How money creates money.

One of my friends earns pretty well just by following this simple logic.

Let me explain you this through one of the examples.

Image credit — Google

The price of this roasted chana would be somewhere around 80 rupees per kilogram (if that is bought in bulk, that could be reduced up to 60 rupees per kilogram.)

Let’s now create money using the same base.

Take

10g of Chilli powder = 2 rupees

10g of coriander powder = 2 rupees

5g of cumin powder = 2 rupees

20g of Chaat masala powder = 5 rupees

20 g of mixed ginger-garlic and tomato powder = 5 Rupees

And Salt costs negligible let’s not mention it.

Mix each of the ingredients well,

Total ingredient cost = 80 + 16= 96 rupees.

Now package it like this below,

Image credit — Google

Which costs you,

Packaging cost + Nitrogen gas + preservatives = 5 rupees per 100g of a package.

Let’s make 10 such packages of 100g

So the total investment would be 96 +50 = 146 rupees.

The end product would be so delicious that according to my experience will be sold a minimum of 40 rupees per 100g pack.

40 × 10 = 400 rupees.

400–146= 254 rupees.

So here you made 254 rupees as a profit on 146 of investment, around 1.7 times more.

Now imagine you selling lakhs of such packages.

So here you generated money by yourself.

Actually as per my experience, Indian people consider packaged food to be branded and imported, and ready to pay more.

This is how money makes money.