24: What Is Dollar Cost Averaging and How Does It Impact Your Wealth?

<p>🎙 Dollar cost averaging is a common investing strategy that’s often considered to be good for beginner investors and those investing under a long term buy and hold strategy. But it may not be the best option for you. How does it work? And how does using a dollar cost averaging strategy impact your wealth? 🤔</p> <p><strong>This episode discusses topics like:</strong></p> <p>🌟 How dollar cost averaging works and how you can implement this strategy;</p> <p>🌟 How dollar cost averaging can be beneficial for beginners and emotional investors; and</p> <p>🌟 How dollar cost averaging can increase your wealth and when it’ll result in you leaving money on the table.</p> <p><strong>Links from this episode:</strong></p> <p>Episode transcript and show notes: <a href= "https://www.papermoneyco.com/24-dollar-cost-averaging">https://www.papermoneyco.com/24-dollar-cost-averaging</a></p> <p>Dollar Cost Averaging: Truth or Fiction study by Morningstar: <a href= "https://www.morningstar.com.au/learn/article/the-dollar-cost-averaging-myth-why-lump-sum-i/197410"> https://www.morningstar.com.au/learn/article/the-dollar-cost-averaging-myth-why-lump-sum-i/197410</a></p> <p>Investment frequency calculator: <a href= "https://investcalc.github.io">https://investcalc.github.io</a></p> <p><strong>Time codes:</strong></p> <p>00:00 Hello & Welcome!</p> <p>02:11 What Is Dollar Cost Averaging and How Does It Work?</p> <p>11:38 FIRE & Investment Calculator Spreadsheet</p> <p>13:40 Advantages and Benefits of Dollar Cost Averaging</p> <p>16:55 Disadvantages of Dollar Cost Averaging</p> <p>21:30 How Priya Invests</p> <p>24:32 Next Weeks’ Episode</p> <p><strong>Remember to:</strong></p> <p>Join our exclusive community by becoming a Patron: <a href= "https://www.patreon.com/girlonfirepodcast">https://www.patreon.com/girlonfirepodcast</a></p> <p>🤩 Subscribe so you don’t miss any future episodes.</p> <p>🏆 Rate and review the show on Apple Podcasts: <a href= "https://www.papermoneyco.com/podcastreview">https://www.papermoneyco.com/podcastreview</a></p>