Preface: For Whom and Why It Matters
This course is for disciplined savers who have finished the Investor Foundations path: debt-free, emergency fund ready, consistent with budgeting and paying themselves first.
You are now upgrading from Defense to Offense. Congratulations.
It is not for stock-pickers or timers. If you still feel the urge to trade headlines, bookmark this and return later.
“Everyone has a plan 'till they get punched in the mouth.” — Mike Tyson
Expect setbacks.
You’ll feel uncertainty, regret, and temptation to pause.
That’s normal.
You’re building a habit most never master — automatic compounding. Wealth.
The Mission
Turn financial discipline into an automated wealth machine.
Your three principles:
Simplicity compounds. One ETF, one process.
Automation beats intention. If it isn’t automated, it’s optional.
Patience outperforms brilliance. Time in market > timing the market.
Use Tax-Advantaged Accounts
For a U.S. investor earning $80,000 in 2025:
401(k) employee limit: $23,500
Total (employee + employer): up to $70,000
IRA limit: $7,000 (under 50), $8,000 (50+)
Key Lesson: Employer matching is effectively a guaranteed return — contribute enough to capture it fully.
Lesson 1: What Is DCA and Why It Works
Dollar-Cost Averaging (DCA) = investing the same dollar amount at fixed intervals.
No timing. No prediction. Just rhythm.
Buys more shares when prices drop.
Buys fewer when prices rise.
Converts volatility into long-term efficiency.
“Discipline turns randomness into returns.”
DCA vs Lump Sum: Lump Sum may win on math; DCA wins on behaviour (and our plan to save and invest regularly) — and behaviour decides outcomes.
In this course, our goal is to be passive, not active.
Without dollar-cost averaging (Lump Sum):
Timing | Amount | Share price | Share purchased |
Month 1 | $500 | $5 | 100 |
Month 2 | $0 | $5 | 0 |
Month 3 | $0 | $2 | 0 |
Month 4 | $0 | $4 | 0 |
Month 5 | $0 | $5 | 0 |
| Total invested: | Average cost/share: | Total shares purchased: |
| $500 | $5 | 100 |
With dollar-cost averaging:
Timing | Amount | Share price | Share purchased |
Month 1 | $100 | $5 | 20 |
Month 2 | $100 | $5 | 20 |
Month 3 | $100 | $2 | 50 |
Month 4 | $100 | $4 | 25 |
Month 5 | $100 | $5 | 20 |
| Total invested: | Average cost/share: | Total shares purchased: |
| $500 | $3.70 | 135 |
Key Lesson: VOO on the 1st. No matter what. That is the strategy.
Lesson 2: The Hungry Shopper vs. The Impulsive Investor
Objective: Identify emotional behavior and link it to poor investing outcomes.
When Hungry:
Every aisle looks like opportunity.
Your decisions are reactive, not rational.
You forget your list and your budget.
When Emotional in Markets:
You chase momentum stocks.
You buy without knowing why.
You confuse activity with progress.
Key Lesson: If hunger clouds judgment at the grocery store, greed does the same in markets.
The fix: Apply PAP before every trade — Plan first, Assess carefully, Proceed only if it fits your framework.
Plan: Create Your List Before You Shop
Objective: Design your investment “grocery list.”
At the Store:
Meal prep.
Set a budget.
Make a list.
In the Market:
Define your goal: income, growth, or preservation.
How much can I sustain every month?
Understand VOO has the 500 best companies, in 1 wrapper.
Best Practice:
Set and forget strategy.
Automate recurring contributions instead of spontaneous trades.
Remember: “The list is your defense against the aisle.”
Assess: Check the Label Before You Buy
Objective: Train your DCA muscle.
At the Store:
Compare prices and ingredients.
Check expiration dates and quality.
Put it in the cart.
In the Market:
Compare the holdings of the ETF.
Compare the fee structure (low vs high).
Set the recurring purchase.
Apply PAP: If it fails your assessment, it doesn’t go in your cart — or your portfolio.
Proceed: Buy with Intention
Objective: Execute trades only when your plan and assessment align.
At the Store:
Stick to the list and skip impulse buys.
Pay what you planned — not what’s on the end cap.
In the Market:
Buy VOO on a set schedule.
Maintain the frequency, increase the amount if needed.
Key Lesson: “Plan. Assess. Proceed — never improvise.”
Hungry Shopper | Impulsive Investor |
Buys junk food and regrets it later. | Buys meme stocks or hype tickers. |
Feels satisfied short-term, but worse later. | Gets dopamine hit from “buy” clicks. |
Overspends. | Overtrades. |
Wastes food. | Wastes capital. |
Risk Control: Your Shopping Budget
Objective: Learn to manage financial “calories.”
At the Store:
You wouldn’t spend grocery money on electronics.
You wouldn’t buy food you can’t store.
In the Market:
Don’t invest what you can’t afford to lose.
Invest in the best, forget about the rest.
Budget Tip: If you wouldn’t overspend at the store, don’t overleverage in the market.
Healthy Portfolio = Balanced Diet
Type | Grocery Analogy | Investing Equivalent |
Vegetables | Boring but essential | VOO (Value Stocks) |
Protein | Core strength | VOO (Growth Stocks) |
Treats | Small indulgence | VOO (Rebalancing) |
Water | Always needed | Cash reserves (Emergency Fund) |
“An undisciplined investor fills their portfolio like a hungry shopper fills their cart — fast, messy, and full of regret.”
Master PAP. Build habits, not hype. Feed your wealth, not your impulses.
Lesson 3: Build the System
You already learned to pay yourself first.
Now we redirect that payment to investments.
Automation Loop
Income → Checking (Direct deposit)
Checking → Brokerage (Automated monthly transfer on 20th)
Brokerage → VOO (Automated buy order for 1st of every month)
VOO → More VOO (Dividends reinvested via DRIP)
Key Lesson: If it isn’t automated, it’s optional — optional doesn’t compound.
Lesson 3.1: Why VOO (And Why Not SPY)
Your wealth is a snowball rolling downhill.
Every fee, tax drag, or trading impulse is a bump slowing it down.
VOO keeps the slope smooth.
VOO vs SPY: Same Index, Different Engines
Feature | SPY | VOO |
Expense Ratio | 0.09% | 0.03% (⅓ the cost) |
Structure | Unit Investment Trust (holds dividends) | Open-ended ETF (auto reinvests) |
Age | 1993 | 2010 |
Audience | Traders | Investors |
Liquidity | Highest on earth | Plenty for DCA |
Tax Efficiency | Moderate | Higher |
Rebalancing | None | Automatic |
30-Year Cost Impact | Smaller snowball | Faster growth |
Fee Drag Example:
$500 / mo for 35 years @ 10% return:
VOO ≈ $1.13 M
SPY ≈ $1.09 M → $39 k lost
Tiny friction × time = massive loss.
Compounding is like gravity — invisible but relentless.
✅ Simplicity ✅ Efficiency ✅ Reliability ✅ Calmness
Key Lesson: VOO is the best tool for the job.
Lesson 4: Broker Setup & Automation
4.1 — Choose Broker
Use one offering $0 commissions, fractional shares, DRIP:
Fidelity / Schwab / Vanguard / Robinhood (for simplicity).
Broker | Strength | Watch For |
Fidelity | Top automation, UI | None major |
Schwab | DRIP flexibility | slower ACH |
Vanguard | Classic index custodian | legacy UX |
4.2 — Automate Transfers
Set a monthly transfer on the 20th.
Calculate the amount as a comfortable % of income (10–20%).
Then set it as the dollar amount to buy on the 1st of every month
Set up the DCA purchase for the exact dollar amount as your transfer (buying based on $, not based on share count).
Fail-safe: Whether you are paid bi-weekly or monthly, the single monthly transfer will look just like a bill, and will settle in time for even short months like February. Having this time cushion provides peace of mind to set and forget.
4.3 — Automate Investments
Create recurring VOO buy orders.
Enable DRIP (Dividend Reinvestment Program) so dividends buy more shares.
Note: In taxable accounts, reinvested dividends still count as income — track basis.
4.4 — Fail-Safe Backups
If recurring purchase fails or market holiday blocks buy → manual purchase same day. Call your broker to rectify the issue to ensure automation persists.
4.5 — “Day 1 Win”
Don’t wait.
Open broker tab now, schedule your first recurring VOO buy ($50 minimum).
Take a screenshot titled “My Wealth Machine — Day 1.”
Immediate proof beats perfect timing.
Start the habit.
Key Lesson: Start the habit and never miss a month. Start small. Start now
Lesson 5: Behavioral Mastery & Mindset
Markets will drop. News will scream. You will doubt.
Four Rules:
Don’t time the market. Nobody can.
Don’t pause DCA during declines. That’s your discount.
Don’t check daily. Quarterly only.
Don’t compare portfolios. Different paths.
“Do nothing” is a decision. Make it the right one.
What If the Market Drops?
Scenario: You start today; next month VOO -10%.
Stay the course. History shows that DCA, through declines, outperforms waiting.
Down markets = sales.
Do nothing. Buy anyways.
What If the Market Pumps?
Scenario: You start today; next month VOO +10%.
Stay the course. Objects in motion stay in motion.
Up markets = trend is your friend.
Do nothing. Buy anyways.
“No-Touch Pledge”
Commit: I will not pause for 12 months. Sign it. Stick it on your desk.
“Quarterly Review Rule”
Check automation still runs. Nothing else.
Avoid decision fatigue.
“Accountability Circle”
Join a peer or online community. Shared streaks increase follow-through 65%.
Lesson 5: Milestones & Tracking
Track inputs, not prices.
Milestone | What to Record |
12 months | Streak intact → Reward yourself |
36 months | Raise contribution +10% |
60 months | Review net worth progress |
120 months | Celebrate halfway to millionaire |
Metrics
Total contributions
Shares owned
Dividends earned
Consecutive months invested
First Dividend Celebration
When you see your first DRIP reinvest, screenshot it. That’s proof of compounding alive.
Annual Audit
Verify that the VOO fee ratio is unchanged. Confirm DRIP on. No fund swaps.
Lesson 6: Taxes & Account Types (U.S.)
Account | Tax Timing | Best Use |
401(k) | Pre-tax | Employer match first |
Roth IRA | After-tax | Tax-free growth |
Taxable | Ongoing | Flexible access |
Key Lesson: Turn on DRIP in each account.
Lesson 7: Staying the Course (Advanced Behavior)
Quarterly No-Touch Rule: Confirm deposit, then ignore.
Raise Rule: Every income raise → +10% DCA amount.
Annual Fee Audit: Compare VOO vs SPY fund cost.
FAQs
Q: Should I add VGT, QQQ or SCHD?
A: Not until the VOO habit is 5 years old. Complexity kills consistency.
Q: International funds?
A: Optional later. VOO already covers multinationals.
Q: Tax-loss harvesting?
A: Not relevant to retirement accounts. Advanced topic; skip for now.
Q: Rebalance?
A: VOO auto-rebalances internally. No action needed.
Lesson 8: Putting It All Together
The Cheat Sheet
Broker open ✅
Bank link ✅
Recurring transfer ✅
VOO auto-buy ✅
DRIP enabled ✅
“Day 1 Win” screenshot ✅
No-Touch pledge ✅
Quarterly review calendar ✅
Key Lesson: Set it once, forget it forever — then watch time work.
Final Takeaway
You now own a machine that turns discipline into wealth.
Three unbreakable truths
It’s not about timing — it’s about time.
What you don’t lose (fees, mistakes) matters most.
Automation > motivation.
Stay mission-focused. Work now to enjoy life later.
What Comes Next
Now that you have the foundation, it’s time to move to Stage 3.
Stage | Course | Outcome |
1 | Financial Freedom Starts Here | The Pyramid Path to Wealth, Discipline, and Mental Fortitude |
2 | The DCA Machine | Automate compounding and scale your wealth. |
3 | ||
4 | The Algo Dojo | Active Mastery & Market Discipline. |