Debt Views

Below, we explore how $1000 dollars can turn into $1 million dollars in 9 transactions. This is not just technical theory and keep in mind that anything can be an investment. It doesn’t have to be a security or government bond. Absolutely anything can be classified as an investment if you make a return.

Interest upon interest grows money exponentially, so below lets see how we can grow our starting balance of $1000 dollars into nearly a million dollars in a few easy transactions.

$1000 — purchase a cheap 4 cylinder car and clean it thoroughly, make sure it is sound mechanically and that you bought it really cheap, sell for $1990

$1990 — purchase another car but a later model, make sure you paid much less for it than it is actually worth, really do a hard deal. Sell for $3900

$3900 — purchase another car but a later model, make sure you paid much less for it than it is actually worth, really do a hard deal. Sell for $5900

$5900 — purchase a late model car from the auctions. One that has slight but repair-able damage. Clean it up and prepare it for sale. Find a fussy buyer that will pay well. Sell it for $11,000

$11,000 — purchase a large corner block of land, use the $11,000 as the deposit. Paid $60,000 for the land. Spend $400 on sub-dividing the land. Sell each block separately for $37,000 each, repay the loan and profit is $25000

$25,000 — purchase 2 more similar corner blocks of land subdivide each of them and re-sell for $37,000 each 2 corner blocks now become 4 — Profit = $56,000

$81,000 — purchase 4 more similar corner blocks of land and subdivide into 8 small blocks, sell each for $37,000 Profit = $112,000

$193,000 — purchase one large block of land and build 3 apartments. Sell apartments for $200,000 each Profit $210,000

$403,000 — purchase 2 more blocks of land, build 3 apartments on each of them. Sell apartments for $200,000 each Profit = $420,000

Result = $823,000 in 9 transactions…..the magic of compounding.