When It Comes To Money, Don't Follow The Crowd

Are you glued to CNBC or MSNBC during the day, following the latest stock market activity? Do you read all the money magazines every month? Do check your 401k balance every day? If you said yes to the above questions...I have one thing to say:

Relax.

You don't have to follow every move the stock market makes. It could be hazardous to your health. Maybe not, but let me explain.

If you pay to much attention to the news or your account balances you are more likely to make some emotional decisions instead of sound financial ones. When others start selling stocks so do you. When people are buying, you are more likely to buy. So what can you do?

Stick to your guns, and your financial plan. Even Warren Buffett says you should not follow the crowd. Create a plan, buy your mutual funds. Keep buying them when you can, and hold them for a long time before selling. At least five years.

The stock market can turn on a dime. Don't waste too much time changing your mind. Make a decision and stick with it. You'll be glad you did.