Step Thirty One to a Fortune:
How profits stack up with the sale of CD's
I've made money several times with these Christmas tapes and CD's. I'll keep making more money until I run out of CD's.
This is nice! I keep making more money on those unopened Disney CD tapes my wife found in the dumpster.
Step 31 from the schedule of incremental investments shows an investment of up to $14.40 nurturing it upward to $15.84 or more.
From $250.58 in accumulated capital, I can invest up to $14.40 looking for an increase to $15.84 or greater. My scheduled profit should be $1.44 or more.
Starting capital $250.58
Planned investment risk $14.40
Investment receipt goal $15.84
A profit in motion tends to stay in motion.
We listed yet another set of Christmas CD's on ebay.
Surprise! This next set sold for much less than the previous sets! I sold this CD set for $3.25 plus $2.67 for first class mail. Total sale counting postage was $5.92.
Costs for this transaction totaled about $3.27.
sale price $5.92
Actual investment and expense $3.27
Gross Profit this deal
Ending gross capital (before deductions) $253.23
Will the past result again equal the future result? The third sale was a lot less than the first so the past does not always equal the future. A capitalist will calculate his risk, but things never go exactly as planned. If we lose we lose. This time we made a little.
What did I learn from this deal? It's hard to go broke making a little profit! We only exceeded our goal by a few cents, but we did make our goal and we can move forward to the next higher investment with all that we have learned from the past success.
Sometimes we make a nice profit; sometimes we make a small profit. So long as we make profits we can always make another, larger, investment. Even if we lose money on an occassional investmest, if we manage our risk, we can move on to the next investment without devastation.
I started with $250.58 in reserve. I planned to limit my risk to $14.40 or less expecting a gain to $15.84 or more. After the sale before tax and charitable deductions I had $253.22.
35% tax on profit of $2.65 is $.92. That leaves $1.73
In contribution we pay forward 10% of our increase, , for a worthwhile cause = $.17
After this deduction we are left with a new $1.56 gain.
Now we have $252.14 seed money for new investment experience.