Getting into the investing habit
Learn all about monthly investing and how it can be one of your good financial habits!
Your financial wellbeing can benefit from good habits just like your general wellbeing can. One good financial habit is investing monthly, to get your money regularly working for you. There are several advantages to monthly investing and Dodl is designed to help you make the most of them – with speedy set up and simple management. Here we go through the pros of investing monthly and how to get into this good financial habit with Dodl. 📅
Why invest monthly?
When starting out investing, doing it all at once can feel a bit scary, so taking it a month at a time can be a great way to ease yourself in. Here are a few reasons why…
Little and often 💰
You don’t need a big stash of cash to start investing. You can do it with whatever you have to spare each month, and with Dodl that can be as little as £25. You’d simply drip this into your account via direct debit at the start of the month and use that cash to buy more of your chosen investment(s) a few days later. Then the cycle repeats! So you’ll gradually build up your investments with affordable amounts each and every month.
Automated & easy 🙌
Set it up and sit back. Monthly investing is an automated process, so once you’ve set it up you won’t need to remember to invest your spare cash each month – your money is put to work for you automatically, without you even lifting a finger. So you can sit back, relax and bask in your organisational glory!
Choosing the right time to invest can be stressful, especially for first-time investors, and honestly even professionals don’t always get it right! With monthly investing you’ll have a structure you can stick to – especially helpful when keeping our impulses in check around dips and peaks in the market. So take the stress out of when to invest by investing monthly.
A little something called ‘pound-cost averaging’ 🤔
A final advantage worth mentioning is the smoother returns monthly investing can bring – thanks to pound-cost averaging…but what is it?
When you put aside the same amount to invest each month, as you do with monthly investing, you’ll be buying more units or shares of an investment when its price is low, and less when the price is high. So you’re averaging out the price you’re buying at, reducing the risk of putting all your money in at the wrong point i.e. a market peak. ⛰
For example, I put aside £25 each month to invest in, let’s say, The Best Company in the World!!! 🎉 When the market is down and its share price is low at £5 per share, I’ll be buying up 5 full shares with my £25. But when the market is up and The Best Company in the World is thriving at a sky-high £10 per share, my £25 can only get me 2.5 shares. So I’m taking advantage of the market (and price) dip by buying more at that time, while protecting myself from buying all my shares when the price is on a high.
For all these reasons, investing monthly can be a great financial habit to get into. But always remember, your investments can go down in value as well as up, and you could end up with less than you put in over the months.
How to invest monthly with Dodl
Once you've chosen your investment, select the option to invest monthly. From here you can set up your monthly investment – just pick the account you want to have the investment in, and how much to invest in it each month. That done, you can leave the rest to Dodl. Every month, on the 10th or the next working day (the ‘investment day’), Dodl will process your order to buy more of your chosen investment automatically. 👌
Alongside your monthly investment(s), it's also a good idea to set up a direct debit. This’ll credit your Dodl account at the beginning of each month, ensuring you’ve enough available cash to process your monthly investment(s) on investment day.
And you can manage your monthly investments easily with Dodl, with the option to edit or cancel them up to midnight before investment day.
Make it monthly 📅
Investing monthly can be a really great option to have on your investing journey, made even better with Dodl because of its free and easy set up! If you’d like to make investing your monthly money habit, how about setting it up today?
🔔 Remember, investing carries risk and nothing in this article should be taken as advice - Dodl doesn't give advice, but we do hope the info is helpful!