DOLLAR COST AVERAGING // In today’s market conditions, this is the only way to invest! Learn what dollar-cost averaging is, why it works, and how to do it. Dollar-cost averaging explained. Once you understand dollar-cost averaging, you’ll never worry about when to buy stocks, when to buy index funds, and whether you’re timing the market correctly or not. Dollar-cost averaging is the #1 stock market for beginners investing strategy. In this video, you’ll learn how to invest money safely with dollar-cost averaging.

***ATTENTION: I have a new Instagram and TikTok handle @itsrosehan ***
That’s my official account, and I will NEVER message you about investment schemes, so please be careful and block & report any scammers posing as me.

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***BOOKS I RECOMMEND 📚***

I Will Teach You to Be Rich (hilarious how-to book on personal finance for millennials)

The Little Book of Common Sense Investing (Jack Bogle’s classic advice on index funds)

InvestED (step-by-step, millennial-friendly advice on how to pick stocks like Warren Buffett)

Unshakeable (this book = courage. blast ALL the fears & misconceptions you have about investing)

Rich Dad Poor Dad (#1 selling personal finance book of all time… need I say more?)

Think and Grow Rich (the ultimate book on money mindset and wealth consciousness)

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***MY FAVORITE MONEY TOOLS 🖤***

YNAB (I literally can’t live without this budgeting app, so obsessed)

Wise (like Venmo but for international currencies – I use this app a LOT for my life in Mexico)

High-Yield Savings Accounts (don’t settle for 0% when you can get 3%+ on your savings)

Ledger Nano S (crypto storage hardware wallet, because “Not Your Keys, Not Your Crypto”!):

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DISCLAIMERS & DISCLOSURES ❤

This content is for education and entertainment purposes only. Rose does not provide tax or investment advice. The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. All investing involves risk, including the possible loss of principal.

This description contains affiliate links that allow you to find the items mentioned in this video and support the channel at no cost to you. Investing With Rose is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to www.amazon.com. Thank you for your support!

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Dollar Cost Averaging (DCA) is an investment strategy that allows individuals to mitigate the impact of market volatility and invest in financial assets over an extended period. It eliminates the need to time the market, which is notoriously challenging even for seasoned investors. This strategy involves investing a fixed dollar amount at regular intervals, regardless of the asset’s price. By consistently purchasing the asset, investors can take advantage of market fluctuations and potentially generate long-term returns.

The idea behind Dollar Cost Averaging is rooted in the concept of buying more units of an asset when prices are low and fewer units when prices are high. As a result, investors can mitigate the risk of investing a significant amount of money at a single point in time, only to see the asset’s value decline after making the investment.

To better understand Dollar Cost Averaging, let’s consider an example. Suppose an investor wants to invest $10,000 in a particular stock. Instead of investing the entire amount at once, they decide to divide it into monthly investments of $1,000 over the course of ten months. By doing so, the investor is exposed to different market conditions at each interval, potentially minimizing the impact of a sudden market downturn.

One of the significant advantages of Dollar Cost Averaging is that it is effortless to implement. Investors can set up automatic investments that deduct a fixed amount from their account at regular intervals, making it a hassle-free strategy for long-term investing. Additionally, by investing fixed amounts, individuals avoid succumbing to emotional decisions influenced by short-term market fluctuations.

The DCA strategy particularly appeals to individuals who prefer a disciplined approach to investing and are interested in long-term returns. By consistently investing over time, investors are less concerned about the asset’s immediate price and focus more on the overall trend and growth potential of the investment.

Moreover, Dollar Cost Averaging is a powerful strategy to accumulate wealth gradually. It allows individuals to benefit from dollar-cost averaging, meaning they can buy more units of an asset when prices are low and fewer units when prices are high. Over the long run, this can lead to a lower average cost per unit compared to investing a lump sum at a single point in time.

However, it is essential to understand that Dollar Cost Averaging does not guarantee profits or protect against losses. It is still subject to the performance of the chosen asset. While DCA mitigates the impact of sudden market shifts, it may underperform in a consistently rising market, as the investor is buying assets at higher prices over time.

It is worth noting that Dollar Cost Averaging is not limited to stocks; it can be applied to other financial assets such as bonds, mutual funds, or exchange-traded funds (ETFs). The strategy is versatile and adaptable to various investment vehicles to suit individual preferences and goals.

In conclusion, Dollar Cost Averaging is an investment strategy that allows individuals to invest fixed amounts of money at regular intervals, regardless of market conditions. It provides a disciplined approach to investing and mitigates the impact of market volatility. While it may not guarantee higher returns in a consistently rising market, DCA can be a useful tool for long-term investors seeking to accumulate wealth gradually.