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 Three to a Fortune:


image of 12 assorted picture frames

Experiment Title

Picture Money for Picture Frames


I still had a good supply of picture frame molding stored in my attic from the  frame shop I owned years ago.

A good penny capitalist will capitalize everything that is not serving a good purpose in his life.  This old molding from a past life was just taking up space.  It could be converted into working cash. 

Not everyone can build and sell picture frames, but almost everyone has multiple special skills that can be utilized to add value to something else to convert raw materials and labor into profit.  These are the things a penny capitalist does to build his capital base as he learns to make money with money.



The next step (number 33) in the overview of investment goals is to reduce the junk and clutter in my life by repair or invention to convert it from  an investment of up to $17.43 and sell it for greater than $19.17.

I've made profit on these frames in the past.  There is every reason to believe I could do it again.  With tools I already have, and materials on hand, I'll make a few frames and see what happens.

When I am finished I should have money where once I had clutter.

With $254.28 in reserve capital I will invest up to $17.43 in full hope turning that into a sum of $19.17 or greater.  This would be a profit of $1.74 or more.  Penny capitalism is an adventure where the entrepreneur experiences many wonderful new things, but it also makes sense to utilize all the special skills he or she brings to the experiment to make money from raw materials.  For me one of the skills I have is picture framing; for others it will be an infinite number of things.


Step 33

Starting capital  base                           $254.28

Scheduled  risk                                    $17.43

Investment target                               $19.17



If I add value to raw material, I should be able to sell the result for more than the cost.




I built a dozen small picture frames suitable for photographs or crafts.  I then listed these frames on ebay.



I sold the 12 frames for $16.39 plus an additional $8.00 for shipping. Total receipt was $24.39.

I had $6.72 in expenses.  My gross profit before tax was $17.67


sale price                                                                  $24.39

Actual investment  and expense                                   $6.72


Gross Profit or loss  this deal                                     

was $17.67


Ending gross capital  (before deductions)            $271.95



Should I use special skills I have to add value when I am trying to show others without those special skills how to make profitable investments?  Yes, I have to utilize special skills.  Everyone has some special skill if they will just look closely at themselves.  Even if they have no special skill, they can acquire them.  This is the nature of capitalism. 

What did I learn from this deal? I learned that applying a little skill to raw materials can be lucrative. 


Conclusion or Final Result

Labor combined with raw materials can create capital greater than the sum of the two elements.

I started with $254.28 in available capital. I limited my risk to less than $17.43  looking to increase that to $19.17 a profit of greater than $1.74.  After this sale before tax and deductions I had  $271.95

35% tax on profit of $17.67 would be $6.18.  That leaves $11.49

Doing our part as a good citizen we pay forward 10% or $1.15 to make the world a better place.  This renders $10.34 for additional investment.

When it's all over we have $264.62 in our treasury for investment and surplus to back us up on the inevitable future loss.



Next Step 34