Build Slowly and Steadily With Dollar-Cost Averaging
Let’s say you want to buy a silver of all 500 of the biggest U.S. corporations. By using the Vanguard 500 Index Fund ETF, which tracks the benchmark of S&P 500, you’ll have to pay around $367. Saving up for this amount is not impossible, but by then you’ll lose a little bit of time depending on your budget.
So, it’s better to take your budget into account from the get-go by transferring your preferred amount, sometimes as little as $5 but it could be whatever you like, from your bank to your brokerage account. Do this consistently, either every week or every month. Congrats, you’ve just done something that is known as dollar-cost averaging.
So this is a strategy that not only fits your budget, but it also ensures you buy more stock when it’s cheap, but less stock when it’s expensive.
