№3 Son Made More Money in 10 Days than I did Writing on Medium for 10 months
Results from the first 30 days of the money challenge I set my kids
The backstory:
They made me change the rules
I had a rethink. I want them to rise to the challenge, so I added two more rules to increase their incentive.
The rules:
- You can buy and sell or invest in anything you like.
- All costs have to be accounted for, trading platform costs, eBay fees, etc., have to come from the £1k and not from your own pocket.
- You win by keeping all the profits you make.
- If you lose money, I lose. You will not be liable for any losses. At the very least, you will learn from it. So it is a win/win for you.
- The winner can keep their £1,000 seed money.
- I’m joining in — that means you have to beat me to win.
What I did with my £1,000
I’m too busy writing to buy and sell stuff. I invested my £1k in the stock market.
I’m not a financial advisor, don’t take this as investment advice.
Back in January, gold producer Centamin PLC reported a surge in their full-year revenues thanks to a solid performance throughout 2020. Centamin saw revenues shoot up 26% year-on-year to $829m.
Yet their share price had dropped from a peak of £2.32 in August to just £1.02 in March. The price of gold dropped from £1,574 per oz to £1,224 per oz in the same period. Like a lot of gold producers, Centamin’s share price followed the downward trend of the gold price.
In April, I was walking the dog and listening to Why Gold? Why Now? on the Rich Dad Radio Show — a podcast with Robert Kiyosaki of Rich Dad Poor Dad fame. He described gold as ‘God's money,’ and asserted that governments were intentionally keeping the price of gold artificially low.
The next day, I read an article about the Royal Mint paying out £400 compensation to a buyer for a delayed order. The Royal Mint had been charging customers for its bullion-dealing service for out-of-stock goods.
”He was told by the Mint the order was delayed ‘due to significant levels of demand for precious metals in recent days.’”
I had another look at Centamin PLC. The firm is exploring upside opportunities and is debt free. What sold me was their leaderships’ commitment to their dividend policy, over the year they would pay out about 10% of their current price.
So, I invested my £1k in Centamin PLC. This is how it has performed over the month.
Don’t forget, I wrote a story about the ‘April Fool £1k Challenge’ here on Medium. I figure I’m allowed to include any earnings from that to my total profit from the challenge —
“You can’t do that, Dad.”
“That’s not fair!”
“Hey kids, it’s my challenge. I make the rules.”
Month 1
Invested: £1k. Profit (on paper): £30.92. Medium article: £42.94
Running total: £1,073.86
What №1 son did with his £1,000
April 12
“I bought a jointer for $899.”
April 13
“I bought a saw for $127.”
April 15
“Spent $94 on marking gauge and callipers.”
April 17
April 20
“Checked out a drill press today for $80. Was going to talk them down to $60 but I thought I would struggle to sell it.”
April 21
“I will be making a live wood edge table.”
“Bought a router for $125.”
April 24
“I’m sourcing wood slabs to build a table my girlfriend’s mum has ordered. I’ve got a coffee table in the garage that needs sanded and sold. Working on my workbench and a drum sander.”
“Spent $115 on clamps.”
Month 1
№1 son: Spent £761. Profit: Zero.
Running total: £239
What №2 son did with his £1,000
April 7
“I bought a domain for £5.94.”
Month 1
№2 son: Spent £5.94. Profit: Zero.
Running total: £994.06.
What №3 son did with his £1,000
April 1
“ I spent £430 on a set golf clubs, bag and power caddy today. Also spent £5 on 3 vintage cigarette tins.”
April 2
“Spent another £225 on an electric golf trolley.”
April 7
“Traded the trolley above for £260 plus a push trolley.”
April 9
“Sold the push trolley and two clubs for £170.”
April 12
“Bought a range-finder for £70.”
“Bought more golf clubs tonight and now have all my money tied up in golf equipment. Time to sell, sell, sell.”
April 17
“Sold my Wilson Pi7 irons for £180.”
April 13
“Sold a golf club shaft for £40.”
April 19
“Made a loss of £1.80 on the vintage cigarette tins.”
“Golf bag sold for £70.”
“Sold a Calloway driver £40. Nike wedges £50. Titleist AP2 irons £260 and a King Cobra set for £350.”
April 21
“One more club sold £130.”
April 23
“Bought two sets of clubs and two trolleys for a total of £215.”
“Sold a trolley for £30 and another for £5.”
“Sold a putter for £50.”
“I have a guy coming tomorrow morning for a set of clubs, £260.”
Okay, okay! This is getting to be a little confusing. Even №3 son didn’t know how much profit he had made at this point. He had banked £200, had about £800 in cash, and he’d stuffed my garage with a variety of golf equipment. He did a quick count in his head and reckoned he could sell the lot for about £700.
I’d be sitting writing at my desk, the doorbell would ring.
“Hi, your son said he had a 3 wood for sale, here’s the £130 he wanted.”
“Hi, I’m here to pick up the two wedges, here’s the £55.”
№3 son was out buying more golf gear, and he was still making a sale.
April 24
“Bought a bag and clubs for £180. The bag and clubs aren’t very good, but there is a Scotty Cameron putter in there that is worth £200.”
April 25
“Turns out the Scotty Cameron putter is a fake.”
April 30
“Sold more clubs for £100.”
Month 1
Bought and sold £1k. Cash in hand/banked £1,205. Profit £205.
Stock still to sell estimated £300 to £400.
Running total: £1,505 — £1605.
The Takeaway
There are three types of people in this world: dreamers, planners and doers. Some people dream of getting going — then they sleep on it. Some people plan on getting going — then never quite get started. Some people just get on and do it.
№1 figured he’d make and refurbish furniture. It took him 12 days to start buying the tools he needed.
№2 son is planning something, we’re not sure what, and we’re not sure when he’ll get started.
№3 son started on day one. He just got on with it. He had some learning points on the way. He took a slight loss on the vintage cigarette tins, which he now realises were a waste of his time. He has learned to be more careful when checking out the goods he buys — he had a more expensive loss on the Scotty Cameron Putter. But, overall, he has done well.
Final thought
Maybe there is a 4th type of person in the world. You know, the lazy guy who writes about the dreamers, the planners, and the doers.
This article is for informational purposes only. It should not be considered Financial or Legal Advice. Not all information will be accurate. Consult a financial professional before making any major financial decisions.
Month three update: