The Road to Wealth
Rich dad told me a simple story when I was twelve that guided me on the road to great wealth and financial freedom. He said:
“Once upon a time there was a small old village. It was a livable place, but it had a problem. There was a shortage of water in the village. In order to solve this problem radically, the village elders decided to tender the daily supply of water to the village. Two people put forward their candidacy, the village elders signed an agreement with both of them. They thought that a little competition would keep prices low and save us from dehydration.
Ed, the first of the bidders, rushes to get two stainless steel buckets, goes to the lake a mile and a half away, and starts to carry water to the village from morning till night. He immediately starts earning money as he carries two buckets of water nonstop from dawn until sunset. He fills the water he brings into the cistern built by the villagers. Every morning, the villagers have to ensure that they find enough water when they wake up on the road while they are in bed. It's a tiring job, but he's happy that he's making money, glad to be one of the two bidders to get the job.
The second person, Bill, hasn't been seen for a while. When this situation drags on for months, Ed, who works unrivaled, rejoices. He earns all the money.
Instead of buying two buckets to compete with Ed, Bill chose to come up with a business plan: he starts a company, finds four investors, and appoints a manager; six months later he shows up with the construction crew. It lays a large diameter stainless steel water pipeline from the lake to the village within a year.
In the opening ceremony, Bill mentions that the water he carries is cleaner than the water Ed brings. Complaints about that water have come to his ears. It also indicates that it can supply water to the village 24 hours a day, seven days a week. Ed only carries water on workdays… He doesn't work on weekends. Bill also announces that he will receive 75 percent of Ed's wages for this healthier and safer water. The people of the village, who greeted this with applause, immediately hit the road, running to the fountain at the end of Bill's pipeline.
To compete with him, Ed immediately lowers his prices by , buys two more buckets, puts lids on his buckets, and starts carrying four buckets at a time. He employs both of his sons on night shifts and on weekends so that he can serve him better. When children reach university age, he confronts them and says, 'Hurry up, one day this job will be yours.'
For some reason, Ed's sons don't come back after college ends. Ed has employees, he has problems with the union. The union pushes for wage hikes, better working conditions, insisting that workers only have to carry one husband at a time.
Bill, on the other hand, thought that if there is a need for water in the village, it may be possible in other villages as well. It develops a new business plan and markets a low cost, fast, clean and pressurized water distribution system worldwide. It takes a penny for every bucket of water carried, but generates billions of dollars in cash flow every day. Thus, Bill developed the pipeline project to bring money to his own pocket and water to the villages.
In the end, while Bill lived a happy and comfortable life, Ed worked all his life, yet he could not get rid of his financial problems. End."
This story of the rich dad has guided me over the years. She shed light on making decisions that will change my life. I would always ask myself:
“Is this the pipeline job I set up, or the bucket job?”
“Am I working hard, or am I working smart?”
The answers I gave to these questions would set me free financially.
Robert T. Kiyosaki
Source: Robert T. Kiyosaki and Sharon L. Lechter (2006) “Cash Flow Measurement Quarter” (Trans. Dilek Şendil), Alfa Publications, Istanbul. p.4-6
