Myself, "Am I building a pipeline or hauling buckets?" "Am I working hard or am I working smart?" And the answers to those It has assisted me in my life's decision making process. That story about Bill and Ed has guided me for years. Bill had developed a pipeline to deliver money to himself as well as water to the villages.īill lived happily ever after and Ed worked hard for the rest of his life and had financial problems forever after. He only makes a penny per bucket of water delivered, but he delivers billions of buckets of water, and all that money pours into his bank account. He rewrote hisīusiness plan and went off to sell his high speed, high volume, and low cost and clean water delivery system to villages throughout "Bill, on the other hand, realised that if this village needed water then other villages must need water too. Higher wages, better benefits and wanted its members to only haul one bucket at a time. Eventually Ed had employees and union problems. Reason, after college, his two sons never returned. When his boys went off to college, he said to them, "Hurry back because someday this business will belong to you." For some In order to provide better service, he hired his two sons to give him a hand for the night shift In order to compete, Ed immediately lowered his rates by 75%, bought two more buckets, added covers to his buckets and began Village cheered and ran immediately for the faucet at the end of Bill's pipeline. Then Bill announced that he would charge 75% less than Ed did for this higher quality and more reliable source of water. Ed could only deliver water on the weekdays-he did not work on weekends. Bill also announced that he could supply the village with water 24 hours a day, 7 days a week. Opening celebration, Bill announced that his water was cleaner than Ed's water.īill knew that there had been complaints about dirt in Ed's water. Within a year his team had built a large volume stainless steel pipeline which connected the village to the lake. Six months later with a construction crew. "Instead of buying two buckets to compete with Ed,īill had written a business plan, created a corporation, found four investors, employed a president to do the work and returned He was not seen for months, which madeĮd very happy since he had no competition. It was hard work, but he was very happy to be making money and for having one of the two exclusive contractsīusiness Owner Thinking "The second winning contractor, Bill, disappeared for a while. He would empty them into the large concreteĮach morning he had to get up before the rest of the village awoke to make sure there was enough water for the village when Money as he labored morning to dusk hauling water from the lake with his two buckets. Steel buckets and began running back and forth along the trail to the lake which was a mile away. Self Employed Thinking "The first of the two people who won the contract, Ed, immediately ran out, bought two galvanised Would keep prices low and ensure a back-up supply of water. Two people volunteered to take on the task and the elders awarded the contract to both of them. To solve this problem once and for all, the village elders decided to put out to bid the contract to have water delivered to the village on a daily basis. The village had no water unless it rained. It was a great place to live except for one problem. It goes: "Once upon a time there was this quaint little village. The right side of the 'B' and 'I' quadrants. Rich Dad's way of explaining the difference between the left side of the CASHFLOW Quadrant, the 'E' and 'S' quadrants, from My Rich Dad told me a simple story when I was 12 years old that has guided me to great wealth and financial freedom. Their cash from businesses or investments they own. The right side of the CASHFLOW Quadrant is for individuals who receive Reside on the left side of the CASHFLOW Quadrant. Many of us rely on pay checks and are therefore employees, while others are self-employed. Building a Pipeline to Wealth (The Four CASHFLOW Quadrants)Įach of us resides in at least one of the four quadrants of the CASHFLOW Quadrant.
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