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Real Estate Investing - The Pipeline To Your Financial Freedom - Articles SurfingIf you need to get water from one place to another, it seems to be common sense that you would build a pipeline to get the most water for the least amount of work, using technology. But the reality is, most people are taught to overlook the obvious in favor of the most familiar approach. Consider this story, told by Robert Kiyosaki in his book, 'Cash Flow Quadrant.' There once was a village that had to wait for the rain in order to have water. This was a major problem for the village, and so the chief asked for bids from anyone who thought they could solve the water problem. Two men stepped forward. Thinking that competition would be good for the village's economy, the chief put both of them to work solving the problem. The First Man immediately disappeared. This made the Second Man very happy. He set to work immediately, hauling buckets of water from the river to dump into the village reservoir. The villagers were very happy with the new situation, as they no longer had to wait for the rain. The Second Man didn't mind working day and night hauling water, because he was making money on the deal. After six months, however, the First Man returned. He had with him a construction crew and an engineer. In no time at all, there was a pipeline to run water from the river to the even bigger reservoir he had his crew build for the villagers. What's more, he offered his greater quantity of water to them for much less than Second Man could offer his for. But Second Man was not to be daunted. He redoubled his efforts and even put his sons to work hauling water, but he could never match the First Man's output. The First Man eventually offered his services to nearby villages and became a rich man, while the Second Man worked hard all his life for a modest income. Now, consider Kiyosaki's words: 'I've always asked myself if I am building a pipeline or hauling buckets of water.' Most people are taught to haul buckets of water, because they are taught that they should get a good job, which they will depend on for their income. It is common sense to get a job if you are in need of money, right? Yes, it is. But the common sense approach isn't always the best approach, simply because what may seem to be the answer at the outset often involves overlooking alternative methods of making money. Those alternative methods may seem to be indirect methods. Not that there is anything wrong with a more direct approach. Indeed, if all you need is a modest amount of 'water,' then hauling buckets, or working a job, may be fine for you. But it won't make you rich. You will not become rich until you figure out how to get the most 'water' for the least amount of work. This is because there are only so many hours in the day you can work. Most jobs won't make you rich even if you could work at top efficiency for 24 hours a day, seven days a week. The system just isn't set up to work that way. What you need to do, is build a pipeline. Real estate investing is your financial pipeline. It is a way to get the most money to flow your way with the least amount of work. How long do you really want to haul buckets?
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