Start Using Your Paid Time Off! It’s Good For You (And Your Career)

People are increasingly paying more attention to how their jobs affect their health. They want a healthier work-life balance that includes more paid time off (PTO) and are willing to change jobs to get paid sick days and more vacation time.

What Is Dollar-Cost Averaging?

Dollar-cost averaging (DCA) is an investment technique that entails investing a fixed amount of money regularly over extended periods in the same fund or stock. The investor doesn’t consider the asset’s price at the time of purchase.

Understand How Dollar-Cost Averaging Works

Dollar-cost averaging is not a buy-and-forget strategy. You still need to buy wonderful, strong companies. You have to do your research and identify companies that are worth investing in.

Why Dollar-Cost Averaging

Unless you’re buying tens of thousands of shares you won’t notice a $10 price change in an asset’s price from one month to the next. Likewise, when you’re only buying one or two, you probably won’t notice a significant difference in a $50 price change.

Dollar-Cost Averaging Example

Let’s say we have Mary who started a Roth IRA. She sets aside $100 a month to invest in a NASDAQ index fund. The average purchase price is lower in December because she bought shares in the other months. If you had kept the money in a savings account, you would have missed out on the compound interest from January through November.

How to Start Dollar Cost Averaging

First, you need a budget.  You need to know how much money you have, how much you need to live, and how much you have left to save/invest.  On average, it’s recommended that you save at least 10% of your before taxes earnings every month.