The unbelievable power of regular investing

About Latest Posts Bruce JacksonBruce co-founded The Motley Fool UK in 1997. Now back in his native Australia, Bruce is …

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Motley Fool thinks share market investing should be a lifetime pursuit. Once you take the plunge, you should be prepared to keep investing in the market on a regular basis, ideally every single month.


1. Saving is a good habit.

2. Investing in the share market gives you an excellent opportunity to accumulate a meaningful nest-egg, over the long-term.

3. Over time, history has shown the share market to be the best performing class of asset of all, returning 11% per annum over the past 30 years.

4. Over the very long-term, the miracle of compounding returns can and will do wonders to your wealth.

Turn A Starting Investment Of $10,000 Into $1 Million

The Australian Securities and Investment Commission (ASIC) has an excellent savings and investment interactive calculator. Here are some potentially compelling outcomes as a result of saving regularly into the share market.

* $0 initial investment, then $100 invested per month, for 40 years, growing at 8% per annum, turns into $324,180.

* $2,000 initial investment, then $150 invested per month, for 38 years, growing at 8.5% per annum, turns into $513,725.

* $5,000 initial investment, then $200 invested per month, for 35 years, growing at 9% per annum, turns into $644,681.

* $10,000 initial investment, then $250 invested per month, for 35 years, growing at 9.5% per annum, turns into $1,001,462.

Obviously nothing is guaranteed, and future returns may lag historical returns.

But, you can control 2 things…

1. Your choice of asset class. Here at the Motley Fool, we think shares are best, and we think the evidence for investing in the share market is compelling.

2. The amount of money you commit to save and invest.

Save Little Now, Create Large Wealth Ahead

For people with a young family, a large mortgage and only one breadwinner, we realise saving and investing $250 per month might be a stretch.

But $100 per month? If you don't have credit card debt, or any other non-mortgage debt, we'd suggest regularly saving at least $100 per month is easily attainable. After all, if you break it down, if you save just $3.33 a day, over the course of a month you'll have saved your $100.

Once you get into the saving habit, you'll find you never miss that $100 or $200 per month. But you'll certainly see the fruits of your labour in the months and years ahead. As you can see, the magical million dollar mark is attainable.

Ready to take the saving and investing plunge? Zip on over to Your Simple 4 Step DIY Wealth Creation Plan and get cracking. We'll tell you exactly where to start, and exactly where to invest your savings.

More on ⏸️ How to Invest

A group of young people lined up on a wall are happy looking at their laptops and devices as they invest in the latest trendy stock.

Building a share portfolio as a young investor? Here's where I'd start

I think investing in ASX shares is a great idea. But where to begin?

Read more »

nerdy looking guy with glasses peeking out from under bed sheets
⏸️ How to Invest

How to avoid this costly ASX investor trap – it's harder than you think

Emotional investing is one of the most common mistakes people make. Here's how to avoid it.

Read more »

Young female investor holding cash ASX retail capital return
⏸️ How to Invest

How to turn $20,000 into $300,000 in 10 years with ASX shares

$20,000 investments in Domino's Pizza Enterprises Ltd (ASX:DMP) and these ASX shares 10 years ago would have made you rich...

Read more »

AGL capital raise demerger asx growth shares represented by question mark made out of cash notes
⏸️ How to Invest

What is an ex-dividend date, and can you profit from it?

What exactly is the ex-dividend date of an ASX dividend share? Is it something you can profit from for a…

Read more »

Five stacked building blocks with green arrows, indicating rising inflation or share prices
⏸️ How to Invest

What is reflation, and why is everyone talking about it?

Investors are starting to talk about the dangers of 'reflation' for the ASX share market. Here's what that means for…

Read more »

asx share price on watch represented by investor looking through magnifying glass
⏸️ How to Invest

Here's why Warren Buffett prefers buybacks to dividends

Berkshire Hathaway Inc (NYSE:BRK.A)(NYSE:BRK.B) has been buying back its own shares. Why is that better than paying a dividend for…

Read more »

⏸️ How to Invest

Why I think Warren Buffett is right to think a market crash is always coming

Following Warren Buffett’s lead in planning for the next market crash could be a profitable long-term move, in my opinion.

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »