Best Small Investment Ever!

Comments (20)

Why is it that the older and richer people become, the more conservative they are with their money? Have you ever done or know someone who has made an investment that promised a 10% interest or profit per month? Everyone wants to make above average profits. It is amazing how many people will send their very hard earned money across the world to Nigeria or to Boca Rattan, Florida on the promise of a telephone acquaintance to make them much richer. People give their money to complete strangers in hopes of making more money.

All good investment advisers will tell their clients "If a deal is too good to be true, it probably is." Professionals only make very high returns in areas they personally know very well. This, for them, is a business investment, not a passive investment like stocks, bonds or mutual funds. Real estate and business investments are considered active investments. People who are employed by others do not usually make active investments, because they just do not have the time to watch a business investment, where big profits are always possible (as well as big losses.)

People with small amounts of money come to me all the time and ask: "What can I do with $1,000 that will give me a big return?" Here is the answer. When I was a 21-year-old lad working for my father, I had money in the bank, I owed securities (stocks) and my income was a fixed salary. I saw many opportunities to make money all around me, in the business. My father, like so many employers, wasn't interested. Besides I was trying to figure out how I could make money for me.

At the time, 1971, we had high inflation and prices were going up on many things. My father used metal rings to seal containers, nuts and bolts, paint, and other industrial supplies. I watched prices starting to go up and it appeared that they might even double on finished products that were made from steel. Since the company used these products all the time, buying bigger orders meant buying much more then you needed and having to store it so it didn't get stolen. I used to buy 2 years supply of bolts at a time. Knowing the price was going up, I bought a 4-year supply. Rings took a lot of space so we would buy 3 months at a time. The problem with new rings, being bought and laying around, in storage, was that the workers, taking the easy way out, would take new rings out of the warehouse, instead of cleaning the old rings, which saved the company a lot of money.

My father didn't want to have a years worth of rings around, even though we both knew the price was going to continue going up. We came up with an idea. I would buy, with my own money, the extra inventory, the amount above the companies normal order size. My investment inventory would be stored in a separate locked area in the warehouse. When the company needed more rings or bolts, it would buy them from me at the then current market price. I made $1,500 on my $5,000 investment in just six months. That was a 30%, no risk profit in just half a year. Now I was hot.

When I got married, and I used more toilet paper and toothpaste than I did before, I decided that I should repeat the process that I learned as a boy. When I was a boy toilet paper was 10 cents a role. If you do not know what it is now, take a look. I bought 5 cases of toilet paper and put it in the garage. I knew that paper prices were going up. I not only got the increase in price, I got close out quantity discounts by the case. Do you know that dog and cat food by the case is 10% off? Then if you wait for when Friskies has a sale or close out, then buy large cases; you cannot believe what you will save. If you can get a distributor or wholesaler to sell direct to you, another 20-33% is possible. You might check the price at Costco. It may be cheaper than what the wholesaler will sell it to you for.

You only buy items that you know you will use yourself, personally. You are not buying for resale. You are buying a two-year supply of things you know you will use, for sure. Toilet paper is one of them. (Make sure you try the brand out, to see that you will like it.) Smart and Final has many things in bulk. Compare prices at Costco, Smart and Final, the 99-cent store, and if you can find the distributor that the 99-cent store buys from in Downtown LA, you will really be buying cheap.

First step. Make a list of everything you buy on a regular bases. List non-food items, bathroom items and dry or canned food items. Do not buy food the rats can get into. Grains must be in steel drum with bags. You will be shocked at how much 20 lbs of rice will cost you compared to a one pound bag, about a quarter of the cost or less. Do not buy clothing, because of change of styles and weight. You can buy men's socks and underclothing when you see a real close out at 80% off. Men wear the same style all their lives and their weight tends to be constant. Do not do this for children or woman. Things change too fast.

Second step. Price shop so you will know what are the good prices and bad prices. Do not buy yet, just price shop.

Third Step. Decide how much inventory you want to have, how much money do you have to spend and how long it will take you to use it all up. Where are you going to put it so that it will be safe and dry? Not a public storage place, please. The rent will eat up your volume buying profits, real fast.

Fourth Step. Look for close outs so you can buy cheaper than the best price you planned on and then have fun buying.

Hidden Bonus: There are also non-profit advantages to this program that you should be aware of. In case of an economic depression you have food. That means if you loose your job, you still eat. Your unemployment check can then go towards the rent, gas in the car, car payments, and fresh food. You will already have most of the toilet items and other things you will need, until you get a job.

In case of a natural disaster or a teamster strike you will have your well-stocked private supermarket with those needed items. The IRS closed down Howard Ruff, a newsletter writer in the 1970's. They attached all of his bank accounts, and locked the front door of his store. Howard had 12 children, no income and no money in his pocket. He did have big food storage, which fed his family while he took a month to decide what his next move was going to be. He was able to think his problem out without panicking because his family was fed, and he could postpone his mortgage, utilities and other bills for a few months, before he had big troubles.

So be smart. Invest in a food storage program. Only buy what you will use, and do use. Buy in quantities that you will use up in 2 years. Do not buy a 5-year supply of anything. Shop for the best price, and then wait for a better deal than that. Then you have made a safe and profitable investment, while at the same protecting your family from emergencies.

About the Author

Willard Michlin is an Investor, Business Broker, California Real Estate Broker, Accountant, Financial Distress Consultant, Well known Public speaker and Administrative/Business Consultant. He can be contacted at his Ventura, California office by calling 805-529-9854 or by e-mail at See other article by Willard at


Christian Conservative Patriet ? 23.01.2013. 23:43

How much longer must I continue to wait until my investment pays off? About a week ago, I got an email from a Nigerian prince named Nsonowa. We chatted for a little bit, and he told me how he needed a small investment of only $5,000 to create a successful African restaurant chain restaurant that will boom.

Unfortunately, he has been hard to talk to ever since I sent him that $5,000 check. He assured me that I would be receiving $1,000 a week for the next couple of years by doing this investment.

What the heck is going on?

Christian Conservative Patriet ?

Admin 23.01.2013. 23:43

I hope the Internet doesn't get deleted, or Nsonowa's country will never have a good economy again. FACT


Old Man from Scene 24 13.04.2012. 03:20

When setting up a new church, how long before their business plan usually expects a return on investment? Once established, what is the minimum return on investment most preachers are willing to accept before they sell the church organization to a reorganization preacher or shut down?

Do investment preachers ever stage hostile takeovers of small, marginally profitable churches?
Yes lost hell bound sinners often make huge cash donations. But I have no idea how they figure that income into the business plan.

Old Man from Scene 24

Admin 13.04.2012. 03:20

Tell everyone they're possessed by demons, then send your 3 daughters around to perform exorcisms. It's nearly 100% profitable.


Jason 28.02.2009. 05:47

Is now a good time to buy a side of beef? As extra hours at work dwindle, should I get ready for something worse? I doubt that i will get laid off like many others already have, but I am thinking of making this small investment to be prepared.


Admin 28.02.2009. 05:47

If you have a freezer to store it, sure. That's what I did when my husband was let go from his job three weeks ago. I used what ever money I had for groceries and hit the cheapo stores for cheap meats and pantry stuff.

Buy staples like
flour, sugar, salt, baking soda/powder and oil for cakes, breads and cookies so you don't have to buy them.

canned veggies and soups, plain rices, pasta, canned meats like tuna, chicken, spam, cheap corn muffin mixes, mac and cheese boxes

frozen veggies like stir fry in large family size bags, bags of froz fruit, cheap sausages and hot dogs

Money saving tips I've learned over the years.
1. Keep powdered milk on hand for cooking purposes. Keeps you from running to the store for a cup of milk.
2. When cleaning fresh veggies, put all discarded ends, tops, seeds in a pan of water and simmer for 4 hours. Strain well and save broth for soup base to use later (freeze)
3.Buy flour and sugar stuffs in HUGE bags and use 2 gal zip locks to keep them fresh. Tupperware works just as well.
4. Buy Barilla pasta Plus. It has protein and omega 3s so you can use less meats for protein.
5. When making pasta, drain, rinse and coat with olive oil. Store pasta in a ziplock bag for many uses. It can last up to 2.5 weeks in the fridge so you can make many dinners and sides with one box.

Good luck and I hope you don't loose your job, like the rest of us.


Marcus S 25.02.2012. 16:58

Do I need to file tax return for child's custodial investment account? Our kids have some small investment accounts which produced very small dividends. The 1099-Div form is addressed like this:

My Son's Name UCAUTMA
Address, etc...

Is this considered income for me?
If not, I assume that it is below the income limit and I wouldn't have to file for my children, right?

Thanks for any help.

Marcus S

Admin 25.02.2012. 16:58

This is NOT your income. If the W-9 was filled out correctly, the SSN on each account is the child's. The whole point of an UTMA is to gift the assets to the child.

Once again, I am horrified by Tro's comments. Nominee interest? This is NOT nominee interest. Daniel's are worse.

See IRS pub 929, but the basic rule is:

1099-INT, 1099-DIVs only, add them up. If this is the child's ONLY income and it's less than $950, it's "free money." If the child has a job and made less than $5500 (out of $5800), the child can have up to $300 of investment income before triggering a filiing requirement.

If the child goes over $950, then they have to file. For this kind of income only, you can use form 8814 and include it on your tax return (paying 10% for the second $950 and your tax rate above that) or file a child's return and add form 8615 if it goes over $1900.

If you ever get a 1099-B, you must file a 1040 for the child because sales cannot be reported on the 8814.


cholentpot 05.06.2008. 10:07

Anyway to have my google adsense money sent to a paypal account and not sent to me via check? I don't want to receive a check with the money as it will cost half the check to cash it due to it being in foeriegn currency. Is there anyway they can either pay me after say 3 months or via paypal etc?
I want to place all this money aside and use it towards a small investment.


Admin 05.06.2008. 10:07

NO -- Google does not pay via Paypal, and doubt they will ever use this option.

Check if other payment options are available in your country. Google in some can send via electronic funds transfer, while others are eligible to receive via Western Union.

You can notify them that you want the money held until it reaches a certain amount, and that's the time Adsense will pay you

Read the payment options


whviper0055 20.06.2006. 15:27

I was just wanting to see if anyone was looking for a home based business? This is a new company from the small town of russell KS.These are some of the very best products I've ever used. The comp. plan is easy to understand and explain so if you would like more info let me know. Yes there is a is a small investment. Just say yes in the answer.


Admin 20.06.2006. 15:27

I am looking for a home based business. Please feel free to look at my profile and write to my yahoo email address.


The 10th Dimension 13.12.2012. 21:49

Is UConn a good school to help start a career in Investment Banking? I am currently looking at schools to apply to for a career in investment banking.

A lot seems attractive about the University of Connecticut's Business School. First off, it costs about a fifth of what top business schools cost. Secondly, it seems as though the average graduate leaves making $90k a year, which is comparable to a top business school.

But despite its high rankings in college literature, I'm still unsure of whether or not going to UConn is a good idea for helping me start out in investment banking.

Do any investment bankers come from UConn? Or are they all from Harvard and Wharton?

The 10th Dimension

Admin 13.12.2012. 21:49

Depends on your student debt tolerance...

Complete thorough realistic research. Maybe accounting, engineering, law....

Pick a job where you don't start working bankrupt with debt. You must earn enough to support a family in a major City ...thats $200k plus/yr. Do not low ball your life and your future family.

Almost 50 million on food stamps, ~20% of males 25 to 54 yrs not working, lowest SATs in 40 years, debt to GDP over 100% and whats uncle sams answer to America's problems? Why more fancy jet toys to attack fictional enemies, of course and adding a trillion dollars of debt to prop up financial markets artificially. What a mess!

America You are On Your Own. YOYO's the word. Never forget it. Take control of your own lives and ignore what ever solutions the politicians and corproations thow around as solutions.

Abandon consumer spending obesity addiction. Cut your lifestyle in half or less...small house or car or no car .. always have a second job cause the one you have can/will disappear and invest over 50% of your income if you can .... stay with your parents....parents move in with your kids...Rent with friends...Live like the wage you make today could be the last you'll earn, always.


john 06.06.2011. 22:44

Which of the following statements is not correct? Organizations may leverage their platforms to develop web-based applications, products, and services.
B. Information technology (IT) enables organizations to survive in the face of business pressures.
C. To succeed in today?s environment, it is often necessary to change business models and strategies.
D. IT requires small investments over a long period of time.


Admin 06.06.2011. 22:44

D) is not true. IT requires ongoing investment as needed to keep up with the ever changing and improving software and hardware technology


Brad 14.03.2012. 01:28

How to invent a product with no investment money ? I have a long list of great ideas for inventions. I want to officially invent one of my products, and to do that I would need investment money for a patent attorney and other things. So my question is, is there any way to borrow money or to somehow receive money to invest in my inventions ? I'm only 17 and just don't have the money.


Admin 14.03.2012. 01:28

Many small inventors file a provisional patent application ($125) to reserve their rights for up to a year and then (confidentially) shop the invention around to various investors who will be interested in helping develop a product and to fund the necessary protection for their investment, namely getting the actual patent filed (thousands of dollars). Consider "angel" money from people who don't expect to ever get it back (but they want to help you succeed for other reasons), as well as venture capital, where they are willing to risk it but really want to get rich on your ideas.

You want to keep your invention as confidential as possible so you can minimize the risk that someone will hear about it and beat you to the market, knowing your patent won't be enforceable for at least three years.


Sandman 09.07.2008. 03:18

What do i need to start a small recording studio? I would like to move to the denver area and start a small recording studio. I am not looking to be huge. I would like to entertain the idea that i could make 40-50K a year recording local talent preferably in the denver area. I would like to specialize in rock/metal/alternative music. I notice that denver has a few clubs where acts like this perform. anyone from denver? can you tell me what the music scene is like?


Admin 09.07.2008. 03:18

Greetings, a facility that could generate 50k a year in profit would probably cost you somewhere between 300 - 400k. Overhead for recording studios is outrageous. Insurance is expensive, electricity is expensive, the buildout is just downright painful and you'll pay commerical rates for your phone, internet and other services.

It is an investment just like any other investment. Tell me what investment returns 50k a year that doesn't require a tremendous amount of energy and start up capital? If it were that simple, ever one would do it.

Overhead for something like this could easily run you 5 - 10k a month depending on how much you have to finance. You might be thinking that 10k a month isn't much because you'll charge $75/hr and always be booked but that kind of money is a lot these days and people willing to shell it out want top notch experienced engineers and modern, well run production facilities.

Go to Denver's Craigslist and look at the section on Creative Service and see what other studios in the area are charging.
Here's one I found:
Top quality equipment for top quality sound

Mics from Neumann, Peluso, AKG, Audix and others.

Processing with SSL, UAD and more.

Studio rates start at $35.00 hr, location recording rates will be quoted.

Results are guaranteed!

$35/hr isn't much money and you'll never make 50k that way. I also noticed that some very nice places were only charging 50/hr. Places that had some really nice setups and amazing gear.

It seems to me that if studios were in demand in Denver then they would charge more.

Yeah, money and lots of it - that is what you'll need.


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