What $100 a week in ASX shares could become in 20 years

If you’ve ever felt that investing is something only high earners or seasoned market veterans can do, you would be wrong.

You don’t need a lump sum to build serious long-term wealth. You just need consistency. In fact, one of the simplest and most powerful strategies available to everyday Australians is investing a small amount every week.

So, what could $100 a week, barely the cost of a couple of dinners out, turn into over 20 years on the Australian share market? Let’s find out.

Investing small amounts

When you invest regularly, you take advantage of something called dollar-cost averaging. Instead of trying to pick the perfect buying moment (which even the pros struggle with), you gradually build your holdings over time, buying more when prices fall and less when prices rise.

Combine this with the fact that the share market has historically returned around 10% per annum on average, and suddenly even modest weekly contributions can snowball into something life-changing.

Where to invest

You want to think about businesses that have strong growth drivers and sustainable competitive advantages.

Take ARB Corporation Ltd (ASX: ARB), which is a global leader in 4WD accessories that has steadily expanded internationally. Or Breville Group Ltd (ASX: BRG), which is an appliance manufacturer that has been growing for decades. Investment bank Macquarie Group Ltd (ASX: MQG) could also be worth a look given its long track record of strong shareholder returns.

These aren’t speculative micro-caps, they are established, profitable companies with clear runways for growth. And drip-feeding small weekly investments into quality businesses like these can quietly transform your financial future over time.

What $100 a week could become

Now for the big question. If you invested $100 every week and earned 10% per year on average, what would $100 a week turn into?

After 20 years, your weekly contributions into your portfolio could grow to around $315,000.

And remember, this doesn’t require picking the perfect stocks, timing the market, or taking huge risks. It simply requires staying consistent, focusing on quality, and giving your investments time to work.

You could even opt for a broad-based index fund like the Vanguard Australian Shares Index ETF (ASX: VAS) for Australia or the iShares S&P 500 ETF (ASX: IVV) for the United States.

Foolish takeaway

$100 a week may not feel like much today. But when you combine patience, discipline and the long-term strength of the ASX, it becomes a powerful wealth-building engine.

The best part? You can start anytime. And the sooner you begin, the more time compounding has to quietly turn small weekly savings into something extraordinary.

The post What $100 a week in ASX shares could become in 20 years appeared first on The Motley Fool Australia.

More reading

• How to invest and build wealth globally without leaving the ASX
• $10,000 invested in IVV ETF a year ago is now worth…
• Top 10 most-traded ASX shares last week
• 5 ASX ETFs to buy with $10,000 in December
• What $5,000 invested in ASX ETFs today could become in 10, 15, and 20 years

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended ARB Corporation, Macquarie Group, and iShares S&P 500 ETF. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended ARB Corporation and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.