Getting started with ASX shares can feel overwhelming — especially with only a small amount to invest.
But it is important to know that you don't need to be a financial wizard or have deep pockets to start building long-term wealth. In fact, even $1,000 is enough to take that all-important first step.
And if you're a beginner, the best move isn't to try and pick the next Xero Ltd (ASX: PME) or time the market perfectly — it is to keep things simple, diversified, and low stress.
Here's how I'd invest $1,000 into ASX shares if I were just starting out today.
Keep it simple with an ETF
When you only have $1,000, you want maximum diversification in a single trade. That's where exchange-traded funds (ETFs) shine. They give you instant exposure to a broad mix of companies — often hundreds — without the need to research individual stocks.
If I had to pick just one ETF to start with, I'd seriously consider something like the Betashares Nasdaq 100 ETF (ASX: NDQ). It is home to some of the most powerful companies in the world. And with its units down materially from their highs due to recent volatility, now could be an opportune time to invest.
Alternatively, something like the iShares S&P 500 ETF (ASX: IVV) could work —offering exposure to the 500 largest listed companies on Wall Street.
Don't time the market
Waiting for the perfect time to invest in ASX shares is one of the biggest mistakes beginners make. The truth? Time in the market beats timing the market.
Even if the market dips after you invest — which it might — you are getting skin in the game. And over time, history shows that quality investments tend to recover and grow. The earlier you start, the more time you give your money to compound.
Add ASX shares consistently
Your first $1,000 isn't going to make you rich. But it certainly is a starting point. If you can keep adding to your investments regularly — say $250 a month in ASX shares — that's when things start to snowball. It is called dollar-cost averaging, and it is a great way to smooth out the bumps and build wealth over time.
Based on an average annual return of 10%, an investor starting with $1,000 and then adding $250 each month would see their investment grow to be worth over $50,000 in 10 years.
Foolish takeaway
If you're a beginner with $1,000 to invest in ASX shares, focus on what really matters: broad exposure and long-term thinking. An ASX ETF arguably gives you that in one neat package. It is simple, effective, and takes the pressure off having to be right about individual stocks.
The important thing isn't how much you start with — it is that you start.
