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 Forty to a Fortune:

image of audiotronics phonograph

 

Experiment Title

Fifth Phonograph to be Sold.

 

Vision

Light at the end of the closet!

As I convert the record players to capital, I am getting excited about all the new opportunities that await.

Step 40 tells the story of selling the fifth phonograph.

 

Objective

Step 40 from the plan foresees an investment risk less than $33.97 looking for $37.36 or more.   Our profit should be more or less $3.39.

With $356.16 in reserve investment funds, our course of action is to risk up to $33.97 amplifying it to $37.36 or more. 

This sale moves the fifth of 13 record players.

Step 40

Starting capital                                    $356.16

Planned investment     risk                      $33.97

goal                                                     $37.36

 

Hypothesis

If we keep following a plan and having success, the more success we have, the greater our belief in our ability to accomplish our goal.

 

Procedure

 

I have 9 remaining phonographs to sell.  Each one cost only $3.50 . I listed the fifth unit and watched expecting a good result.

 

This one sold for $98.50 including postage and insurance.

 

Results

$98.50 - $3.50 cost = $95.00  There was an additional $23.68 in expenses.   Gross profit on this one was $71.32 before deductions.

 

 

                                

Ending gross capital  (before deductions)            $427.48

 

Questions

What can I learn from this deal? I learned that with each success, I feel more and more confident I will eventually make the two million dollars I set out to make.  It seemed crazy at first, and the deals were so small, I would go for long periods of time without doing a deal because the end seemed so far away.

Now I am starting to believe the whole discipline will really work.  I believe it is only a matter of time and mathematics until I am a multi-millionaire.

This plan will work for anyone that will follow it!  It is not magic; it is only patience, experience, faith, and arithmetic.

 

Conclusion or Final Result

 

I began with $356.16 in investment reserve.  I was hoping to risk no more than $33.97 projecting $37.36.  These units were purchased together for $3.50 each plus fees and disbursements to sell them. This record player gets us $71.32.  After expenses but before tax and charitable deductions I have $427.48

 

35% tax on $71.32 comes to $24.96. The amount we get to keep of that will be $46.36.

10% for contribution from $46.36  dilutes that by $4.64.  Our final compensation is $41.72.

$41.72 back into our fund brings us to $397.88.   As our reserve grows in excess of our expectations from the  step overview, the confidence level and excitement grows with it.   When we do lose money on a deal, we have enough backing us up to keep going without any interruptions to our investment plan.

Next Step 41