If you watch your finances, then you know getting a good return on your money can be very difficult these days. With inflation going up and up, and interest rates sinking lower and lower, it seems to be a no win situation. However, there is a method that not many people know about, a method that will almost certainly guarantee your long term success.
The stock market has long been known to create massive amounts of wealth for some people. Fortunes have been made again and again. However, just as the markets are incredibly lucrative, they are also very dangerous. What if there was a way to get the benefits without the risk?
The secret is something called dollar cost averaging. This is when you place small amounts of money every month into the stock market. Instead of taking a huge sum of cash and betting it all at once, dollar cost averaging has you consistently investing small amounts.
When you put in the same amount of money every month, it works out in the long run. When the market is down, you are buying more shares. That way, when the market goes back up, as it always does, you will be making a lot of money with those shares.
The trend of the general market is up. Sure, there may be some bad years in there, even a few bad years in a row. But this works to your advantage, because during those bad years you'll be buying more shares. So when your stocks start to go back up, you'll be making a lot of money.
Most mutual funds are perfect for this kind of thing. Any fund that is any kind of a growth fund will work fine. Just set up your bank account to send fifty bucks a month or so to the mutual fund, and forget about it. In twenty years, you'll be very wealthy.
There's no greater way to build wealth over the long term as this. It's low risk, and will slowly turn you into a wealthy person.
The stock market has long been known to create massive amounts of wealth for some people. Fortunes have been made again and again. However, just as the markets are incredibly lucrative, they are also very dangerous. What if there was a way to get the benefits without the risk?
The secret is something called dollar cost averaging. This is when you place small amounts of money every month into the stock market. Instead of taking a huge sum of cash and betting it all at once, dollar cost averaging has you consistently investing small amounts.
When you put in the same amount of money every month, it works out in the long run. When the market is down, you are buying more shares. That way, when the market goes back up, as it always does, you will be making a lot of money with those shares.
The trend of the general market is up. Sure, there may be some bad years in there, even a few bad years in a row. But this works to your advantage, because during those bad years you'll be buying more shares. So when your stocks start to go back up, you'll be making a lot of money.
Most mutual funds are perfect for this kind of thing. Any fund that is any kind of a growth fund will work fine. Just set up your bank account to send fifty bucks a month or so to the mutual fund, and forget about it. In twenty years, you'll be very wealthy.
There's no greater way to build wealth over the long term as this. It's low risk, and will slowly turn you into a wealthy person.
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