What is Dollar cost averging?

 

    What is the best way to reduce the risk when in the market? What should do if the market drop, pull money out or deposit more? These are other questions I usually get asked, and how do the wealthier keep getting wealthier? It's simple, they understand how to use "Dollar-cost averaging" and understanding that your buying units when investing. In my opinion, I believe this is one of the best concepts for investing as its systematical. no need to think whether to time it or have any fear to pull out. Simply, it is just separating your investment into small amounts so it goes into the market at different time slots. This way it wouldn't matter if the market when goes up or down, since this way your spreading out the risk. This is something that blew my mind on how investing works, and I suggest everyone take sometime out to read throught it on a website like Mackenzie Calulator. It not only helped grew my own investments but also helped many understand that investing is not a complicated matter but simply just have a habit of saving. 

Remember that saving is a discipline by choice at the end of the day, and you can decide whether to save for your financial future, do not put it off as a last thought. It can really put you far back from those who started earlier.