I used to think there was only one kind of cashflow; a paycheck. But, over the years, I’ve learned a paycheck is just one of many cashflow types.
And now, I feel it’s one of the lowest forms of cashflow; one of the least attractive. In my opinion, it’s not the cashflow of lifestyle. Any income that involves swapping dollars for hours is not high on my list of cashflow generating ideas.
What’s so bad about a paycheck?
Why am I so against a paycheck?
Because it’s probably the most inefficient way to create cashflow.
It’s also one of the easiest.
How do I know it’s easy? Because the masses are doing it or they’re in line to do it. That’s a sure fire indicator that something is easy. Why do you think lottery tickets are so popular?
And, what do I mean by inefficient?
Pumping Water Story
Well, let’s see … how about I use an illustration to explain? A story I heard a long time ago. One that has stayed with me over the years; kept me on-track with my goal of getting rid of my JOB. I don’t remember exactly how it was told to me but here’s the gist of it!
Let’s say there are two people – George and Henry. They live next door to each other. They both have a need for water. There’s a big waterhole about a 15 minute walk from their homes. When one of them wants water, he picks up two buckets attached by a long pole and carries it over his shoulders for the 15 minute walk to the water hole, fills up the buckets, then walks 15 minutes back to the house. This is called “fetching water” and it’s how everyone does it. No big deal in this village.
One day George has an idea. “I’m sick of fetching water every day. It’s hard work and I’m getting old and my back is giving out. I think I can solve this problem.” So, he spends the next 6 months putting in a pipeline to the waterhole. Then he attaches the pipleline to a pump and uses it to fill up a water tank inside his house. When the tank drains to a certain level, the pump turns on and fills it up again.
The whole time George was building his pipeline and pump assembly, the other villagers laughed at him. “It’ll never work. What’s so hard about fetching water. Are you lazy. C’mon, don’t waste your money on stupid ideas!” But, George kept working.
Now, when George wants water he just turns on the tap. Henry still makes the 30 minute round trip to the water hole.
Both these systems are ways of creating “water flow.” Which one do you think is more efficient? Which one appeals to you more? Which system would you rather have at your house?
Do you like fetching water? I don’t!
So, there you have it … to me a JOB is like fetching water every day.
I remember those days when I had a JOB. I used get up 5 or 6 days a week, pick up my buckets, head off to the JOB, and fetch my water … I mean paycheck!
But, now that I’ve built my water pumping – I mean cashflow pumping – system, I no longer have to go to the water hole – I mean JOB – everyday. I just turn on the tap. I created my cash flow system through residential property investing. I did this over a long period of time. But, now that the system is built, it doesn’t really matter how long it took me. But, I wish I’d done it sooner; a lot sooner!
Are you building a pump?
Are you building your cashflow pumping system?
If not, why not?
There are millions of ideas out there waiting to be brought to life. Ideas that require your talents, your skills, your creativity. Ideas waiting to be born. Ideas that will benefit society. Ideas that – when put into action – will create tremendous cashflow to support your lifestyle. Ideas that need someone like you to bring them to life. What are you waiting for? Go for it!