FirstStepsInvesting

Decoder · How growth works

Dollar-cost averaging

Investing a fixed amount on a fixed schedule — say, $100 every payday — instead of trying to time a perfect moment. You automatically buy more when prices are low and less when they are high, and you remove the 'when do I start?' freeze entirely. Workplace plans do this by construction; you can set the same rhythm in an IRA.

For your first $100: This is how your first $100 becomes your first $1,000 without a single decision. Automatic beats heroic, every month, for decades.

Return, in plain wordsCompound growth, in plain wordsDividend, in plain words

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