Library of ideas
Library of Ideas

crucible of experience
Crucible of Experience

stairway to a fortune
Stairway to a Fortune

Treasury of Tales
Treasury of Tales

Vault of Old Videos
Vault of Old Videos

Portfolio of Motivation
Portfolio of Motivation

Table of Negotiation
Table of Negotiation


Additional articles:

Get Rich After Retirement

Never Break the Copper Rule!

Barter Page

Step Thirty Four to a Fortune:

Image of a Jansport backpack

 

Experiment Title

Back to Backpacks

 

Vision

The backpack I sold in deal twenty worked out well.  If I come across a good deal on backpacks I should try to make a little more money on these things.

I stumbled upon an auction where several backpacks were offered.  Among them was a really nice black leather briefcase which I needed to carry my laptop to claims adjuster certification classes I had to attend on a regular basis.

The ideal penny capitalist will buy things he needs for less than he can sell them for.  In this way, the more we spend, the richer we get.

 

 

Objective

The next step (number 20) in the stairway overview suggests an investment of up to $19.17 expecting $21.09 or more.  I would like to invest in backpacks and acquire a leather satchel for my laptop at the same time.  If I buy well, I should make a cash profit and acquire a satchel without expense at the same time.

From $264.62 in available capital, I intend to risk up to $19.17 in hopes of growing that to $21.09 or greater.  This would be a gross profit of $1.92 or more. In addition to the cash profit, I'd like to acquire the leather satchel as boot to the deal.

 

Step 34

Starting capital                                    $264.62

Planned investment     risk                      $19.17

Investment receipt goal                           $21.09 or better

 

Hypothesis

If I buy for less than I can sell, the more I spend, the richer I get.

 

Procedure

 

I bid $25 for 5 bags at auction.  I won, but there were really only four bags.  When I reported the oversight to the auction house, the refunded 10% so the cost was reduced to $22.50. One of the bags I wanted to keep for myself.  This left three bags.  For purposes of breaking it into steps, I'll allocate $4.50 cost to the Jansport bag, $9 to the Oggio bag, and $9 to the Tumi Ariba carry on bag.

This step will account for the Jansport bag.

I listed the bag ; it sold for $5.50 plus $9.45 for shipping and handling.  All of my costs for acquistion, ebay, and shipping came to $8.45.

Results

Total recieved: $14.95

cost                    4.50

expense               8.45

gross profit =       $1.50

 

Questions

What other benefits do I gain from this deal?   I get a leather satchel for my laptop that would cost up to $100 if I had to purchase it retail.

What insights into future deals did I receive?   I didn't make a lot of money; I didn't even make my scheduled profit, but I did get the really nice leather satchel for my laptop.

Did spending this $22.50 really make me richer than I was before the purchase? I still have two more bags to sell, but if the next two deals go as well as this one, I'll make a few dollars more than the $25 I started with and I'll have a super nice bag for my laptop.  Yes, if I can buy for less than I can sell, the more I spend the richer I get!

 

Conclusion or Final Result

 

I started with $264.62 in capital. I was looking to risk $19.17 looking for $21.09 or more.  After the sale before tax and charitable deductions I had  $1.50 to add to my treasury.

35% tax would reduce this to $.97

Giving back to the system that enriched me, 10% or $.09 goes to someone who could use the help.  Now I have $.88 in keepable gains. 

We can't always depend on small gains like this to get us to wealth, but no one ever went broke making a small profit.  We'll do better!

We have   $265.60  to invest in the next idea!

 

 

Next Step 35