best lawnmower for money image
suhail_08
What you think me saving up money to set up my business? I am 16 and think it will help. I know want to do somthing in busienss in the future.
Answer
No. Do not save for a business. Start one now; it will teach you things they donât teach in school. Get a tax number now.
Examples:
Get a lawnmower; cut grass; deduct lawnmower from income etc.
Example:
THE AMERICAN DREAM.....
An unemployed man is desperate to support his family of a wife and three kids. He applies for a janitor's job at a large firm and easily passes an aptitude test.
The human resources manager tells him, "You will be hired at minimum wage of $5.35 an hour. Let me have your e-mail address so that we can get you in the loop. Our system will automatically e-mail you all the forms and advise you when to start and where report on your first day"
Taken aback, the man protests that he is poor and has neither a computer nor an e-mail address.
To this the manager replies, "You must understand that to a company like ours that means that you virtually do not exist. Without an e-mail address you can hardly expect to be employed by a
High-tech firm. Good day."
Stunned, the man leaves. Not knowing where to turn and having $10 in his wallet, he walks past a farmers' market and sees a stand selling 25lb. Crates of beautiful red tomatoes. He buys a crate, carries it to a busy corner and displays the tomatoes. In less than 2 hours he sells all the tomatoes and makes 100% profit. Repeating the process several times more that day, he ends up with almost $100 and arrives home that night with several bags of groceries for his family.
During the night he decides to repeat the tomato business the next day.
By the end of the week he is getting up early every day and working into the night. He multiplies his profits quickly.
Early in the second week he acquires a cart to transport several boxes of tomatoes at a time, but before a month is up he sells the cart to buy a broken-down pickup truck.
At the end of a year he owns three old trucks. His two sons have left their neighborhood gangs to help him with the tomato business, his wife is buying the tomatoes, and his daughter is taking night courses at the community college so she can keep books for him.
By the end of the second year he has a dozen very nice used trucks and employs fifteen previously unemployed people, all selling tomatoes.
He continues to work hard.
Time passes and at the end of the fifth year he owns a fleet of nice trucks and a warehouse that his wife supervises, plus two tomato farms that the boys manage. The tomato company's payroll has put hundreds of homeless and jobless people to work. His daughter reports that the business Grossed over one million dollars.
Planning for the future, he decides to buy some life insurance. Consulting with an insurance adviser, he picks an insurance plan to fit his new circumstances. Then the adviser asks him for his e-mail address in order to send the final documents electronically.
When the man replies that he doesn't have time to mess with a computer and has no e-mail address, the insurance man is stunned, "What, you don't have e-mail? No computer? No Internet? Just think where you would be today if you'd had all of that five years ago!"
"Ha!" snorts the man. "If I'd had e-mail five years ago I would be sweeping floors at Microsoft and making $5.35 an hour"
No. Do not save for a business. Start one now; it will teach you things they donât teach in school. Get a tax number now.
Examples:
Get a lawnmower; cut grass; deduct lawnmower from income etc.
Example:
THE AMERICAN DREAM.....
An unemployed man is desperate to support his family of a wife and three kids. He applies for a janitor's job at a large firm and easily passes an aptitude test.
The human resources manager tells him, "You will be hired at minimum wage of $5.35 an hour. Let me have your e-mail address so that we can get you in the loop. Our system will automatically e-mail you all the forms and advise you when to start and where report on your first day"
Taken aback, the man protests that he is poor and has neither a computer nor an e-mail address.
To this the manager replies, "You must understand that to a company like ours that means that you virtually do not exist. Without an e-mail address you can hardly expect to be employed by a
High-tech firm. Good day."
Stunned, the man leaves. Not knowing where to turn and having $10 in his wallet, he walks past a farmers' market and sees a stand selling 25lb. Crates of beautiful red tomatoes. He buys a crate, carries it to a busy corner and displays the tomatoes. In less than 2 hours he sells all the tomatoes and makes 100% profit. Repeating the process several times more that day, he ends up with almost $100 and arrives home that night with several bags of groceries for his family.
During the night he decides to repeat the tomato business the next day.
By the end of the week he is getting up early every day and working into the night. He multiplies his profits quickly.
Early in the second week he acquires a cart to transport several boxes of tomatoes at a time, but before a month is up he sells the cart to buy a broken-down pickup truck.
At the end of a year he owns three old trucks. His two sons have left their neighborhood gangs to help him with the tomato business, his wife is buying the tomatoes, and his daughter is taking night courses at the community college so she can keep books for him.
By the end of the second year he has a dozen very nice used trucks and employs fifteen previously unemployed people, all selling tomatoes.
He continues to work hard.
Time passes and at the end of the fifth year he owns a fleet of nice trucks and a warehouse that his wife supervises, plus two tomato farms that the boys manage. The tomato company's payroll has put hundreds of homeless and jobless people to work. His daughter reports that the business Grossed over one million dollars.
Planning for the future, he decides to buy some life insurance. Consulting with an insurance adviser, he picks an insurance plan to fit his new circumstances. Then the adviser asks him for his e-mail address in order to send the final documents electronically.
When the man replies that he doesn't have time to mess with a computer and has no e-mail address, the insurance man is stunned, "What, you don't have e-mail? No computer? No Internet? Just think where you would be today if you'd had all of that five years ago!"
"Ha!" snorts the man. "If I'd had e-mail five years ago I would be sweeping floors at Microsoft and making $5.35 an hour"
How can the Federal Reserve lend money at interest if they're the source lender?
kkmm333
Wont the money supply eventually dry up this way?
But don't banks borrow their money from the Federal Reserve?
Answer
This is actually a common misunderstanding on loans and interest. But, in reality, money can create several times it's value in economic activity.
Let's illustrated with an example...
You have a one dollar bill.
You have two friends without money.
And in this little friendship economy, you all have certain skills of value.
You provides hair cuts and pedicures for just $1 each
Friend A does pedicures and manicures for just $1 each
Friend B does manicures and haircuts for just $1 each
.
And you are all planning to go to a party but are looking pretty shabby.
So Friend A says: "Could I borrow a dollar? I want to buy a manicure from Friend B". You say "Sure, at 100% interest. That is, I want $2 in return." Friend A: 'OK"
Then Friend B says to Friend A: "Could I borrow a dollar? I want to buy a haircut". Friend B says "Sure, but I have to charge 100% interest. That is, I want $2 in return." Friend B: 'OK"
Then you decide you want a pedicure but have no money. So you say to Friend B: "Could I borrow a dollar?". Friend B says "Sure, but I have to charge 100% interest. That is, I want $2 in return." You say "OK"
So let's stop here a second and look at this. In our litte friendship economy, we have a total of $3 in loans and $3 in interest to be paid back. How can we possible pay this all back with a single dollar???
Easy, with economic activity.
- You buy a pedicure from Friend B and hands over $1.
- Friend B buys a manicure from Friend A and hands over $1.
- Friend A buys a haircut from you and hands over $1.
-- then the process repeats until you are all looking pretty spiffy with your manicure, pedicure, and haircut.
But there is still the question of the loans and interest,
- So you take your $1 to friend B and say "Here is half the money I owe you"
- Friend B takes the $1 to Friend A and says "Here is half the money I owe you"
- Friend A takes the $1 to you and says "Here is half the money I owe you"
Then
- you take your $1 to friend B and say "Here is the other half the money I owe you"
- Friend B takes the $1 to Friend A and says "Here is the other half the money I owe you"
- Friend A takes the $1 to you and says "Here is the other half the money I owe you"
So at the end of our example:
- You and your friends got $9 worth of personal grooming
- You and your friends each received and paid $3 in loans and $3 in interest
All with a single dollar!
Another example:
- I have $100 cash and a $100 lawn mower. You have nothing.
- I loan you $100 cash at 10% interest.
- You buy my loan mower for $100.cash
- I hire you to mow my lawn for $10 a week.
- You pay me back $110 at $10 a week.
After 11 weeks:
- You have a $100 lawnmower (after starting with nothing)
- You have paid off $100 in loans and $10 in interest
- I've received 11 weeks of lawnmowing service
- I end up with my $100 cash
So the key point to the answer to your question is:
- A single dollar can create many times it's face value in transactions
- A single dollar could theoretically pay off the entire national debt with enough transactions over time. (OK so it would take a $1 at transaction a second for over 300,000 years to do it but you get the idea)
Hope that helps
This is actually a common misunderstanding on loans and interest. But, in reality, money can create several times it's value in economic activity.
Let's illustrated with an example...
You have a one dollar bill.
You have two friends without money.
And in this little friendship economy, you all have certain skills of value.
You provides hair cuts and pedicures for just $1 each
Friend A does pedicures and manicures for just $1 each
Friend B does manicures and haircuts for just $1 each
.
And you are all planning to go to a party but are looking pretty shabby.
So Friend A says: "Could I borrow a dollar? I want to buy a manicure from Friend B". You say "Sure, at 100% interest. That is, I want $2 in return." Friend A: 'OK"
Then Friend B says to Friend A: "Could I borrow a dollar? I want to buy a haircut". Friend B says "Sure, but I have to charge 100% interest. That is, I want $2 in return." Friend B: 'OK"
Then you decide you want a pedicure but have no money. So you say to Friend B: "Could I borrow a dollar?". Friend B says "Sure, but I have to charge 100% interest. That is, I want $2 in return." You say "OK"
So let's stop here a second and look at this. In our litte friendship economy, we have a total of $3 in loans and $3 in interest to be paid back. How can we possible pay this all back with a single dollar???
Easy, with economic activity.
- You buy a pedicure from Friend B and hands over $1.
- Friend B buys a manicure from Friend A and hands over $1.
- Friend A buys a haircut from you and hands over $1.
-- then the process repeats until you are all looking pretty spiffy with your manicure, pedicure, and haircut.
But there is still the question of the loans and interest,
- So you take your $1 to friend B and say "Here is half the money I owe you"
- Friend B takes the $1 to Friend A and says "Here is half the money I owe you"
- Friend A takes the $1 to you and says "Here is half the money I owe you"
Then
- you take your $1 to friend B and say "Here is the other half the money I owe you"
- Friend B takes the $1 to Friend A and says "Here is the other half the money I owe you"
- Friend A takes the $1 to you and says "Here is the other half the money I owe you"
So at the end of our example:
- You and your friends got $9 worth of personal grooming
- You and your friends each received and paid $3 in loans and $3 in interest
All with a single dollar!
Another example:
- I have $100 cash and a $100 lawn mower. You have nothing.
- I loan you $100 cash at 10% interest.
- You buy my loan mower for $100.cash
- I hire you to mow my lawn for $10 a week.
- You pay me back $110 at $10 a week.
After 11 weeks:
- You have a $100 lawnmower (after starting with nothing)
- You have paid off $100 in loans and $10 in interest
- I've received 11 weeks of lawnmowing service
- I end up with my $100 cash
So the key point to the answer to your question is:
- A single dollar can create many times it's face value in transactions
- A single dollar could theoretically pay off the entire national debt with enough transactions over time. (OK so it would take a $1 at transaction a second for over 300,000 years to do it but you get the idea)
Hope that helps
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