate.

Excess liability

At any point in time, total liability of a member should not exceed their ownership. A person can borrow more than this limit, if approved by all other stakeholders. A person can reduce the excess liability by either repaying the debts or by increasing the stake.

Tax payer

Tax is a small feed from the expense your members make, that helps to grow your reserve in the long run. Tax is a fixed percent of expense that is collectively accounted on all members. Higher the stake of a member, higher their contribution.

Tax payer, a commoner

Transactions of a Tax payer

Based on the spendings made by a person on a given month, a certain tax is levied.

Tax based on ownership

Tax is a form of forced saving by a member. Tax rate is set by the reserve. Based on your ownership, your effective tax rate varies. If you are owning 10% of the total reserve, then your effective tax rate is only 10% of the rate set by reserve (example: reserve tax rate is 15%; your ownership is 20%; then effective tax rate for you is 3%).

Interests on unpaid tax compounds

Tax payments are charged monthly. Tax payments can be made within an year from the date it is charged. If not paid within an year, it compounds your liability based on the idle growth rate of reserve.

Choose between fixed and actual expense

When you construct your reserve, you can choose on what basis to charge the tax. You can choose it to be as simple as a fixed amount that is same for every person or charge as per the recorded expenses.

Expense tracker

Irrespective of what method you choose to charge the tax, every individual memeber can have their own expense recording system. Sum of all the expenses can be visualized categorically to see a trend over time.

Investor

An investor takes a certain amount of money as an investment loan and invests in alternative investments with varying level of risk/reward. Repays fixed amount of interest.

Investor, the value seeker

Transactions of an Investor

An investor aims to increase the valuation of a reserve by divesting the holdings of reserve into alternate investment avenues.

Investment loan

When a stakeholder wants to divest the reserve holdings, he/she needs to take an investment loan from reserve. Investment loans carry a fixed interest rate and reserve does not care about the actual investment returns.

Delegated risk

Stakeholder of infinite reserve is expected to be responsible, accountable and takes right amount of risk while investing. When an investment is made by a stakeholder, reserve expects a fixed return out of that. Investor can keep the excess benefit or need to make up for the loss.

Graded risk assessment

When taking an investment loan, you can choose the level of risk associated with the investment. Higher the risk, higher the return rate. Fixed interest charged for aninvestment loan increases, as the risk of investment proposal increase.

Reserve

Infinite reserve strives to achieve capital appreciation along with capital preservation. Transaction with the participants are designed to increase cash inflow to reserve.

Reserve, the banker

Properties of the Reserve

Reserve never takes any amount of risk, apart from the stakeholders' credit risk. Objective of an infinite reserve is to, appreciate valuation of reserve holdings without any intrinsic risk involved.

Capital protection

Reserve holdings are in the form of risk free sovereign guaranteed deposits, that have low risk and low yield. Interest rate of these holdings are the idle growth of a reserve.

Capital appreciation

Idle funds of the reserve are divested into alternate investment aveneus, that comes with higher return potentials at the cost of higher risk. Higher risk in a reserve is covered by moving the risk of loss to the stakeholder.

Stakeholder liability

An infinite reserve cannot lend to a member, if their liabilities are higher than their ownership (based on the prudence units they hold). Any additional loans, need to be approved by all other members of the reserve.

Credit risk

Reserve is a risk-free entity. The risk it takes is only with the stakeholders. Amount of credit flexibility given to a stakeholder is dependent on the amount of prudence units they hold.

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