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Being average consistently is better, and my wife says it’s enough (she swears).

You need to invest your money; you can't afford not to. Investing is the easiest and most effective way to grow the money you've already saved.

The biggest reason people avoid investing is that it’s a bad time in the market. Maybe a crash is coming, or the market is already weak, and things will drop further. It’s not about timing the market; it’s about time IN the market.

There’s a great way to solve this, and it is mathematically more performant than timing the market. It’s called Dollar Cost Averaging.

Your timing is terrible.

TLDR:  You don't need to be able to see the future to invest well. All you need to be is average at investing because the average is pretty good. And not “let’s order a second appetizer good” - more like “early retirement” good. Interested in learning more?

Dollars and Cents

Put down that magic eight-ball. We’re not talking about the one you and your buddy took with you to the bar last night; we are talking about the toy that tries to answer all life’s greatest mysteries with a simple shake. You don’t know what will work over the next 30 years.

The truth is almost nobody knows, and the least of all are professionals. 30 years ago, the internet could barely support loading a grainy, fake picture of Britney Spears in a bikini, and now tech stocks lead the market. So, invest like you don’t know because you truly don’t.

On $100k invested, the boring average annual return was $9.9k. That’s amazing for not even trying.

An investment so basic even Warren Buffet thinks you should do it.

Warren Buffet thinks you should invest in low-cost ETFs. It’s what he recommends his family does when he’s no longer around.

Sometimes called the “Pumpkin Spice Latte” of investors, Warren Buffet has become incredibly wealthy by following simple strategies that are assured wins. His investments will continue to grow his wealth without any additional input from him.

Get this: he’s not even investing in his own massively successful company, Berkshire Hathaway because even he can’t consistently beat the market overall.

What low-cost ETFs should I invest in?

If you’re a purist, there is only one: VV. Its following on the internet is legendary, as is the love of the company that runs the fund, Vanguard. There really is not a better option that maintains the flexibility of VV.

On the bond end of things (10% of the pie), the most true to Warren's intentions is SCHO. It’s short-term US Treasuries, which, while not as sexy as other similar options, is focused on safety and simplicity. It’s a great counterbalance to VV.

What’s the best tool to invest with?

There’s no better option than M1. It’s where I (Andrew) keep nearly all of my investments. You can use this pie to replicate Warren’s strategy.

The why is simple:

The last point will be a post on its own, but trust me, there isn’t a better option. I’ve tried them all. My tastes have evolved over time, but M1 is just excellent.

Chart of the Week

Above is a comparison of the three base components of the stock market.

Not to be confused with the trendy “Jazz” design that, for some reason, was on every disposable cup in the ‘90s:

Movement in the market can be explained by its three base components. Productivity growth, the short-term debt cycle, and the long-term debt cycle.

Productivity accelerates over the long term, so it pays to have a long-term time horizon. Simply having money in the market matters much more over an extended period than when you invested your money.

When you’re in it for the long term, timing only accounts for a tiny percentage of growth.

 PSA - January is coming, you need a budget

We plan to do a full budgeting post next year. Probably a few because it’s important, and you need to get on board.

That said, my favorite budgeting app by a long shot is Monarch.

They are running a deal through January 12th that will give you 50% off. Use the code NEWYEAR2025 to nab it. It’s already only $8.33/month.

There is no reason why you should not do this. It’s so cheap analysis paralysis shouldn’t even kick in.

After years of talking about money, I still struggle with spending less than I make. I couldn’t do it without Monarch.

Get 50% off Monarch, budget like a badass, and support the Newsletter.

The 10 Commandments of an Average Investor

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 “Set it and forget it.”

-Ron Popeil

Our Favorite Money Tools

🥧 M1 Finance - Don’t pay crazy fees to have someone invest your money; replicate their approach for free with M1 Pies.

🦋 Monarch - Automatically track your spending, create a budget, and track your net worth.

🏠 Fundrise - Invest in Rust Belt and Mid-Western real estate.

💸 Swagbucks - Get cash back from over 1,500 retailers, including Amazon, Target, and Starbucks.

🏦 Mercury - The best small business checking account, full stop. We use it for all of our businesses, including my personal checking. Create and manage virtual credit cards for every expense and never get overcharged again.

Let’s talk about it.

If you want to learn more, our Dollar Cost Averaging podcast episode is for you!

We discuss it over beers and give you an action plan to get started.

We’re the personal finance podcast you've been looking for.

May the cash flow always be in your favor,

Andrew and Lou - the Funny Money team