Stories at work is an interesting book by Indranil Chakroborthy for anyone who wants to learn a bit about business storytelling. The introductory chapter speaks of “the art of gathering Gold Dust” which is how rolling money works in simple terms.
What is rolling of money?
At some point in time we all have purchased goods on credit, but some of us might have a fixed shop we go to where we pay the money at the end of the week or so on. The same way some shopkeepers and big retails owners use this credit system.
A simple Example of this is when a local grocery store owner stocks up for FMCG products (soap, toothpaste, etc) for a month but pays only for 2 weeks and has a margin of 0.5%. 0.5×26 giving a Return of Investment of 13%. https://www.calculator.net/roi-calculator.html
The number 26 comes from the fact that the money rotates 26 times in a year out of 52 weeks. (1 year has 52 weeks and when the credit system works on a 2-week credit basis we divide the 52 weeks into 2).
Moreover, a credit system brings in more liquidity to a business allowing you to invest in other commodities and have a free cash flow. This also helps in increasing the value of your money and is known as the “Art of gathering gold dust“.
Why get a job at Starbucks?
Optimize your environment to increase productivity.
Passion is overrated, routine is the King.