Understanding Your Subscriptions

This type of investing, as you’ve probably already guessed, is not new. Dollar cost averaging involves making regular investments to your account according to a set schedule. Dollar-cost averaging is one of the most effective ways to accumulate savings and reduce volatility. You’re already on track if you have a workplace retirement plan such as a 401k.

Dollar Cost Averaging smooths your purchase price and ensures that you don’t put all of your money into a high-priced stock. This method of investing is especially useful in a market downturn, as it allows you to purchase stocks at low prices when most investors are afraid to do so.

Dollar cost averaging has three distinct benefits:

Don’t mistime the market Spoiler Alert: You can’t time markets. Don’t even bother to try.

Set it and Forget it – Take emotion out of investment

Think long-term – Consistently build wealth in retirement

Anything is better than Nothing

Dollar cost averaging helps investors avoid emotional decisions when the markets fluctuate. It also helps them stick to their plan, no matter what happens on the market.

Set up your payments in the same way as your subscriptions. You can choose to invest biweekly or monthly at a rate that suits you. You can automate your Spotify, Netflix subscription, food delivery, shaving kits and monthly flower subscriptions that you gave to your spouse on Valentine’s Day.

How much should I invest? Start early and invest anything.