top of page
Search

How to increase your investments over time?

  • Writer: Tomasz Tomczyk
    Tomasz Tomczyk
  • Feb 1, 2021
  • 1 min read

Many people ask whether and in what time intervals to increase their involvement in investments. Therefore, if your investment is long-term (at least a few months), and your monthly income generates a surplus, it will always be a good idea to invest a surplus rather than keep it on an interest-free bank account.


The best way is to make a monthly recurring payment. Frequent deposits average the purchase price and each copy is made at the current market prices. In this way, each earlier deposit works longer than the previous one and in total it can give a greater return than a one-time larger deposit, say once a year. By paying less often but larger amounts, we also risk buying when the market is on a local hill.


This is not always the rule. However, the longer you invest the more true it is. There are times when the market records large local drops that last a day or two. Therefore, it is good to have some capital prepared to make additional payments at such times.


Your investment can be a typical piggy bank and paying small amounts to it for 10 years, you will be surprised how fat it will be at the end ;-) There is practically no scenario that the sums paid in such a period would give a negative result in such a long time


 
 
 

Comments


Ask me a question!

Message sent!

© 2021 by Tomasz Tomczyk

Subscribe to new posts!

Thanks for your subscription!

bottom of page