Starting your investing journey can feel daunting — especially if you're working with a modest amount of money.
But the good news is, with just $1,000, you can begin building wealth through the share market — and the ASX is a great place to start.
Here's how to put that $1,000 to work and start your investing journey the smart way.
Starting with ASX shares
It is always important to understand why you are investing.
That's because knowing your objective will help shape your strategy. For most people starting out, long-term growth is the name of the game — and that means focusing on quality and consistency over short-term wins.
Consider ETFs
If you're new to the market, picking individual stocks can feel overwhelming. That's where exchange traded funds (ETFs) come in. These investment vehicles let you buy a basket of shares in one go, giving you instant diversification.
For example, the Vanguard Australian Shares Index ETF (ASX: VAS) gives you exposure to the top 300 shares on the ASX, including household names like Commonwealth Bank of Australia (ASX: CBA) and BHP Group Ltd (ASX: BHP).
Whereas investors wanting international exposure could turn to the iShares S&P 500 ETF (ASX: IVV). It lets you invest in 500 of the largest companies in the US. This includes iconic companies like Apple (NASDAQ: AAPL), McDonald's (NYSE: MCD), Microsoft (NASDAQ: MSFT), Nike (NYSE: NKE), Starbucks (NASDAQ: SBUX), and Tesla (NASDAQ: TSLA).
Think long term
The most important part of investing with a small amount? Getting started and staying the course.
Investing $1,000 won't make you rich overnight — but it can build momentum. Over time, those initial dollars can grow through compounding returns, especially if you keep adding to your investments consistently.
Even adding $100 or $200 a month can snowball into significant wealth over time.
For example, starting with $1,000 and then adding $200 per month would turn into almost $43,000 in 10 years if you averaged a 10% per annum total return. Keep doing for another decade and your wealth would balloon to over $150,000.
And while 10% per annum returns are of course not guaranteed, they are in line with historical averages.
Foolish takeaway
Starting with $1,000 might not seem like much, but it's more than enough to begin your investing journey. Focus on diversification and quality, and remember: the goal isn't to time the market — it is time in the market that counts.
With patience and a long-term mindset, that first $1,000 could be the foundation of something much bigger.
