How to build wealth on the ASX with just $100 a week

You don't need big sums of money to build wealth on the Australian share market.

A laughing woman wearing a bright yellow suit, black glasses, and a black hat spins dollar bills out of her hands, reflecting dividend earnings.

Image source: Getty Images

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

You don't need a huge sums of money to start building wealth on the ASX.

In fact, with just $100 a week and a combination of patience and discipline, almost anyone can lay the foundations for long-term financial success.

Here's how it can be done — and why the earlier you start, the better.

Start with small, regular investments

The biggest myth in investing is that you need a lot of money to start.

But the truth is that consistency matters far more than size. Thanks to low-cost brokerage platforms and fractional investing, putting $100 a week to work on the ASX is easier than ever.

Over time, these regular contributions — often referred to as dollar-cost averaging — help smooth out market volatility, build a solid base of investments, and benefit from the power of compounding.

If you invest $100 every week (the equivalent of $433 a month) for 20 years and earn an average return of 10% per annum, you could grow your portfolio to almost $315,000! That's without needing to time the market or pick the next big winner.

Focus on quality, not hype

When building long-term wealth, it is best to focus on quality and not hype. Many of the ASX's most reliable compounders aren't the ones grabbing headlines.

Companies like CSL Ltd (ASX: CSL), Wesfarmers Ltd (ASX: WES), and Goodman Group (ASX: GMG) have delivered strong returns for years by doing one thing well — growing earnings consistently.

If you prefer a simpler approach, exchange-traded funds (ETFs) such as the Vanguard Australian Shares Index ETF (ASX: VAS) or iShares S&P 500 ETF (ASX: IVV) offer broad exposure to hundreds of companies in one trade.

The key is staying focused on quality. Avoid the temptation to chase hot tips, penny stocks, or speculative themes without substance.

Reinvest dividends

Reinvested dividends can quietly supercharge your returns over time. Many ASX shares — including Telstra Group Ltd (ASX: TLS) and Coles Group Ltd (ASX: COL) — pay reliable, fully franked dividends that add to your compounding power.

If you're still in the accumulation phase, reinvesting these dividends can accelerate your portfolio's growth. And if you eventually want to draw passive income, these payouts could provide a stable foundation.

Be patient

The most powerful force in investing isn't timing, stock-picking skill, or even luck. It is time. The earlier you start, the more compounding has a chance to do its work.

That's why starting with $100 a week — even if it doesn't feel like much — can be so effective. It gives your money time to grow, recover from setbacks, and compound year after year.

The best investors aren't necessarily the smartest — they are often just the most patient.

Foolish takeaway

If you're wondering how to build wealth on the ASX, the answer might be sitting in your weekly budget. By committing just $100 a week, focusing on quality, and staying the course, you can put yourself in a strong position for financial independence.

It won't happen overnight. But over time, the results can be significant.

Motley Fool contributor James Mickleboro has positions in CSL and Goodman Group. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended CSL, Goodman Group, Wesfarmers, and iShares S&P 500 ETF. The Motley Fool Australia has positions in and has recommended Coles Group and Telstra Group. The Motley Fool Australia has recommended CSL, Goodman Group, Wesfarmers, 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.

More on How to invest

A woman sits in a quiet home nook with her laptop computer and a notepad and pen on the table next to her as she smiles at information on the screen.
How to invest

How to build a $100,000 ASX share portfolio starting at zero

Want to build a big portfolio? Here's the easiest way to do it.

Read more »

A man holding a sign which says How do I start?, indicating a beginner investor on the ASX
How to invest

Start buying shares in December with a spare $500? Here's how!

The best time to start investing is right now.

Read more »

Suncorp share price Businessman cheering and smiling on smartphone
How to invest

How to invest your first $1,000 in the share market the smart way

My first investment would look something like this if I were starting again.

Read more »

Beautiful young couple enjoying in shopping, symbolising passive income.
How to invest

The smart way to make a $25,000 passive income from ASX shares

This could be the smart way to make your money work for you.

Read more »

Happy young couple saving money in piggy bank.
How to invest

$20,000 in savings? Here's how you can use that to target an $8,000 yearly second income

Having $20,000 saved is more powerful than most people realise. Not because $20,000 can produce an income today, but because…

Read more »

A smiling woman with a handful of $100 notes, indicating strong dividend payments
How to invest

How to turn $50 a week into a six-figure ASX share portfolio

Small investments could grow into big wealth with this strategy.

Read more »

Excited couple celebrating success while looking at smartphone.
How to invest

Why today's cheap ASX shares could double my money during the next bull market

These shares could be the ones to buy if you are looking for undervalued options.

Read more »

A businessman compares the growth trajectory of property versus shares.
How to invest

The 10-year wealth plan: how to turn small savings into life-changing results

Building wealth doesn't need to be hard. Here's a simple plan you can follow.

Read more »