Is It Recommended to Buy Monthly Shares or Put Money Towards Existing Shares?

Buying shares every month in the same company is called dollar-cost averaging. Doing it over a long time ensures your average cost per share is the same as the average stock price over that period.

Some financial advisers prefer this investment strategy.

However, the biggest challenge with the strategy is that it increases your brokerage fees for your purchases. Currently, most discount brokers charge the same fees irrespective of how many shares or dollars you buy or sell in a transaction.

That said, there is no need to set rigid rules for when to buy shares. It’s not about buying monthly shares or putting money towards existing shares.

It’s all about developing a good habit of analyzing stocks regularly and honing your skills for valuation, fundamental analysis, strategic thinking, market research, and more.

Find time every day to screen for stocks that fit your comfort zone and dive deeper into anything that looks good. Do this every day but do not purchase shares monthly. Only buy shares when you see the solid upside, and that could be weekly, monthly, or even quarterly - it just depends on what you’re seeing.

We would recommend putting the majority of your money in a standard investment vehicle such as IRA, 401k, mutual fund, etc. but have some little savings for personal investing where you can practice and develop skills.

Obviously, exercise diligence and only do this when you are comfortable investing on your own. Remember, you need a whole different mindset when approaching stocks with your own money on the line, however, that impels that you learn how to value stocks thoughtfully and adequately.