Myfictions Blog

The Parable of the Pipeline

The Parable of the Pipeline

Once upon a time, in a village of Italy lived two young boys-Pablo and Bruno. They were ambitious guys who had dreamed of becoming the richest person of the village. They got the chance to fulfill their dream when they were selected to fill water in a tank at the central part of town. For a bucket of water they were to be paid a penny and they started the work instantly. However after some days Pablo became dissatisfied with the work as his hands were injured due to the regular lifting of bucket for a long distance .Hence, he made a plan to make a pipeline to for transporting water and told about it to Bruno. But Bruno rejected the idea as he was earning enough money that was able to fulfill his basic requirements of food and cloth. Also the idea of pipeline was a new one and he thought that it would not work.Inspite of this, Bruno didn’t get discouraged. He would work few hours a day to carry the water and invested the remaining time to construct pipeline. Seeing the work of Pablo, the villagers and Bruno used to tease him saying “Pablo, the pipeline man.”

           Bruno was earning double than that of Pablo by carrying bucket.The earning was enough to sustain daily expenses as well as make show offs. Seeing Bruno’s show off, people called him “Mr. Bruno.”While working in the pipeline, Pablo was earning less, but in that labor he had dreamed of his golden future. Every day he continued the work due to which half of the pipeline was finished. On the other hand, due to the regular carrying of bucket, Bruno’s backbone was bending and he started hating his job. He had to that bucket carrying job although he was sick and helpless. There after the villagers started teasing him saying “Bruno, the bucket man.”Finally, the pipeline was constructed and Pablo didn’t have to carry bucket like Bruno. The pipeline would carry water for Pablo even if he didn’t carry bucket. Seeing this villagers then called him “Pablo, the miracle maker” instead of “Pablo,the pipeline man.”Because of the pipeline, Bruno lost his job which made Pablo sad. Hence, Pablo planned to make another pipeline with Bruno’s company and this time he agreed because he had seen the power of the pipeline.Years passed and both of them enjoyed the continuous flow of income in their bank account brought by the pipeline in spite of the fact that they weren’t working.

     Bruno,the bucket carrier refers to those people selling their time for moneywhile Pablo,the pipeline man,refers to those people who make enough passive income even without working.Based on this story,what’s your category?A bucket carrier like Bruno, or a pipeline man like Pablo?If you don’t want to involve in the rat race of trading time for money,you must devise out the ways that generate passive income.Unfortunately,the tragedy is that our society mostly consists of bucket carriers.The concept of secured or a dream job is just an illusion as we can be fired from our job at any time.Pablo was able to point out this weakness of a bucket carrier and hence,he made pipeline.This helped him generate enough money 24x7 without worrying about the need to work.Our surroundings including our family and relatives give us the mentality of a bucket carrier like Bruno.And the question is how much do  we earn by doing so?

      In a survey made by the Parade Magazine in the USA,an average American’s annual income is $22,500 after deducting 20% tax.That means people suffer financially even in a country like the USA since they’re also bucket carrier like Bruno.The fact becomes more creepy as you even the highest paid professionals like doctors,pilots, and players go through hard times.The simple reason behind this is the fact that they don’t diversify their income by investing in multiple sources of income.Darryl Strawberry ,an American baseball player, is its living example.His yearly income was $5 million,and before turning 40,he had earned $100 million.He spent his earnings extravagantly by purchasing expensive house,car,and luxurious items.That menas he wasted money in buying liabilities instead of building assets.He was banned from games because of doping addiction that made him go bankrupt ultimately.Had he invested only 10% of his income in building income pipelines like share market,real estate or any other income pipeline,he would have been able to earn $20 million to $100 million additionally.

                 To be financially free,at leat 10% of our income must be invested in passive sources of income .Thi can be done by leveraging time and money.What’s leveraging then?Being able to solve a very difficult work without much or vey less effort is called leverage.Take an example of a truck with flat tire.It may take 50-60 people to lift up the truck to change the tire,but the same work can be done with the help of a lever alone.In very minimal effort,lever gives maximum output.Investing money in high return fields brings compound effect causing our investment to double or even triple.Warren Buffet had also earned his first $100 million through compounding in the stock market.In 1965,the per share value of Berkshire Hathway Company was $19,which reached to $70,000 towards the end of 1998.That $1000 invested in 1965 compounded  to $51 million .Compound effect takes time,but the return is always very high.Hence,stock market,bond and real estate are the best investing sectors to gain maximum income in the long term.

       While investing in these sectors,the ‘Rule of 72’ should be applied to find out the output of our investment.What’s the ‘Rule of 72’ ?It’s a simple and scientific method of finding out the number of years taken by our investment to double ,assuming an annual profit growth up to a certain point.For instance,if you invested $10,0000 in the stock market and its annual return is 10% .When you divide 72 by annual return of 10%,the result is 7.2.That means $10,0000 gets doubled in  a period of 7.2 years.You must be able to invest 10% to 20% of your income in building extra pipelines of income.This will save you from becoming a bucket carrier like Bruno.According to a research, millionaires didn’t acquire any ancestral property.Instead,they’d also invested 10% to 20% of their income in building extra income pipelines that compounded the profit in the long run.Building multiple sources of income,therefore,is important to becoming financially free.Its best part is that the money works for you instead of you working for the money.

     But what if you have no money for investment?At that time you must invest your greatest asset,your time,that will bring propounding changes than than brought by money.How to invest time for this purpose?Let’s see a simple,yet most effective method of time investment.A day ahsa 24 hours which has 1440 minutes.Take out extra time,two hours in the morning and in the evening.Also three hours each on Friday and Saturday.

  2 hours/5 days=10 hours

3 hours every Friday and Saturday=6 hours

Total extra time= 10 hours+ 6 hours=16 hours

     That means you’ve 16 extra hours each week. Invest this time in studying e-commerce, the world’s best platform for high income.E-commerce has been nicknamed as ‘E-compounding.’ A person able to make proper utilization of internet can earn profoundly within a few years which is a very short time in comparison to the long term pipeline investment, which may take 15-40 years to yield profit. In a survey of 2003, it was found that nearly one billion purchased $1 trillion worth of goods from e-commerce. This shows how big is its market. In the recent years e-commerce has been taunted due to the lack of honesty among the customers. Though it has been introducing ludicrous offers along with a heavy discount, they’ve missed making a long lasting relationship with the customers. Let’s see an example to be clear about it. While watching a YouTube video, if an attractive ad pops up on the screen, related to entertainment or movie, we rarely give it a damn.Consequently,we skip it without watching even for a few seconds. The same thing, in contrast, if recommended by our friends and relatives, we watch that instantly..The simple algorithm behind this logic is the trust we’ve upon our friends and relatives. That means extending relationship must be put ahead than expanding relationship.

         The best part of e-commerce is the investment of time rather than money. For this, as said before, you’ve to take out extra two hours every day, extend relationship with people, and recommend your products/services. This will help you gain the referral award which is the simplest, excellent,and the easiest way to creating income pipeline. Assume that you’ve four hundred people in your link who spend Rs.4000 per month consuming the product you recommend them. Look at the calculation below to be clearer about it.

       400 people xRs.4000=Rs.16,00000

      You get 5%  of the commission spent on the purchase of those products/services

    That means 5% of Rs.16,00000 is Rs.80,000

To get all this done, you simply need to invest your time, your greatest asset.

    What is some day you have to quit your job due to some bodily dysfunction or some unforeseen circumstances? How will you take control of your financial condition at that time? So, the best way to avoid this situation is building income pipeline instead of being entangled in ‘Time for money trap’ or becoming a bucket carrier. This income pipeline is the focal point and the ‘Golden Ticket’ to your economic freedom. It’s not that you should quit your job fully.Rather, you should build income pipeline and give continuity to your job simultaneously by investing the extra time as mentioned earlier. Extra income pipeline is our lifeline. Enter this game as soon as possible by investing both in long term and short term investment.

Sandeep Kattel

Blog Writer

Sandeep Kattel is a Lecturer of English at various collleges in Nepal .He has been writing stories for a long time, but he started publishing them only recently.He is also working on his two books - Family Cafe, which is a novel and another book Defying Odds Optimizing Caliber ,which is a motivational book.He is interested in writing short stories related to contemporary issues.

Become a Subscriber

Subscribe to our blog and get the latest updates straight to your inbox.

We do not share your information.

Provide your rating and reviews

You can write your reviews and give rating.

0.0 / 5

0 Review






Follow here to write your review