Life lessons can come from a variety of areas. I find it highly-rewarding when I can extrapolate a life lesson while I’m learning about other things. In this case, I was able to do just that.

Personal finance is part of personal development. Regardless of how you feel about money, it’s a necessity in life. For me, money is about security, freedom, and experiences.

As I was reading about investing strategies, I came across the common concept of “dollar-cost averaging.”

According to Investopedia:

Dollar-cost averaging (DCA) is an investment technique of buying a fixed dollar amount of a particular investment on a regular schedule, regardless of the share price. The investor purchases more shares when prices are low and fewer shares when prices are high. The premise is that DCA lowers the average share cost over time, increasing the opportunity to profit. The DCA technique does not guarantee that an investor won’t lose money on investments. Rather, it is meant to allow investment over time instead of investment as a lump sum.

The key takeaways here:

  • Buying a fixed $ amount, regardless of price
  • Operate on a buying schedule
  • It will account for when the stock price is high and low
  • It focuses on investment over time

It is an investment practice that the great Warren Buffett advises people should follow. It’s something I recommend, too (I am not an investing guru, thus take my advice with a penny of stocks).

Warren Buffett is a proponent of dollar-cost averaging. Source: A Medium Corporation

From a different lens

As you astutely observed, I highlighted one word per takeaway- fixed, schedule, high and low, and over time.

These takeaways can be applied to a success as well. We all can agree that success is not something that happens overnight. Even if it appears that way.

Success is a product of consistency, meeting deadlines, high and low events, all happening over a length of time. Do you see where I’m going with this?

A more specific use case is how I use it for the Secondhand Success.

Creatively

Every weekday, after I complete my morning routine, I start my day off by writing for an hour. I set apart 60 minutes to focus on content creation. I look through the list of post ideas I have and go to town. This is my fixed amount of creativity and my scheduled investment into the blog.

The regularly scheduled hour anticipates and accounts for the days where my creative juices hit a wall. Conversely, some days, writing for an hour doesn’t seem like enough time. I feel that I can go for hours with my thoughts.

If I’m on a creating spree, and the hour is about to end, I will jot down the ideas and concepts I had in mind at the time.

I consistently limit myself to that morning hour to remove the anxiety of the low days. I know that  tomorrow, I have another opportunity to create, and my consistent effort accounts for my creativity drought. This is my high and low.

There are morning where everything I produce is crap. Some times I often feel like the person in the picture. Source: SaintLuxx

Blogging daily for 4 months has brought to fruition a new habit that I deeply enjoy. Writing.

I am passionate about writing because it is a mixture of other great habits. Writing is a product of me being introspective, observant, a reader, and a student of life.

I plan to write as much as I can, as often as I can, for as long as my fingers allow me to. This is my work over time.

Remember that life lessons can come from anywhere. Be open-minded and mindful. You never know where or when you’ll learn something new about yourself.

Readers, what are other areas of life where you can apply the principles of “Dollar-Cost Averaging?”