Investing consistently is the very best thing you can do for your future you. I get it the struggle is real! There are so many things vying for our attention that it’s easy to put things off or forget about them completely. Your future will be here before you know it. Believe me, I woke up & found myself at 49! How the hell did I get here so quickly?

Your future you will thank you for taking the time today to plan for tomorrow. What do you want to be or do when you grow up?

Do you want to:

  • Travel the world
  • Open a restaurant
  • Pay for your kids to go to college
  • Live your future life comfortably

If you answer yes to any of these things then you need to come up with a plan now rather than later.

MAKE IT A HABIT

Investing consistently, a bit out of every paycheck, is powerful. There’s the plain and simple fact that you’re building up your wealth, deposit by deposit. And if you put it on autopilot, there’s the whole “out of sight, out of mind” thing.

There’s another reason why the practice of consistent investing has historically been good for investors. And it’s so compelling that it even has a name:

DOLLAR-COST AVERAGING

Boring term. But a BFD for your bottom line.

Dollar-cost averaging is investing a consistent dollar amount at regular intervals of time, no matter what’s going on in the market. Example: a $100 recurring deposit into your investment account every month.

Why Does It Matter?

Ellevest says investors want returns. And some investors, in an attempt to earn as much in returns as possible, make a grave mistake: attempting to “time the market.” They think they can guess what will happen next, and try to “buy low” and “sell high.”

Bad idea. No one — no one — knows what the markets will do tomorrow. Not us. Not that confident-sounding guy on TV. Not even the people who are paid to do it.

That means you’re inevitably going to feel it on days when the market goes down. Bummer, yes, but it’s not all dark and gloomy. Here’s why: When the market’s down, that $100 deposit will get you more shares of stock. (That’s why you might hear people say that the markets are “on sale.”)

Example

Say the market was humming along, then plummeted, and then started to come back up.

Here’s what would happen if you were to keep investing consistently the whole time:

And here’s what would happen if you were to keep your money in a bank account while the market was down and then invest what you’d saved once it started to come back up:

In the first example, while your investments did lose value temporarily, it worked out pretty well for you after the market rebounded. In the second example, you missed out.

Back to real life. By using dollar-cost averaging, you take your own emotions (aka an investor’s worst enemy) out of the equation. You get rid of the risky guesswork, make investing a solid habit, and give yourself the opportunity to grow your net worth steadily over time. Pretty compelling reasons to invest regularly, right?

Here’s a compelling reason why “regularly” should start … right now.

Are you ready to start investing in your future you? Ellevest can help!

*I’m excited to work with Ellevest to start conversations about women and money. If you become a client, I will be compensated.

Rena

Hi! I'm Rena! Pronounced /`ree-nuh/. I'm a 49-year-old wife, mom, and grandmother & I love to help women just like you create an online business by connecting the technology needed to make that business successful saving you time & money!
Rena
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