Passive Income Streams: Parable of Pipeline with Bruno Pablo Story
The particular understanding of passive income streams is essential for financial growth. A passive income stream is exactly what this sounds like, income that will stream or flow to you automatically after you have set up the pipeline and maintained a valve to open the flow. Most people think of investments in the form of Capital Gains only. Capital gains are similar to salary or bonus because they are a one-time thing. They don’t create a regular cash flow. In official words, Passive income is usually income as a result of cash flow received regularly, requiring minimal to no effort by the particular recipient to maintain that. It’s like making money even when you sleep or putting your cash flow on autopilot.
Today we will discuss a story to understand the difference between Passive Income Streams and other ways of making money.
Parable of Pipeline: Bruno Pablo Story
The story begins with two men Pablo and Bruno who are situated in a tiny village. In this small village, there exists a water spring at the top associated with the mountain and the particular town is located on the bottom. The villagers need water;, therefore, they asked Pablo and Bruno to carry buckets of water from sprint to the village.
So each day, Pablo and Bruno will carry buckets of waters from the top of the mountain to the village at the bottom. They would get some good money for carrying the buckets and life was excellent. Bruno felt good that he found a way to earn every day, he could save some money from it and buy some cattle and a house which he always wanted.
On the other hand, Pablo knew that his body was getting weak every day and he couldn’t carry buckers for the rest of his life. He wasn’t happy about the situation. One day Pablo get an idea of building a pipeline which will fetch the water from rive to the village directly. He thought more on the design and decided the plan of action. He knew its gonna take a lot of time and effort to build that pipeline. He discussed the same with Bruno, but Bruno was happy carrying buckets and wasn’t interested in Pablo’s idea of a pipeline (which was a passive income stream)
Pablo decided that he will build the pipeline himself. He carried buckets for sometime in the day to make a living and rest time he devoted in digging rocks and making the pipeline. Initially, he didn’t have many results to show people. Most people around him laughed at him and called him Pablo the Pipeline Man.
During this time, Bruno was earning his daily wages more than Pablo and enjoying his life by going to clubs and spending his regular income. He regularly made fun of Bruno.
After a few months of consistent efforts, Pablo completed his pipeline, and it started paying off immediately. Now he didn’t need to carry buckets as he could get water just by opening the tap. He could go to pubs and still make money because of the pipeline. On the other hand, Bruno was getting sick and tired because of daily labor and any day when his health was not supportive, he didn’t make money that day.
The particular story of Bruno and Pablo is the reflection of our lives. Most people work in jobs to earn wages which are like carrying buckets. They exchange their hours for dollars. To make more money, one either needs to carry larger buckets or make more trips to the river. In simpler terms either people work in the office for more extended hours/overtime or they take a secondary job. Eventually taking out time from their loved ones.
Most of us work like Bruno. The problem is we have 24 hours only, and we can’t work beyond that. With growing age and health situation, our productivity in those working hours also gets reduced. The problem happens when we are no longer able to exchange our time for money.
If we talk about what Pablo did, he understood that he couldn’t carry buckets for his lifelong. So he took some time out to build a passive income stream in the form of a pipeline. He knew that once the pipeline is ready, he doesn’t need to trade his hours for money. The pipeline will keep working even when Pablo stops working. His hard work was required only until he completed the pipeline.
Pablo has shown that we don’t always have to exchange times for money directly to make money. There really are better ways to build passive income streams. How about you? Are you still like Bruno who directly trades his times for cash? Or you will become like Pablo, building and maintaining the pipeline, The Passive Income Stream for regular income?