If you've ever felt that investing is something only high earners or seasoned market veterans can do, you would be wrong.
You don't need a lump sum to build serious long-term wealth. You just need consistency. In fact, one of the simplest and most powerful strategies available to everyday Australians is investing a small amount every week.
So, what could $100 a week, barely the cost of a couple of dinners out, turn into over 20 years on the Australian share market? Let's find out.
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Investing small amounts
When you invest regularly, you take advantage of something called dollar-cost averaging. Instead of trying to pick the perfect buying moment (which even the pros struggle with), you gradually build your holdings over time, buying more when prices fall and less when prices rise.
Combine this with the fact that the share market has historically returned around 10% per annum on average, and suddenly even modest weekly contributions can snowball into something life-changing.
Where to invest
You want to think about businesses that have strong growth drivers and sustainable competitive advantages.
Take ARB Corporation Ltd (ASX: ARB), which is a global leader in 4WD accessories that has steadily expanded internationally. Or Breville Group Ltd (ASX: BRG), which is an appliance manufacturer that has been growing for decades. Investment bank Macquarie Group Ltd (ASX: MQG) could also be worth a look given its long track record of strong shareholder returns.
These aren't speculative micro-caps, they are established, profitable companies with clear runways for growth. And drip-feeding small weekly investments into quality businesses like these can quietly transform your financial future over time.
What $100 a week could become
Now for the big question. If you invested $100 every week and earned 10% per year on average, what would $100 a week turn into?
After 20 years, your weekly contributions into your portfolio could grow to around $315,000.
And remember, this doesn't require picking the perfect stocks, timing the market, or taking huge risks. It simply requires staying consistent, focusing on quality, and giving your investments time to work.
You could even opt for a broad-based index fund like the Vanguard Australian Shares Index ETF (ASX: VAS) for Australia or the iShares S&P 500 ETF (ASX: IVV) for the United States.
Foolish takeaway
$100 a week may not feel like much today. But when you combine patience, discipline and the long-term strength of the ASX, it becomes a powerful wealth-building engine.
The best part? You can start anytime. And the sooner you begin, the more time compounding has to quietly turn small weekly savings into something extraordinary.
