May 20, 2016

An Interesting Parable on How to Go About Creating Wealth

Just after college I had tried my hand at many different job profiles which included a brief interlude with 'Network Marketing'. Through it I was introduced to this wonderful story that has since formed a philosophy basis on which I advise my clients and also look at creating my own wealth. I thought I'd share the same with you.

A long time ago there were two boys who had just finished schooling and were ready to start work. They lived in a village and the head-man made them an offer of bringing buckets of water from the river located at some distance from the village. They had to fill all the tanks in the village and they'd be paid basis each bucket of water that they brought in.

The boys jumped at the opportunity and within a few days they were making good money. They spent it on clothes, accessories and parties and they were having a good time. Young, healthy and rich they made the most of this present moment success.

One day one of the boys ended up with a severe back spasm because of all the lifting. He was advised bed-rest for a month. Being good friends the other offered to take care of him and share his earnings with him. The sick boy was grateful for his friend's generosity but the long period of idleness got him thinking of what would happen if there were no friends. How long would or could he continue lifting buckets? And suddenly an idea sprouted in his head.

That same evening, when his friend returned, the boy put a proposal forward. "What if we build a pipeline from the river to the village?", he enquired with his friend. The friend scoffed at the idea. "That would take way too long and we'd be losing out on earning money today and spending it on good times now"- he said. This was true but the boy saw the potential in his idea and wanted to follow through with it. His friend didn't want to participate in the project and so once they boy got fit again he began spending only half his time in lifting buckets and the remaining he would use to work on the canal to lay the pipeline from the river.  

His friend in the meanwhile continued to lift the old quantity of buckets and so his earnings and consequently lifestyle were twice as good as the other boy's. He began to mock his friend publicly for chasing his elusive pipeline dream. It was a very long-term project and made much tougher because he had to work on it on his own. And initially it didn't look like anything great was going to come from these efforts. But, slowly and surely, the boy kept up his efforts in building his pipeline.

The friend continued to lift buckets and fill tanks. Though the pay was good, with the passing of time he could feel his hands and back getting sore with all the lifting. He didn't really look forward to each day's work. But he had no choice because if he didn't lift he wouldn't get paid. 

After a long time they day finally came when the boy's pipeline was ready. Water came gushing through the pipeline and filled all the tanks in the village. Not only was the boy a hero but he was also getting rich as he was getting paid for each bucket of water that was being filled. And this was only going to continue from now on forever without any efforts going forth. His friend was left flabbergasted. 

Building wealth is the process of building pipelines for yourself. This could be through Business, Real Estate, Gold, Equities or Debt. The means maybe different but the fundamental idea is to build pipelines. 

The deeper question for you dear reader is are you only lifting buckets or are you also building pipelines?

*Material from Burke Hedges- The Parable of the Pipeline

You can buy the book here-

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