Читать книгу Ignore the Hype - Brian Perry - Страница 13

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 situation is.

Does that person have similar goals, constraints, and resources as you? And have they done a good job within those confines of navigating the path to the financial future that you desire? If so, maybe it does make sense to listen to what they have to say. But if not, it's best to politely thank them and then move on.

The second challenge is that, even if the information itself is valid, it may not fit within the context of your overall plan. Remember, you're not trying to build a collection of investment ideas or financial concepts, but, rather, a coherent and holistic collection of strategies designed to help you meet your unique financial goals. That is why the first step on the road to financial freedom is always a financial plan.

The constant barrage of hype and noise will be a recurring theme throughout this book. The best, and perhaps only way to ignore all this is to find your True North, otherwise known as the financial plan and strategies most likely to help you achieve your financial goals. In identifying this plan, you must come to a level of conviction that allows you to avoid the temptation to stray from the path you've identified. If you can do this, your odds of financial success are high. Failure to achieve this conviction level often comes at great cost.

When it comes to your finances there are two main approaches. They are speculation and investing and they are as different as night and day.