How Anyone Can Build a pipeline Of

Lots of People Are Drowning 
The first lesson we learn from this joke is that 
things aren’t always what they seem! Joe thought 
the guy was enjoying a leisurely dive. But the truth 
was much different – the guy was drowning! 
Appearances can be deceiving when it comes to 
finances, too. People who wear Rolex watches and 
designer 
clothes 
appear 
to 
be 
financially 
independent – but many of them are drowning in 
debt! 
When Thomas J. Stanley and William D. Danko, 
the authors of 
The Millionaire Next Door,
started 
researching their book, they sought interviews with 
people who had a net worth of a million dollars or 
more. Assuming that the richest people lived in the 
most expensive houses, the authors surveyed people 
in upscale neighborhoods across the country. 
But the authors soon discovered that many people 
living in big homes and driving expensive cars 
hadn’t accumulated much wealth. Why? Because 
they were spending their money to support lavish 
lifestyles instead of putting a portion of it aside to 
build pipelines. 
Stanley and Danko adopted a folksy Texas saying to 
describe these mega-consumers: “Big Hat, No 
Cattle.” The cowboy metaphor paints a pretty vivid 
picture, doesn’t it? 
Big Hat, No Cattle 
Picture missing 

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84 
The Power of the 50-Year Pipeline Plan 
The second lesson that we learn from the diving 
story involves Joe’s plan to become financially 
independent. Joe’s 50-year pipeline plan is a classic 
example of the good news/bad news scenario. Let’s 
look at the good news first. 
The good news about the 50-year pipeline plan is 
that it works! Saving and investing small amounts 
of money in the stock market on a monthly basis 
over time is a sure-fire way for people of modest 
means to become financially independent. 
The key to long-term investing is to make regular 
deposits over a long period of time and then let it 
compound year after year. If people start early 
enough and stick to their pipeline plan, they can 
become millionaires by saving just $100 a month!
Impossible, you say? The following chart tells the 
tale: