At Clover we encourage all clients to set a goal of investing a set amount each month. It’s not a requirement but it’s highly recommended!
Here are five reasons why we think you should set a monthly investment goal —and stick to it.
It helps you become more disciplined.
Setting a monthly goal is a great way to keep yourself accountable with your finances. When you put your money to work by investing, you’ll have less temptation to spend it!
If the market is going down, you get more for your money.
If you’re investing regularly, there’s a silver lining if the market dips — you’re buying while there’s a sale on! This technique, known as “Dollar-Cost Averaging”, can be advantageous for investors who have the time and temperament to harness its power.
Your portfolio will be rebalanced more often.
Over time, all portfolios will “drift” from their initial composition (the nerd term being ‘Strategic Asset Allocation’). When you invest regularly, we’ll periodically determine the right amount of each investment to top-up, and do so when the cash balance in your account reaches the required amount.
It’s free for you.
If you use Clover, you don’t need to pay brokerage fees every time you purchase new investments. So, there are no additional fees for investing often. We don’t think you should be penalised for doing the right thing by your future self. No-fee deposits are a nice benefit of using Clover—take advantage! Find out how Clover works.
It adds up.
Investment compounding was hailed as the eighth wonder of the world by Albert Einstein, and with good reason! Compounding occurs when the returns on an amount of money itself generates returns. You need time for compounding to work its magic, so the earlier you start, the better off you’ll be.
What if you miss a month?
No worries. Life is complicated, and even the best plans get interrupted. Feel free to add more, less, or even skip a month when you need to.
Not investing yet? Learn more about our investment strategy.
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