#85 Dollar-Cost Averaging and a Danish Philosopher

The Highlights This Week:

Fattening The Wallet 💰️ 

• Making Cents of Dollar Cost Averaging

• Hustle Hub: All About Investing

Elevating Your Brand 🤝 

• Ammonia? AI police? All-New Convo Starters in Did You Know?

Boosting Your Productivity 📊 

• Expert Advice on the Power of Walking

• Become a More Productive Investor with any of our Content for Your Commute

Making Cents 💰️ 

What Does Dollar-Cost Averaging Mean?

Short and Sweet: Dollar-cost averaging (DCA) is the strategy of investing a fixed amount of money at regular intervals into stocks or funds over a certain period of time, regardless of price.

You basically buy stocks at different prices over a certain period of time instead of one lump-sum at a particular time.

Why It Matters: Because this strategy would eliminate the effort required to attempt to time the market for the best price.

It helps you invest confidently without stressing over market swings, allowing you to remain calm, consistent, and focused on long-term growth.

Breaking It Down: The Benefits of Dollar Cost Averaging:

• Avoid mistiming the market – Trying to time the market can backfire. DCA removes this risk by keeping you invested at regular intervals.

• Takes emotion out of investing – You won’t be as tempted to make rash decisions when the market drops or skyrockets because you’re following a disciplined plan of investing.

• Focuses on the long-term – With DCA, you’re thinking big picture. Your goal is steady growth over time, not overnight riches (or losses) from the next tech stock.

EXAMPLE from Investopedia:

A prime example of long-term dollar-cost averaging is its use in 401(k) plans, in which employees invest regularly regardless of the price of the investment.

With a 401(k) plan, employees can choose the amount they wish to contribute as well as those investments offered by the plan in which to invest. Then, investments are made automatically every pay period. Depending on the markets, employees might see a larger or smaller number securities added to their accounts.

O.T.F
O.F.T: One Final Thought

This is not intended to be financial advice.

Content featured in this section is meant to simply present different options to you; we simply want to share financial concepts in an accessible way that you can use at your own discretion to manage money and build wealth. So DCA may not be the right investment strategy for you, and that’s okay - we’re just trying to break this stuff down so you can make sense cents of it.

Hustle Hub 📈 

• YOUR SUCCESS: Get $$$ - The stock market is a hustle, and if you want to avoid getting hustled, you should probably take your cues from the billionaires who run it. Here’s the index fund they’re replacing Nvidia with.

• THEIR SUCCESS: Get Inspired - This saving strategy grew one man’s net worth from $50K to $1 MILLION in 15 years.

• YOUR SUCCESS: Get Educated - In light of an investment-focused Making Cents, here’s the latest update on the stock market, the state of the dollar, and more.

   

Expert Advice 💭 

Courtesy of the “3-2-1 Newsletter:”

Who is Soren Kierkegaard?

• He was a “Danish theologian, philosopher, poet, social critic, and religious author who is widely considered to be the first existentialist philosopher.” He died in 1855, so we regret to inform you that he doesn’t have an X account to follow or a newsletter to sub.  

O.T.F. 
O.F.T - One Final Thought

Despite having died almost 200 years ago, Kierkegaard’s advice with regards to walking still rings true (and will forever).

A quick Google search will generate countless results for both the benefits of walking and the consequences of sitting too much, so Kierkegaard was truly ahead of his time…or it’s just common sense:

Being active = good.

Today’s theme is investing, and in that spirit, we remind you once again to invest in yourself. That means not forgetting about your mental and physical well-being.

Content For Your Commute🚶 🚗 🚄 

ON FOOT: Want to make your morning walks more lucrative? Fire up any podcast from The Investor’s Podcast Network and then apply what you’ve learned when you get to your desk. Two that stood out to us:

• “We Study Billionaires” is the largest, most popular stock investing podcast in the world.

• “Millenial Investing” targets people who are new to investing.

TRAIN TIME: Considered by at least one person to be the best article ever written about investing, here is “The Super Investors of Graham-and-Doddsville” by Warren Buffett.

FIRST CLASS: Any book from this “Best Of” list will make your flight a productive one!

Did You Know 🤔 

• Self-Interest: Did you see that both Big Oil and the U.S government are investing BIG into ammonia?

• Human Interest: Did you know that responding to work emails during non-work hours accelerates employee burnout?

• Artificial Interest: Did you see Larry Ellison’s take on an AI police system? 

Before You Go

I hope you enjoyed this week’s edition. Next week, we’ll be back with two AI-forward content sections and a new Cool Communicator.

See you then!

You are now On The Fly and In The Know.