Money Matters! What is Dollar Cost Averaging?

Sarah Riegelhuth

Dec 02, 2014

So what is Dollar Cost Averaging?

The idea behind dollar cost averaging is to invest small sums of money regularly, regardless of how the market is behaving. The idea is that by doing this, eventually your income will increase. This is how Sarah explains it…

“We all do this when you think about it.  We have no control over when our employer makes a Superannuation contribution on our behalf.  The money just goes in and it’s invested by the Fund Manager the day that it hits the fund”, she said.

Don’t feel bad if you haven’t heard of this term before, we were pleased that even Sarah recognises that dollar cost averaging is a geeky term.  Now we know what’s involved, we think this makes perfect sense too.  Thanks Sarah!

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By Sarah Riegelhuth

Co-founder of Gen Y financial advisory firm, Wealth Enhancers and the League of Extraordinary Women, Sarah is passionate about two things: following your dreams, and loving your money! She is an award winning financial advisor and entrepreneur, featured in a variety of media including Kochie’s Business Builders, Women’s Agenda, Money Management, Channel 7's The Morning Show and Women’s Health magazine. Sarah’s book, Get Rich Slow, was of the most popular Dymocks finance titles in 2013. She is the founder of the 8 Week Money Makeover, an online money management program designed to help everyday Australians wipe their debts and build wealth, one step at a time" Contact: editor@thecarousel.com


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