I've written several "best advice" pieces (see my best advice category for details) and love to hear short takes on what financial "experts" view to be their best piece of financial advice. Over the next several days, I'll share some of these from a Bankrate article on best personal finance advice and give you my comments on them. Today, we'll hear from Neale Godfrey, author of "Money Doesn't Grow on Trees: A Parent's Guide to Raising Financially Responsible Children":
"Step away from the television and the magazines. All they serve to do is show you how stupid you are because you've missed whatever they're talking about. It's old news. It's already happened."
The advice came from her financial adviser, she recalls. "I used to call him and say, 'Why didn't we ...?' He'd say, 'Stop it. Step away from the television. It's done.'"
She realized that he was right. "By the time you see it or read it, it's done; it's happened," Godfrey says. And if you listen and follow the hot news, she says, "You will buy at the top and sell at the bottom -- exactly what you're not supposed to do."
A couple thoughts from me:
1. I'm certainly with her when it comes to ignoring what the mainstream media tries to push on us -- especially when it comes to investing.
2. That said, I do watch TV and partake of much in the media. I could likely save a ton of money if I did ignore them altogether.
What about you? What do you think of Godfrey's advice?
This advice is dead on. If you spend all your time listening to the talking heads you will only be looking backwards instead of forwards. Start focusing ahead and you maybe making the moves before the talking heads start spewing about them.
Posted by: Saving Freak | November 01, 2007 at 07:02 AM
Excellent advice. Yet another reason we don't have cable or satellite tv. What they most often call NEWS is anything but new.
Posted by: Curtis | November 01, 2007 at 09:09 AM
Mass media advice is generally bad.
My blog actually has analysis in a digestible, non-time wasting format. Oh, and it's so pretty
Posted by: Dave | November 01, 2007 at 01:27 PM
I think it's the best possible advice you can give someone. TV manufactures artificial wants in people. It tells us that it's "normal" to live in a million square foot McMansion and drive a Land Rover.
Posted by: escapee | November 01, 2007 at 02:00 PM
News really caters to speculation rather than investment. Focus on educating yourself to investment principles rather than hot tips.
Posted by: Lord | November 02, 2007 at 06:30 PM