There once was a large village that was a mile away from the nearest fresh water source. As was tradition, everyday the villagers would have one person from each household take a bucket and fetch water. This went on for generations. However, one day a young woman decided that she didn’t want to fetch water for the rest of her life. Rather, she decided to build a pipeline that would bring the water to her. Everyday she would gather supplies and continue building this pipeline, while her friends would mock her. They scorned her for breaking tradition and constantly told her that the pipeline would never work. Although this young lady was hurt by how cruel her family and friends had been toward her, she continued to build the pipeline everyday.
One day, all the villagers woke up early morning to fetch water and they saw that her pipeline was complete. They peeked in the window to find her washing her face with newly streamed water. They were in awe. The villagers pleaded with the young woman to show them how they too could build their own pipeline. The young woman smiled and said, “I built my pipeline with enough water pressure to service the whole village. That way you all don’t have to start from scratch like I did. All you have to do is create a pipeline branching off mine that leads to your home.” The villagers were grateful for the courage and thoughtfulness of this young lady. Eventually, the entire village was supplied water from this pipeline, and the town told this woman’s story for generations.
Your Financial Pipeline
In order to find financial freedom and independence, you must build a financial pipeline. Everyday, people wake up and go to work and exchange their time for money. Most people plan to live that way for the majority of their lives. However, there is a small percentage of people who decide they don’t want to spend their life that way. They instead build a financial pipeline that will eventually continue paying them, even when they are no longer working on it. Robert Kiyosaki talks about this concept in his book Cashflow Quadrant. The key is to create passive income (income you don’t continue to work for).
There are seven common avenues people use to build a financial pipeline, and three of them were also mentioned in Principles of Financial Freedom. These seven avenues include:
- Affiliate Marketing
- Online Courses
- Multi-Level Marketing
- Ownership Investments
- Lending Investments
- Cash Investments
Each of these avenues have proven over time to be great ways to get ahead financially and build passive income. However, depending on your financial goals and skill sets, some of these avenues can suit you better than others. The best part about most of these avenues, is that you don’t have to do anything radical, like quit your job, to get started! Even if you commit to working one hour a day on your financial pipeline, over the next five years you will have worked 1,825 hours on building your pipeline. Imagine what you can accomplish within that time. The key is setting financial goals and creating a plan for how you will achieve those goals.
Zig Ziglar talks about how important it is to set goals for yourself in his book, Goals. Without goals, you are simply wandering through life with no true direction or destination. This is how most people stay broke.
After creating a plan to accomplish your goals, executing that plan consistently is key to your success. I can’t express this enough! You must consistently execute the plan! What is a plan worth if you don’t consistently execute it?
The Building Process
Just like the story of the young woman, building a financial pipeline is often against social norms. Although people are beginning to talk about financial freedom and passive income more now than they used to, there are still a lot more people who have a traditional philosophy on how people should make money. Because of this, people who decide to build a financial pipeline often are ridiculed and face a lot of negativity along the way.
You must remember that most people will remain in the financially challenged their entire lives. This is important to remember because the advice these people will give you, along with the fear of change that they have, are the very things that keep them stuck in the rat race. Don’t allow them to prevent you from escaping the rat race.
What would have happened if the young girl from the story was convinced by the other villagers to quit? Nothing. The village would continue gathering water barrel by barrel, and so would she. The worst part is that they would never know what they missed out on. So expect resistance from the people around you, especially the ones who care about you most.
Whatever you do, don’t be discouraged from continuing to build your financial pipeline. The journey can be hard and hurtful, but is far shorter than exchanging time for money the rest of your life.
Hopefully this blog was helpful.
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