I’m a fan of systems.
Benefits of systems:
– Limit or eliminate choice
– Measurable
– Consistent
– Easily tweak, improve, and measure the result of the change
– Free up mental energy
I’m a fan of consistency.
Benefits of consistency:
– Habit formation
– Momentum
– Erosion
– Muscle memory
I’m a fan of long-term thinking.
Benefits of long-term thinking:
– Planning for what is important instead of what feels urgent
– Planning based on results instead of emotion
– Seeing the full picture and how it can unfold
– Better able to handle ups and downs
I’m a fan of doing what is doable.
Benefits of doing what is doable:
– Less stress on the system
– Can maintain for longer periods of time
– Reduces feelings of constraint
– Reduces mental anxiety
Dollar cost averaging is an example of these principles in the financial world.
Dollar cost averaging is an investment strategy where a set amount is invested at set intervals with the goal of reducing the impact of volatility on large purchases of financial assets such as equities.
You can use the principle of dollar cost averaging in every area of your life.
Health Cost Averaging – invest a set amount of resources on your health at set intervals.
Relationship Cost Averaging – invest a set amount of resources on your relationships at set intervals.
Where can you “dollar” cost average your life?
Brett “Dollar Cost Averaging to Success” Denton