How to turn spare change into serious wealth on the ASX

Giving up your daily coffee to free up $50 a week could help your grow wealth.

Cheerful boyfriend showing mobile phone to girlfriend in dining room. They are spending leisure time together at home and planning their financial future.

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Key points

  • Starting with as little as $5, consistent investment in ASX shares or ETFs can compound into significant wealth over time, leveraging modern investing platforms.
  • Selecting diversified ETFs provides easy access to broad market exposure, including innovative sectors like robotics and AI, aiding in long-term wealth growth.
  • Reinvesting dividends accelerates the compounding effect, while a long-term, disciplined approach allows even small investments to become substantial over decades.

Most people think of investing as something you do with big sums of money — $10,000, $20,000, or more.

But the truth is, you don't need to be rich to get started.

Thanks to modern micro-investing apps and ASX exchange-traded funds (ETFs), even a few dollars a day can snowball into meaningful wealth over time.

Start small, stay consistent

The hardest part of investing is often just getting started. But with micro-investing platforms and low-cost brokerage, you can put as little as $5 into ASX shares or ETFs. By setting up an automatic weekly or monthly contribution, you will hardly even notice the money leaving your account — yet the impact over years and decades can be transformative.

For example, $50 a week at a 10% average annual return (not guaranteed, but in line with long-term sharemarket averages) compounds to approximately $160,000 in 20 years. Double that to $100 a week and you're looking at nearly $315,000.

Choose simple, diversified investments

To keep things easy, many beginners choose ETFs. Funds like the Vanguard Australian Shares Index ETF (ASX: VAS) provide instant exposure to the ASX 200, while the iShares S&P 500 ETF (ASX: IVV) gives access to the world's largest stocks like Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), and Nvidia (NASDAQ: NVDA).

For those interested in megatrends, the Betashares Global Robotics and Artificial Intelligence ETF (ASX: RBTZ) or Betashares India Quality ETF (ASX: IIND) add growth potential by focusing on future-facing industries and fast-growing economies.

Reinvest dividends

One of the simplest yet most effective complementary strategies is to reinvest dividends rather than taking them as cash.

This way, you're constantly buying more units, which then generate their own dividends. Over time, this compounding effect creates an accelerating snowball of wealth. And then eventually, once your portfolio grows substantially, you can take the dividends out as a source of passive income.

Think long term

The real secret to turning spare change into serious wealth isn't a hot stock tip or lucky timing — it is patience.

By starting early, staying consistent, and resisting the urge to sell when markets wobble, you give compounding the time it needs to do the heavy lifting.

Foolish takeaway

Don't underestimate the power of small beginnings.

Even a few dollars a day, invested wisely on the ASX, can grow into life-changing wealth over time. The trick is to start now, stay disciplined, and let the compounding magic work in your favour.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Apple, Microsoft, Nvidia, and iShares S&P 500 ETF. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has recommended Apple, Microsoft, Nvidia, 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.

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