Carnegie's Rules of Success

Investment Advisor, Dian Chaaban adds her two cents to Napoleon Hill's best seller on Andrew Carnegie, with her professional take on what you should look for to ensure your own wealth management.

According to a recent piece in the Financial Post, Andrew Carnegie, who was 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. 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 and a product of their relationship is the 1937 book, Think and Grow Rich. This went on to become one of the top-selling books of all time.

Carnegie outlined to Hill his '10 Rules of Success,' which provided the foundation for much of Hill’s work. (Coincidentlally, writing about the success of others also contributed to Hills' success)

Here are five of Carnegie's Rules of Success:

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.

2. 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. I use, and I always advise others to surroung themselves with, a team of experts to ensure they have a true wealth management strategy that incorporates all the specialists, partners, and resources 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. Investing in a reputable and successful platform has made the company I work with Canada’s largest full-service wealth management firm. Make sure you go for the best—whereever you are, as the reason they are the best is that they will 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 are 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 a 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 other five Carnegie Rules of Success/the Financial Post article, click here.

Dian Chaaban is an Investment Advisor providing Professional Wealth Management for her clients with RBC Dominion Securities. She writes and publishes her own newsletter Word on the Street, and is a strong proponent of doing what she can to enhance financial literacy.  Free downloads available on Global Insight Daily, Weekly, Monthly for information on money markets, economic indicators, equities and more. To connect with Dian, please click.

Disclaimer: This information is not investment advice and should be used only in conjunction with a discussion with your RBC Dominion Securities Inc. Investment Advisor.