The Parable of the Pipeline Summary In English

The Parable of the Pipeline

About Book

What will you learn from this summary?

Is working a typical 9-5 job stable? Does a monthly salary make you financially secure? In this book, you will learn the story of two best friends who dreamed of being rich. One of them succeeded while the other failed. You will learn how to earn money 24/7. You will know how to make money flow continuously into your life.

Who will learn from this summary?

●    All kinds of employees

●    College students

●    Breadwinners of the family

About the Author

Burke Hedges is a successful entrepreneur, marketing trainer, and best-selling author. He used to be a minimum wage earner, but Burke read a book that changed his life. From there, he became a top salesman and then started his own company. Burke now offers marketing training to help people succeed just like he did. 

The Parable of the Pipeline: How Anyone Can Build a Pipeline of Ongoing Residual Income in the New Economy 

Burke Hedges

The Parable of the Pipeline
The Parable of the Pipeline summary
The Parable of the Pipeline summary in English

Introduction

Did you grow up believing that the way to success is a stable job? That you should study hard for years just to become an employee? Is that all that you can be? Have you ever wondered how to gain financial security or dreamed of becoming a millionaire? You will learn about all this and more from Burke Hedges’ book “Parable of the Pipeline”..“The Parable of the Pipeline” is the story of two young men who dreamed of becoming wealthy. This story teaches valuable lessons for life. You will learn two effective ways to become rich in the long term. You will learn amazing concepts to multiply your money. You will learn a simple technique to start a business. This book is gold. If you apply the lessons here, you will finally become rich, happy, and successful. Have you ever dreamed of becoming a smart investor and entrepreneur? Then this is the book for you.

Parable of the Pipeline

Once upon a time, two best friends lived in a small town. Their names were Pablo and Bruno. The two friends shared the same big dream: they wanted to be the richest men in town. Finally, Pablo and Bruno had a great opportunity. There was no source of water for the town. There was only a huge tank at the town square, which needed to be filled with water from the nearby river. Two men were needed to carry buckets from the river to the tank. The two men who did this work were Pablo and Bruno. The town leader would give them one penny for every bucket they carried. Bruno was very happy because he believed that this was their dream come true and that soon they would be the richest men in town. But Pablo was not sure.

Every day, each of them carried two buckets filled with water back and forth between the town and the river. Pablo’s whole body ached. Blisters formed in his hands. At night, he was exhausted. Pablo thought that had to be a better way to fill the tank. One day, Pablo shared his amazing plan with Bruno. “Hey, man. I have a great idea. Instead of carrying these buckets every day for one penny each, let us build a pipeline from the river to the tank.”Bruno was stunned. “Build a pipeline? That’s the craziest idea I have ever heard!” Bruno explained that they had a fantastic job. They could carry 100 buckets every day, which earned them 100 pennies.

Bruno said that he could now afford to buy new shoes. Soon, he could buy a new hut to live in. They even had days offs on the weekends. He said, “Pablo, we are set for life. Forget about the pipeline.”But Pablo could not stop thinking about the pipeline. Somehow, he knew that this idea would work, and so, he reserved a few hours every day for building the pipeline. He would still carry buckets the rest of the time. Pablo knew that it would be difficult. He was alone, and he only used simple tools like a pickaxe and a shovel to complete the work, against the hard and rocky soil. Pablo also knew that he would have less income since he would carry fewer buckets.

It might take him years to finish his project, but Pablo believed in his vision, and he persevered. The townspeople started to call him “Pablo the Pipeline Man”. They saw him dig and dig every day under the hot sun. Some of them even laughed at him, but Pablo continued working. Bruno, meanwhile, was living the good life. The people called him “Mr. Bruno”. He now earned more money than Pablo. Bruno bought a donkey and he wore fancy clothes. He bought a new hut and ate delicious meals every day. Bruno started going to the tavern every night. He would buy beer for everyone. He laughed out loud and shared many jokes. While Bruno was partying, Pablo was out in the dark, digging underground. Pablo even spent his weekends building the pipeline.

Pablo whispered to himself as he worked. “One step at a time…One step at a time… Eyes on the prize… Eyes on the prize…”Many months passed. Pablo completed half of the pipeline. He no longer needed to go all the way to the river; he could fetch water from the unfinished pipeline and carry the buckets to the tank. Pablo became even more determined to achieve his goal. Meanwhile, Bruno felt burned out. His back stooped from the daily bucket-carrying. He realized that he would do this task for the rest of his life and Bruno became miserable. People began to call him “Bruno the Bucket Man”. He stopped buying drinks for everyone at the tavern and no longer laughed loud or told jokes.

Bruno just stayed in a dark corner of the tavern where he finished one beer after another. At long last, the day that Pablo had been waiting for arrived. The pipeline was done. It was fully operational. The people gathered around the tank. Pablo’s pipeline filled the tank with gushing water. The people all had fun, splashing around the tank. Pablo didn’t need to carry buckets anymore- the pipeline did the work for him. But, Pablo was still paid for every bucket filled, this way he earned money as he slept, as he ate, and he played. The water just kept on running through the pipeline. Imagine how much money Pablo made!

The people now called him Pablo the Miracle Maker. They asked him to run as Mayor. But Pablo had other plans. For him, this is just the beginning. Pablo wanted to build many pipelines around the world! He didn’t forget about his best friend. Pablo asked for Bruno’s help. He explained that it took him two years to finish the pipeline alone. Together, they could work faster and even teach many people how to build a pipeline. Pablo and Bruno prospered with their multi-million dollar business. 

  

We Live in a Bucket-carrying World

Who do you want to be like? Do you want to be like Bruno the Bucket Carrier or Pablo the Pipeline Builder? Most of us work in the “Time-for-Money Trap”. It means one day’s work is equal to one day’s pay. One month’s work is equal to one month’s pay. The problem is that if you are sick or if there’s an emergency at home, then you cannot go to work and you will not be paid. You may believe that your job is a stable source of income, but it’s not. Take, for example, Lauren, a dentist. People like to go to Lauren because her procedures are pain-free and she is friendly. She earns $100,000 every year in a profession she loves.

However, when Lauren turned 40, she had arthritis. She could not move her fingers anymore. She could not do the procedures or even grasp the equipment for her profession. Lauren had to close her clinic. She became a lecturer at the local university and her income was cut by 70%.  Lauren lost her dream job. Do you see the problem with bucket-carrying? It doesn’t matter if you are a janitor or an office clerk or a lawyer. No work means no pay. You have no financial security. If you lose your job, how will you pay for your mortgage?

How will you finance your child’s education? Remember this: sickness, emergencies, pandemics, and economic crises are part of life. Bad things happen. That’s why you need to be prepared. Building a pipeline takes time, effort, and patience, but once it’s done, the pipeline will work for you 24 hours a day, 7 days a week, 365 days a year. It will earn you money while you sleep or have fun at the beach. Bucket-carrying refers to a job or profession. Pipeline-building refers to being a smart investor and entrepreneur. Financial security means not having to worry about bills or your child’s future or your retirement. You have it all covered, and you still have money for leisure.

Your Pipeline is Your Lifeline

You’ve got to build a pipeline. It will let money flow from your investments straight to your pockets. It is your source of financial security. No matter how huge your salary is, you will spend it. When you earn more, you spend more because you tend to upgrade your lifestyle. You will learn from this story of two different individuals. One is a bucket carrier, and one is a pipeline builder. One lost all his wealth, while the other enjoyed financial security. Daryl Strawberry was a superstar baseball player. He started playing when he was a teenager and had an amazing career for 20 years. Daryl earned $5 million every year just from playing baseball He had an additional income of $2 million from endorsements and special appearances.

Now, you might think that Daryl was set for life, that this guy must have financial security. But this is not true. Daryl bought expensive mansions and luxury cars. He became an alcoholic and drug addict. His wife filed for divorce. Daryl had to pay for his law offenses, his divorce settlement, and his rehabilitation treatment. What’s worse is that the sports authorities decided to suspend him because of his bad behavior. Daryl could not play anymore. He lost all his money and could not provide for his second wife and their children. Daryl died a poor man. Do you see how important saving and investing are? You do not need a big salary to build your pipeline.

You can save a portion of your salary right now and invest it in steady-growing assets. Margaret O’Donnell was a public school teacher from a small town. Her annual salary was $10,000. She worked at the school for 50 years. Margaret retired at age 70. She passed away at age 100. In her last will, she stated that her $2 million should be donated to 10 different charities. You heard it right. Margaret had two million dollars. How did she do that? How did she earn that much money? Her secret was investing. Margaret saved 10% of her annual salary. She invested it in index funds and medium and long-term bonds. She applied the power of compounding. It means that she let her money grow over time.

This is how compounding works: Margaret added $1,000 to her pipeline every year. Her interest rate was at 10%. In the first year, she had $1,000 x 10% interest. In the second year, she had $2,000 x 10%. In the third year, she had $3,000 x 10% and so on. Margaret had the self-discipline to save a constant amount every year and let her money grow without touching it. She let her investments compound for 50 years. You might think that Margaret was a sad old woman who lived alone with her cats. But actually no, Margaret drove her own BMW. She traveled around the world with her friends. Margaret enjoyed her wealth, but she had self-discipline. Because of that, she had financial security. 

The 50-Year Pipeline Plan

Palm Beach, Florida is home to the richest families in America. That is where the Kennedys, Fords, and Rockefellers live. Believe it or not, the secret to their bottomless wealth is compounding. Listen carefully to these next words and you will learn another incredible concept. It is the Rule of 72. Imagine a rich and beautiful heiress. She received an inheritance of $100,000. She invested it in a diverse portfolio of bonds, stocks, real estate, and pension funds. Her annual interest rate is 10%. The rule of 72 says to divide 72 by the annual interest. The result of that is the number of years with which the initial investment will be doubled. In the case of the heiress, 72 divided by 10 is equal to 7.2 years. That means after 7.2 years, her $100,000 investment would become $200,000.

If the heiress is smart and disciplined, she will not take out any of her money. Her $200,000 would become $400,000 in 14.4 years. It would double to $800,000 in 21.6 years. The heiress would have $1.6 million in 28.8 years. Do you see now why the heirs of Ford and Rockefeller have remained rich from generation to generation? Consider the Rothschild family, they have been one of the richest and most powerful families in Europe for over two hundred years. How can you apply this concept? Starting today, you can teach your child to save and invest. There is a simple money system you can use. You and your child can build this good habit together.

The Money System goes like this: prepare three jars for your child. Label the first one, “Spend & Give”. Tell your child that he can use the money in this jar for buying chocolates and candies. It is also for helping other people. Label the second jar “Save”. Let’s say your child wants to buy an expensive toy for his birthday or he wants new shoes for a special occasion. He can save money in the second jar and buy it for himself. Imagine how proud your child will be! Lastly, label the third jar “Invest”. Tell your child that he should never spend the money inside. This money is for emergencies. He should just let the money accumulate there so that if there is an unexpected event, he doesn’t have to borrow money.

Do you see how brilliant the money system is? This will teach your child the value of money. He would learn the importance of financial security. If he grows up in this habit, you will have peace of mind. Your child would never be bankrupt even when you’re gone. Of course, you should have your money system, too. In the first jar is the money you spend on monthly expenses such as food and electric bills. In the second jar is the money you save for your child’s college education, home renovations, or holiday vacation. Finally, in the third jar is your pipeline money. Save 10% of your salary every payday and put it inside this jar. After a year, you would have enough money to invest. Let’s say you have $10,000. Invest it in a diverse portfolio of bonds, stocks, index funds, etc. If you have 10% interest, your money will be doubled every 7 years. Do not touch any of it.

Follow this advice, and you would become a millionaire. By rule of 72, your $10,000 will become $20,000 in 7 years. It will be $40,000 in 14 years, $80,000 in 21 years, $160,000 in 28 years, $320,000 in 35 years, $640,000 in 42 years, and finally $1,380,000 in 49 years.Even if you do not have $10,000 in your first year, you still have hope. Let’s say you only have $1,000. The trick is to add $1,000 every year to your existing investment. On top of that is your annual interest. Let your money compound for 50 years. Your pipeline will grow bigger every decade. That is the 50-Year Pipeline Plan.

The 5-Year Pipeline Plan

Wise men say, “There are two ways to be on top of a big oak tree. You can sit on an acorn and wait for it to grow, or you can climb your way up a grown one.”The 50-Year Pipeline Plan is like sitting on an acorn and waiting. You need to wait for 50 years to become a millionaire. Meanwhile, the 5-Year Pipeline is quicker. You can get rich with 90% less time. The 50-Year Pipeline Plan is all about investing. The 5-Year Pipeline Plan refers to starting your own business and becoming a successful entrepreneur. With a booming business, you can become a millionaire in 5 years or less. In the 5-Year Pipeline Plan, you do not invest money. Instead, you invest your time.

Imagine that you have a daily supply of $1,440 in your bank account. That money is yours alone, and you can decide what to do with it. You could save it, spend it, burn it or give it away. It’s up to you because the next morning, you will have a new supply of $1,440. How cool is that? But we all know that it is just a fantasy. Some of us are poor, while others are rich. Life is just like that. We do not wake up every day with $1,440 in our bank accounts. But, listen closely: the truth is we wake up every day with 1,440 minutes in our time account. That translates to 24 hours daily. Amazing, right? You have the sole authority over what you do with your time. You can work 9-5 and spend the rest of your time watching Netflix. Or you can work 9-5 and start building your pipeline. You might say that you cannot start your own business because you are stressed, you are busy, or you are scared. Well, guess what? Everyone else is just like you.

Remember what Pablo did? You can reserve two hours every weekday to build your pipeline. On weekends, you can allot three hours. If you sum it up, you will have 16 hours per week. That’s good already. In your two hours, you can perfect any skill like baking cupcakes, designing software, or writing stories. You then find a way to turn that hobby into a business. You can also get sales training or you could think of a product that will give value to many people. Do you think Bill Gates comes home from work and then lies on the couch every day? No. He makes good use of his time. He spends every hour he has on productive things. That is why he remains successful.

Experts say that the top 10% of earners in America work an average of 52 hours per week while the bottom 10% of earners work only an average of 45 hours. See the difference? Successful people work longer and smarter. They make the best of the time they have. You might say that your life is going quite well. You have a nice job, and a savings account and you cover all your family’s expenses. You don’t need to take risks in a new business. This is the right time to start. Do you know the story of the ant and the grasshopper? The ant collected food every day in the summer while the grasshopper played around. When winter came, the ant had enough supply while the grasshopper had no food. The best time to build a pipeline is now.

Conclusion

In this book, you learned about Bruno the Bucket Carrier and Pablo the Pipeline Builder. You learned that we live in a bucket-carrying world. We are encouraged to study hard and then work for a steady paycheck. However, no work means no pay. Choose to be like Pablo and build a pipeline. If you do, you will have financial security through all the challenges of life. Your pipeline will earn you money no matter where you go or what you do. You learned about the 50-Year Pipeline Plan. You learned about the power of compounding and the Rule of 72. You can become a millionaire.

You also learned about the 5-Year Pipeline Plan. Make good use of your time. Instead of doing mediocre activities, you should start your own business – as little as two hours every day is enough. The author Burke Hedges said that you can build both the 50-Year Pipeline and the 5-Year Pipeline. You can become a smart investor and entrepreneur at the same time. Then, you can truly have financial security. Imagine the many things you could do. Start right now. You do not need to be rich. You do not need a big salary. Like Pablo, all you need is patience and determination to succeed.

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