Automate your investments from "summary" of The Bogleheads' Guide to Investing by Taylor Larimore,Mel Lindauer,Michael LeBoeuf
Automating your investments is a simple yet powerful concept that can have a significant impact on your financial future. By setting up automatic contributions to your investment accounts, you can ensure that you are consistently saving and investing for the long term without having to think about it. This approach eliminates the need to constantly monitor the market or try to time your investments, which can be stressful and often counterproductive. Instead, by automating your investments, you can take advantage of the power of dollar-cost averaging, which means you will be buying more shares when prices are low and fewer shares when prices are high. This can help smooth out the ups and downs of the market and reduce the risk of making emotional decisions based on short-term fluctuations. By automating your investments, you are essentially putting your financial future on autopilot, allowing you to focus on other aspects of your life without sacrificing your ability to build wealth over time. In addition to simplifying the investment process, automating your contributions can also help you stay disciplined and consistent in your saving and investing habits. It takes the guesswork out of the equation and ensures that you are consistently putting money towards your long-term goals, whether that be retirement, a down payment on a house, or some other financial objective. By setting up automatic contributions to your investment accounts, you can take advantage of the power of compounding returns and harness the benefits of a long-term investing approach. This strategy can help you build wealth steadily over time and increase the likelihood of reaching your financial goals. So, consider automating your investments today and start building a more secure financial future for yourself.
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