2270: Dollar Cost Averaging by Ramit Sethi

Optimal Finance Daily - Financial Independence and Money Advice

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Investing, Business, Education, Self-improvement

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🗓️ 12 April 2023

⏱️ 8 minutes

🔗️ Recording | iTunes | RSS

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Summary

Ramit Sethi discusses dollar cost averaging Episode 2270: Dollar Cost Averaging by Ramit Sethi Ramit wants to use money to say YES. He knew there was a better way to live a rich life—if we could use psychology to focus on what actually works. Not just for personal finance, but all aspects of life: money, careers, relationships, business, fitness, and more. Since then, he's been testing and sharing his findings with the world via I Will Teach You To Be Rich. He's also written a New York Times bestselling book, been profiled in a 6-page Fortune article, and been pictured next to Warren Buffett in Forbes Magazine, as well as been featured by a long list of media, including the Wall Street Journal, ABC News, NPR, Fox Business, PBS, CNBC, and more. He also has tons of documented success stories—more than 20,000. The original post is located here: https://www.iwillteachyoutoberich.com/blog/dollar-cost-averaging/ Visit Me Online at OLDPodcast.com Interested in advertising on the show? https://www.advertisecast.com/OptimalFinanceDaily Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	This is Optimal Finance Daily, Episode 2270, Dollar Cost Averaging by Ramit Sethi of
0:07.1	I Will Teach You To Be Rich.com.
0:09.6	And I'm your host and personal finance enthusiast, Diana Mariam.
0:13.8	Welcome back to another edition of Optimal Finance Daily, where I'll share an article that
0:18.6	can help you live a happier and more financially sound life.
0:22.4	So with that, let's get to today's post and start optimizing your life.
0:30.7	Dollar Cost Averaging by Ramit Sethi of I Will Teach You To Be Rich.com.
0:36.7	When I want to sound smart and intimidate people, I calmly look at them, chew on a muffin
0:42.4	for a few seconds, and then throw it against a wall and scream, do you dollar cost average?
0:49.5	People are often so impressed that they slowly inch away, then whisper to people around
0:54.5	them.
0:55.5	You can only guess that they're discussing how suave and knowledgeable I am.
1:00.3	Dollar Cost Averaging, investing slowly over time.
1:04.2	Anyway, Dollar Cost Averaging is a phrase that refers to investing regular amounts over
1:09.4	time, rather than investing all of your money in a fund at once.
1:14.0	Why would you do this?
1:16.1	Imagine if you invest $10,000 tomorrow and the stock drops 20%.
1:20.7	At $8,000, it will need to increase 25%, not 20% to get back to $10,000.
1:28.0	By investing at regular intervals over time, you hedge against any drops in the price.
1:33.8	And if your fund does drop, you'll pick up shares at a discount price.
1:38.4	In other words, by investing over time, you don't try to time the market.
1:43.3	You use time to your advantage.
	...

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