Let me share with you the story of two young men in village called the parable of the pipeline. It is a book written by an American author.
There were two young unemployed men in a village Bruno and Bablo. Both of them were not employed and so one day the village head invited them and offered them a job to fetch water from the nearby river to the village storage tanks for a certain wage. They both agreed to do the job with excitement.
And so they started fetching the water from the village river which is about three kilometer from the village.
After a while Pablo realized that it was a very difficult job to do and so he came with an idea. Pablo thought of building pipeline from the river to the village tanks. He now shared his idea with his friend Bruno but Bruno seems not to be interested in his idea
Baplo went ahead with the construction of the pipeline from the river to village tanks. After the project was completed, water can now be delivered from the river directly in the village tanks.
Pablo now makes money effortlessly. Pablo now makes money without much of his effort. This means that his money runs all the time
Whether his on vacation
Whether he is asleep
Whether he is on a journey
His money works for him
Bruno on the other hand was still carrying buckets on this head from the river to the village storage tanks
This means that when Bruno is sick his money will stop running
When he is on a journey his money will stops running.
Any day that Bruno did not fetch water from the river he will not earn and his income returns to zero
Pablo on the other hand started building water pipelines for other villags around and making money continuously;
What an idea!
Ladies and gentle men
95% of the people in this world are bucket carriers just like Bruno this means that only 5% of people in the world have created a passive means of income for themselves.
This will leads us to the different kind of incomes that we have
These are PASSIVE income and ACTIVE income
Active income comes to you only when you work. This means that when you retire or fall sick Active income stops flowing but on the other hand passive income continue to flow whether you work or not.
Examples of Active income: Remunerations and Rates
Examples of Passive income are:
Try to create a passive income stream for yourself