Step Forty to a Fortune:
Fifth Phonograph to be Sold.
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.
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.
Starting capital $356.16
Planned investment risk $33.97
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.
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.
$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
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.
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.