Building wealth isn’t just about making big investments all at once—it’s about creating small, consistent habits that make investing a regular part of your life. Here’s why regular investing matters and how simple habits can help you reach your financial goals.
1. The magic of regular investing
Investing regularly, no matter what the market is doing, helps you benefit from dollar-cost averaging. This means you invest a fixed amount regularly, which can lower the impact of market ups and downs. You’ll buy more shares when prices are low and fewer when they’re high, without stressing over market timing.
2. Building consistency
Making investing a habit builds discipline. Start by automating your investments—set up automatic transfers so you invest without even thinking about it. Also, make a point to review your investments regularly, like once a quarter, to stay engaged and make adjustments when needed.
3. The power of compounding
Regular investing allows you to benefit from compound interest—earning returns on both your original investment and the gains over time. Even small amounts can grow significantly if you start early and stay consistent.
4. Reducing risk
By investing regularly, you spread out your risk. This way, you avoid the danger of putting all your money in at a high point in the market. Regular investments lead to more stable returns over time.
5. Hitting your goals
Small, steady investments can help you achieve big financial goals, whether it’s buying a home, funding education, or saving for retirement. Set clear goals, start small, use technology to make it easy, and celebrate your progress along the way.
Incorporating regular investing into your financial routine doesn’t have to be complicated. By starting with small, manageable steps and staying consistent, you can build wealth over time. Remember, it’s the steady, ongoing effort that pays off in the long run.
To learn more about investing, go to Investing in the CommBank app.
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