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 Five to a Fortune:

image of an Ogio backpack

 

Experiment Title

Two Bags full are Better than One

 

Vision

This is the second part of the three part deal involving backpacks from a combined risk auction.

I won an auction of 4 bags.  One of them was a very nice leather satchel which I intend to use for my laptop.  I sold one, the other two bags I will sell next.  I hope to make all my cash back plus a profit on these bags and keep the 4th bag free of expense.  Again, this is an attempt to get richer by spending more.  I believe this is possible so long as I can buy for less than I can sell.   

 

Objective

The thirty-fifth step in the stairway overview assumes an investment of up to $21.09 aspiring for $23.20 or more.  I would like to sell the second of three backpacks.

From $265.60 in available capital, I will invest up to $21.09 wishing to increase that to $23.20 or greater.  This would be a gross profit of $2.11 or more. Besides the money profit, I'd like to acquire the leather satchel as a bonus.

 

Step 35

Starting capital                                    $265.60

Planned investment     risk                      $21.09

Investment receipt goal                           $23.20 or better

 

Hypothesis

If I can make a profit off 1 bag, it should be possible to make a profit off a second bag as well

 

Procedure

 

I listed an ogio backpack on ebay.  It sold for $10.50 plus $7.05 for postage and handling. The total receipt was $17.55.  I made about $1.75

 

Results

 

gross profit =       $1.75

 

Questions

Was this really a good deal?   I'm not making a lot of money on these backpacks, but I am getting a nice leather satchel out of the deal.

What did I learn from this deal?  If I didn't have a nice surplus to keep me in investment funds, I'd have to group these into one, because I really didn't make as much as my plan calls for at this level. Because the real profit was hidden in the free leather bag, I did experience a profit in the expected range, although the reserve doesn't show it, my experience level does.  Therefore, I decided to move on to the next level. A penny capitalist can make up his own rules so long as the profits keep building.

Remember the journey to a fortune is not a straight one.  It weaves, waves, skips, and jumps all over the place. 

 

Conclusion or Final Result

 

I started with $265.60 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  $1.75 to add to my treasury.

35% tax would reduce this to $1.14

Giving back to the system that enriched me, 10% or $.11 goes to someone or some cause in need.  Now I have $1.13 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   $266.73  to continue our experiments in penny capitalism

 

 

Next Step 36