One of the main parts of flipping for profit is to have patience. When I buy items I don’t normally have a planned date when something has to sell by, or I want to start trying to discount it. The reason for this is because I know once I have bought I don’t have much control over when something sells. The vast majority of items breakdown very simply between the supply and demand curve. This thought process takes patience. I don’t know when someone is going to make a decision to buy, but as long as I’ve purchased an item that is in demand and did not pay too much I will be able to make more purchases and sells over time with an inventory that is growing and make a good return on a small amount of money.
I’ll probably get the exact saying wrong, but people tend to over estimate what can be done in a year and vastly underestimate what can be accomplished in ten years. If you keep this in mind and have patience you can grow a very small amount of money into a significant stake over an extended period of time. If I think about the amount I started with in my change jar and what the possibility could be in a ten year time frame from possible ranges it is a very wide range. From a most simple version I will build a framework about how patience would be your friend over time in a situation like this. If I were to get a 30% return on my initial amount it would be almost $500 at that time. As well, I could then make $150 a year off of the inventory moving forward. That would be five times the amount I had when I started every year. I think a $150 a year extra would be a nice thing to have from change that had built up over the years. This amount does not assume using future change to increase the value.
| Year | Amount | 30% return | New balance |
| 1 | $36 | $10.80 | $46.80 |
| 2 | $46.80 | $14.04 | $60.84 |
| 3 | $60.84 | $18.25 | $79.09 |
| 4 | $79.09 | $23.73 | $102.82 |
| 5 | $102.82 | $30.85 | $133.67 |
| 6 | $133.67 | $40.10 | $173.77 |
| 7 | $173.77 | $52.13 | $225.90 |
| 8 | $225.90 | $67.77 | $293.67 |
| 9 | $293.67 | $88.10 | $381.77 |
| 10 | $381.77 | $114.53 | $496.30 |
Another possibility is I am able to get 75% return on my initial amount in the change jar every year for 10 years. This is possible when flipping. This would put me at an inventory of $9698 in inventory which I could make $7200 a year off of before taxes. $600 a month is not life changing, but gives a lot of options for what could be done with it. This amount could pay all of a family’s utilites and still have money left over each month.
| Year | Amount | 75% return | New Balance |
| 1 | $36.00 | $27.00 | $63.00 |
| 2 | $63.00 | $47.25 | $110.25 |
| 3 | $110.25 | $82.69 | $192.94 |
| 4 | $192.94 | $144.71 | $337.65 |
| 5 | $337.65 | $253.24 | $590.89 |
| 6 | $590.89 | $443.17 | $1034.06 |
| 7 | $1034.06 | $775.55 | $1809.61 |
| 8 | $1809.61 | $1357.21 | $3166.82 |
| 9 | $3166.82 | $2375.12 | $5541.94 |
| 10 | $5541.94 | $4156.46 | $9698.40 |
At the end of the day remaining patient will allow the power of compounding to work its magic and turn into something which could be a reasonable amount of money which throws off a good amount a month and in a year. Building an additional monthly and yearly flow not tied to a job is a pillar of creating value for yourself outside of your job to allow you to do other things in life financially. I am excited to see what will become of the amount over the years from the start of just over $36.
