Steady As You Go – Dollar-Cost Averaging

52 Simple Ways to Manage Your Money – 30. Steady As You Go – Dollar-Cost Averaging

What it is…

A method of investing where you invest a specific dollar amount at a specific time, regardless of the stock or bond markets’ performance.

How it helps …

Encourages you to save regularly and consistently.

Averages out the market fluctuations.

Reduces your average cost per share.

You can authorize your bank to have money sent directly from your checking account.

Time …

Several hours to investigate investments (less if you hire an advisor).

Keys to action…

Review your goals and objectives.

Determine an amount to save regularly.

Select an investment. (See chapters on stock and bond mutual funds and annuities.)

Complete paperwork as for regular investments.

SET IT UP

Determine if you would benefit from a regular savings program.

STEP ON IT

Consider the amount you would use in such a plan.

STEP ON IT +

Which of your goals would this fulfill?

Notice…

Your willingness co make a commitment.

Your interest in planning for the future.

But what if…

You need the money and can’t invest?

You can start and stop making regular investments at any time.

Thought primers …

The good thing about saving regularly…

If I thought that saving even a little made a difference…

Taking care of myself for tomorrow means…

At the thought of saying “no” today for a “yes” tomorrow…

When I really think about what I want…

If I could ever get ahead…

Steady As You Go - Dollar-Cost Averaging
Steady As You Go – Dollar-Cost Averaging

“It is a very funny thing about life: if you refuse to accept any­ thing but the best you often get it.”— w . Somerset Maugham

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