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Subject:  Re: Here's your chance: Balance the Fed budget Date:  1/3/2007  1:39 PM
Author:  Dwdonhoff Number:  200259 of 605993

Hi Rien,

What do you regard as profits?

The value received above ALL expenses (including costs of effort, time, and expertise, in the following example.)

If I build a nice flower bed in my neighbor's garden and he pays me $1000 for it, what is the profit if I only payed $300 for the flowers?

While you don't explicitly specify, I must restrain the topic to ECONOMIC profits. There may be 'spiritual' or other such benefits in your choice of work... but these are far more subjective.

What is the expense (actual or nominal) of the use of the tools? (You might choose to "donate" the use of the tools, but that doesn't mean there is no cost... merely that you are consuming some portion of your own profit by booking those costs to yourself.)

What is the comparable value of an equivalent gardner's time (which reflects his experience, expertise, etc?) Your time?

Certainly a Corporate Attorney, in this example, foregoing 3 hours of billable work to assuage his wife's demand for a flower garden is not economically profiting at all (though there are certainly many other aspects to consider in this case ;~)

Your profit is something less than $700... but how much less will depend on the value of the other expenditures invested.

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