Step Fifteen to a Fortune:
How to use a slide rule to make a fortune
If you can sell it for more than you can buy it, you can always make more money.
If you can sell something you have for more than you could or would pay for it, there is no reason to keep it and every reason to sell it for the capital it provides.
From $90.90 in reserve capital I will risk up to $3.13 (the scheduled amount for this step) looking for a return greater than $3.45
If you can learn to sell things for more than you can buy them, then the more you buy the richer you can get.
Before a penny capitalist can expect to make a great fortune, he should learn to take care of the wealth he already has. I have a lot of unused capital stored in drawers. To reduce clutter and make the wealth that I do have easier to manage, I need to convert these items to cash for liquid investment purposes. I use a financial calculator now and have no need for a slide rule. I listed it on ebay and sold it.
While I'm waiting for my skill at finding bargains to catch up to my skill at spending money, I'll sell off some of my old stuff to make room for new, better, and more useful stuff.
Before listing on ebay, I checked to make sure slide rules were selling. They were! I took a picture of mine and listed it. It sold for $6.21. Shipping was $3.89 and the ebay fee was .55 + .07= $0.62. Cost was $4.51. I had a gross profit of $1.70.
How much capital does a penny capitalist have if a penny capitalist does have capital? Most people have more capital laying around than they can imagine. Most of us save things because we might need them some day, but if we can develop the skill to buy anything we need for less than we can sell it, we would do much better selling everything and working the capital rather than storing it.
What can I learn from this experience? I have a great source of convertable capital in my garage and in the drawers of my home to get me well on the way to much larger deals. All I have to do is sell it for more than I would have to spend to replace it. For items I will never replace, anything I can get out of it can be considered profit.
The more sources of capital we utilize, the more we seem to find. With a little vision we can see unlimited opportunity!
Starting capital $90.90
Investment return goal >$3.45 with a net profit of > $.32
actual investment required existing junk
Total expenses $4.51
total gross revenue =$6.21
after expenses $1.70
Ending gross capital before deductions $92.60
35% tax of $1.70 profit= $0.60 deduct that from $1.70 we have $1.10 after taxes
after 10% contributions of $0.11 we have $0.99 adjusted capital gain. Our new capital has grown to $91.89 investment and surplus for future deals.