Becoming a millionaire might sound like a dream reserved for CEOs, crypto speculators, or those lucky enough to win the lottery.
But the truth is, it is more achievable than most people realise — and you don't need to take wild risks or hit the Powerball to do it.
In fact, many Australians could build a seven-figure portfolio simply by investing in high-quality ASX shares, staying consistent, and letting time and compounding do their thing.
What's the secret?
It isn't actually a secret — it is discipline and time. If you regularly invest into strong ASX shares (or even AX ETFs that track the broader market) and for a long enough time, compounding will quietly work its magic.
The historical average return for the Australian share market is around 10% per annum. It's not guaranteed to do this again in the future, and there will be plenty of ups and downs along the way — but I think that is a fair return for investors to target. The key is sticking with it through the noise.
Let's crunch the numbers
Let's say you commit to investing what you can, whenever you can.
Maybe that's $500 a month. Maybe it's $1,000 a month. Here's how those numbers play out over time, assuming a 10% annual return, and starting from zero:
- $500 per month for 30 years = $1.05 million
- $1,000 per month for 23 years = $1 million
That's assuming you don't increase your monthly contributions as your earning power increases. It is just the power of investing consistently and letting compound growth take over.
Even smaller amounts can add up to serious money — especially if you start early and keep going. Miss a few months? No problem. The most important thing is simply to start and stick with it.
Which ASX shares should I invest in?
You don't need to find the next big thing. In fact, you probably shouldn't try. Instead, focus on strong, established ASX shares — businesses with competitive advantages, healthy balance sheets, and a history of compounding earnings.
Or, if you want to keep things even simpler, consider a low-cost ASX ETF that tracks the broader market. This way, you can still benefit from the long-term growth of top companies without needing to pick individual winners.
Foolish takeaway
Becoming a millionaire isn't about luck. It's about using the tools available to you — time, consistency, and ASX shares — and putting them to work for long enough.
You don't need to be perfect. You don't need to start with thousands. You just need to start.
Because when it comes to building wealth, the earlier you begin, the more powerful your results will be.
