1) You have at least ONE Idle Capital Asset at your disposal:
Look around you…your car, that extra bedroom, your washer dryer unit, your parking spot if you live in a metropolitan area, your utility vehicle if you drive an SUV, Tools if you’re the handy type, a deep freezer, a garage, and food if you’re the kind that buys food in bulk and a good chunk of it expires on an almost monthly basis. Take fashion, the new trend in peer to peer fashion lending, gardening and horticulture to name a few.
2) Each Idle Capital Asset can easily become a revenue source:
That extra bedroom can pay your mortgage via airbnb, and it takes minutes to get setup and listed on airbnb. That vehicle could pull you hundreds of dollars per week via uber or lyft. That utility vehicle could pull you hundreds of dollars per week from pHlatbed. Your garage could do the same, have a washer/dryer? You’ll be surprised at how many people don’t and are willing to shell out for safe access to one. Same with a parking spot in the city, or your beach house. Fashion, gardening, and car sharing to name a few.
3) Idle Capital increases in value over time:
As your expenses on your idle assets decrease, turning them into revenue sources only increases their value from your wallets point of view. Pay off the car and watch it pay for it’s insurance, maintenance and even the car payment. It pays for itself. The extra bedroom pays your mortgage. There are entire real estate purchases around the airbnb model where people buy houses simply to list them on airbnb and watch it pay for itself. This alone has the possibility to change accounting rules. What was a liability now is an asset…even after depreciation has been accounted for.
4) It encourages minimalism, which is also good for your wallet:
People often confuse ownership and hoarding. That $350 drill bit you bought because you need to put a few pictures up will never see the light of day until your next house relocation. Why not let a tool like bscrappy (now defunct) show you who has a drill bit nearbuy you can rent it from for $10 for the day? You just saved yourself a couple of hundred dollars, the time, gas, energy, storage space, extra item to worry about, and aggravation. Your idle capital lets you focus on the essentials, encouraging minimalism and eliminating the tendency to “collect stuff”. If you own one, even better, you can rent it out to anyone local who needs one for the day.
5) It disrupts traditional business models and encourages trust:
U-Haul advertises $19 per day truck rentals but they never mention the $75 initial rental fee, hand truck rental charge, fuel surcharge, mileage surcharge, insurance surcharge, delivery charges, taxes and other associated charges. Does this encourage trust? That’s the traditional business model for you. Furthermore, the amount paid does not directly benefit the community….it goes into the “market”…some like to call it wall street. So even if your friend works at U-Haul, you best believe they’re not seeing any of that money. On the other hand, imagine you needed to move and a local person helped with the move through Phlatbed. They get paid immediately the move is completed at your agreed price and schedule. Compare the trust to U-Haul that promised $19 per day but you ended up spending $180 to the neighbor who you agreed to spend a flat $100 with and that’s exactly what was paid, in addition to making a new friend. Who knows you may even end up being facebook friends too!
That being said, it’s time everyone understand the meaning of idle capital and it’s applicability on an individual basis.