Ignore the Hype

Chapter 1The Times They Are a-Changin'

In order to be financially successful, you must learn to ignore the hype and drown out the noise. That is not negotiable. If you cannot ignore the mayhem that surrounds you, you have virtually no chance of achieving financial success.

Yes, this can be difficult. In fact, entire industries exist for no other reason than to bombard you with a constant barrage of hype and noise. Sometimes it's the media, and flashing headlines warning that you risk financial destruction if you don't do something right now. Sometimes, it's brokerage research reports touting the latest hot stock tip.

Almost as dangerous are the legions of nonprofessionals eagerly lining up to give you advice on a subject they themselves know little about. Here I'm referring to well-meaning, but misguided efforts by friends and family to tell you how to make financial decisions.

Obviously, the people in your life aren't intentionally leading you astray. And sometimes their advice may be sound. But there are two problems with following their advice.

The first problem is that the advice itself may be not be very good. Think about it this way. If you go to the gym and get a personal trainer to help you get in shape, you're probably going to look for somebody fitter than you, somebody who obviously knows their way around the gym. The same should hold true for your finances. Before taking financial advice from somebody, you should have a pretty good idea of what their personal financial ...