When we first started investing, we quickly realised that the hardest part wasn’t choosing what to invest in, but sticking with it month after month. That’s why we’re big fans of periodic investing, also called automated monthly investing or dollar-cost averaging (DCA). It’s one of the simplest and most effective ways to grow your wealth over time.
At Curvo, we see every day how this steady, hands-off approach helps Belgians build financial security without needing to time the market or pick individual stocks. All it takes is consistency.
In this article, we’ll explain what periodic investing is, why it works, how it compares to investing a lump sum, and how you can set up your own monthly plan the right way.
What is periodic investing?
Periodic investing means putting a fixed amount of money into your investments at regular intervals, usually every month. Instead of saving up a big lump sum or waiting for the “right moment” to invest, you simply invest on a schedule.
We’ve found that this approach fits naturally into everyday life. Most people get paid monthly, so it makes sense to invest monthly too. You build the habit once, and it runs automatically.
This method works particularly well when investing in ETFs: diversified and low-cost funds that let you benefit from the long-term growth of global markets without needing to pick individual stocks.
Why periodic investing works
Periodic investing has several benefits that make it one of the easiest and most effective ways to grow your wealth over time.
1. You stop trying to time the market
Markets move unpredictably. Even professional investors struggle to buy and sell at the right time. With periodic investing, timing doesn’t matter. You invest the same amount whether the market is up or down, which keeps you from making emotional decisions.
2. You average out your cost
By investing regularly, you buy more when prices are low and fewer when they’re high. Over time, this smooths out the price you pay for your investments and helps reduce the impact of short-term market swings.
3. It builds discipline and consistency
Your long-term results depend more on your behaviour than on finding the perfect investment. Automating your monthly contributions keeps you consistent. There’s no hesitation, no second-guessing, just steady progress.
4. It makes investing accessible
You don’t need a big lump sum to start. Even €50 or €100 a month gets you going. Many Curvo members begin small and increase their monthly amount as their income grows.
5. It reduces stress
Periodic investing keeps things simple. You don’t need to follow market news or worry about buying at the “wrong” time. Once set up, your plan runs quietly in the background while your money works for you.
Does periodic investing beat lump‑sum investing?
If you look purely at the numbers, investing a lump sum right away often wins. That’s because markets usually go up over time, so the longer your money is invested, the more it can grow.
But investing isn’t only about maths. It’s also about psychology. Putting in a large amount at once can be stressful, especially if the market drops right after. Many people end up waiting for the “perfect” moment, which often never comes.
Periodic investing, on the other hand:
- lowers emotional stress,
- spreads out your risk,
- smooths market volatility,
- and is far easier to stick with.
In the end, the best strategy is the one you can keep doing for years. For most people, that’s periodic investing.
How much should you invest monthly?
There’s no perfect number. What matters is finding an amount you can stick to comfortably month after month.
A simple way to decide:
- Cover your essentials first: rent, groceries, and bills.
- Build a safety net with 3 to 6 months of expenses in an emergency fund in a savings account.
- Then, decide how much of your income you can set aside for your future.
Many Curvo members invest between €50 and €500 a month, depending on their situation. The exact amount isn’t as important as building the habit.
Even small sums add up when you stay consistent. The earlier you start, the more time your money has to grow through compounding, and the less you’ll need to invest later.
How to start periodic investing
Setting up your monthly investing plan properly is key, especially with tax rules. Here’s how to get started.
1. Choose the right ETFs
Pick ETFs that are globally diversified, accumulating (so you avoid paying dividend taxes), and low-cost. These features make a big difference over time. Curvo’s portfolios are designed with Europeans in mind and already meet these criteria.
2. Automate your contributions
Automation is what turns good intentions into habits. With Curvo, you set a monthly amount and the app takes care of everything else. Your money is invested automatically into a diversified portfolio every month.
3. Stay consistent
The power of periodic investing comes from consistency. Markets go up and down, but your plan keeps running in the background, ensuring you keep investing no matter what.
4. Review once a year, not every week
You don’t need to monitor your portfolio constantly. A quick yearly review is enough to check that your plan still fits your goals.
The psychological advantage
One of the hardest parts of investing is managing your emotions. Periodic investing helps you stay calm through it all.
It protects you from:
- panicking when markets drop,
- chasing returns during rallies, and
- overthinking every investment decision.
By automating your plan, you remove emotion from the process. That’s what makes it easier to stay invested and staying invested is what drives long-term results.
A realistic example
Let’s say you invest €200 every month for 20 years in a diversified portfolio of ETFs.
If we assume an average annual return of 8%:
- Your total contributions: €48,000
- Your potential value after 20 years: about €118,000
More than half of your final amount comes from growth, not from what you invested yourself.
Looking at the historical performance of the MSCI World index, you’ll notice how compounding turns steady contributions into significant long-term growth:
That’s the quiet power of periodic investing, steady contributions, time, and compounding doing the hard work for you.
Summary
Periodic investing removes the stress and complexity from investing. It’s simple, disciplined, and effective, especially when combined with globally diversified ETFs. At Curvo, we built our app to make monthly investing effortless for Belgians. You set your plan, and we take care of the rest. If you want to grow your wealth without overthinking every market move, periodic investing is the best place to start. Discover how Curvo works.