Think and Grow Rich

May 30, 2014 | Dian Chaaban


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90 Billion. That’s Bill Gates’ net worth. In second place is Mexican businessman, Carlos Slim Helu at 70.7 Billion. The list goes on, and on here.

So how did the richest people in the world become the richest people in the world? I came across an article in the Financial Post today that sheds some light on the topic...

Andrew Carnegie, born in Dunfermline, Scotland arrived in the US in 1848 with lint and coins in his pockets. An entrepreneur by nature, Andrew helped build the American Steel Industry from the ground up and by 1901, he was the richest man in the world.

At the height of his success, Andrew was approached by a young journalist named Napoleon Hill who was interested in telling the stories of successful people. A product of their relationship is the 1937 book, Think and Grow Rich, which has gone on to become one of the top-selling books of all time (I’m looking at it in my book collection right now).

When Hill began his career writing about the success of others (coincidentally leading to his own success), Carnegie gave him his '10 Rules of Success' which provided the foundation for much of Hill’s work. Here are five of them:

1. Carnegie Says: Define your purpose. Create a plan of action and start working toward it immediately.

Dian Says: Don’t just say you want to beat the benchmark when it comes to your portfolio. Define your specific life goal, determine how much money you need and put a plan in place to make sure you meet or beat your personal benchmark. As you have many life goals to plan for with various accounts and portfolios, a sound financial plan will be the foundation to your success.

Carnegie Says: Create a 'master-mind alliance'. Contact and work with people 'who have what you haven’t'.

Dian Says: Watching BNN doesn’t make you an expert at investing. If you don’t care for the market, don’t understand it or don’t have time to stay on top of it, hire a professional.

This is also why I’ve surrounded myself with a team of experts to ensure you have a true wealth management strategy that incorporates all specialists, partners and resources you need to guide you through life's many stages.

3. Carnegie Says: Go the extra mile. “Doing more than you have to do is the only thing that justifies raises or promotions, and puts people under an obligation to you,” writes Hill.

Dian Says: Getting the right investment advice is a key part of managing your wealth, but it's just one part of a bigger picture. Acknowledging this and investing in our platform has made us Canada’s largest full-service wealth management firm. My promise to you is that I will always go the extra mile.

4. Carnegie Says: Think accurately. In Hill’s words, accurate thinking is “the ability to separate facts from fiction and to use those pertinent to your own concerns or problems”

5. Carnegie Says: Profit from adversity. Remember that “there is an equivalent benefit for every setback”

Dian Says: Rules 4 & 5 are very parallel to the market and the media. The market is always going to react to the media and we cannot control that – but what we can control is our own reactions. Prudent investing requires that you separate your emotions from the media hype and reference back to your financial plan to address if this short-term dip affects your overall plan or not. If it isn’t relevant to your overall plan, the market set back offers a buying opportunity for the strategic optimist.

For the remaining 5 rules, click here.

In other news, Tuesday was the 7 year anniversary of breaking my neck and it was the first year that I actually forgot about it! Oops! I realized my oversight while chatting about the accident with a with a friend today over lunch and ironically, my surgeon had said it would take 7 years for my body to fully recover from the incident - body, mind and soul it seems.

Also, the firm is hosting a Wealth Management conference next week which I will be attending W-F, so there will be no WOTS next week as I'll be away enhancing my super Wealth Management skills to serve you better.

Enjoy the weekend!

D.

Dian Chaaban

Investment & Wealth Advisor

Chaaban Wealth Management Group

416.842.4234