The story of the Cinnamon ToothPick Store helps to illustrate the 3 Laws of Personal Finance and 5 Unchanging Principles for Money Managers:
Five Unchanging Principles for Money Managers and Social Business Owners
1. Knowing Why is Helpful
2. Good Work Always Pays
3. A Little Planning Goes a Long Way
4. Spend Less – Save More
5. Invest in Yourself First
6. Pay it Forward (you won’t be able to count the blessings)
The Cinnamon ToothPick Guy
In 4th grade, I was the Cinnamon ToothPick Guy and my business was booming. At that time (back in 1971) my mom was my #1 investor and she was also the supplier of the cinnamon oil (cinnamon oil is a controlled substance in some jurisdictions because it can melt plastic and cause severe burns to skin, lips, eyes, and other soft tissue).
Cinnamon Oil is Dangerous – and Expensive!
The cost for 30 ml of Cinnamon Oil in 1971 was $3.27. Today, just for fun, I stopped by Walgreens to make a batch of my famous Cinnamon ToothPicks. The cost for the Cinnamon Oil today: $89.56 for the same 30 ml container.
Cinnamon ToothPick Store is Closing
Cinnamon Toothpicks can’t be sold in 2013 for the same price as in 1971. The license you need to sell Cinnamon ToothPicks and the liability insurance required to get the license is, well, MORE. Back in 4th Grade, Osha, EPA, and the IRS weren’t paying much attention to my Cinnamon ToothPick Store. Today, I can’t afford to sell Cinnamon ToothPicks so the store is closing.
Cinnamon ToothPicks and Other Social Business Ventures
I learned a lot in those early days of business. The future belongs to the masters of Social Business. A lot has changed, yes. But even more remains the same. Personal Finance still has a few basic rules that will never change.
The first law of Personal Finance: Spend Less Than You Earn – Save More for What Matters Most