I think it's very possible to build good wealth with small investments. You just have to utilise the power of compound interest.
If you think you need to invest hundreds of thousands of dollars to build good wealth then you'd be mistaken.
There are great calculators out there that help you calculate how much you can build your wealth in the coming years and decades.
According to Moneysmart, if you invest $500 every month for 20 years and the share market grows at 10% a year then you'd finish with $380,000. That's not millionaire status, but investing $6,000 a year is fairly achievable for most households. That's not increasing the monthly $500 investment at any point.
Imagine if you were 25 and had 40 years to compound your wealth to retirement instead. You'd end up with over $3.1 million.
What ASX shares would be helpful for building good wealth?
You could go for good exchange-traded funds (ETFs) that provide diversification and have cheap fees like BetaShares Australia 200 ETF (ASX: A200), iShares S&P 500 ETF (ASX:IVV) and iShares S&P Global 100 (ASX: IOO).
You could go for quality fund managers like Magellan Global Trust (ASX: MGG), WAM Global Limited (ASX: WGB) or Future Generation Investment Company Ltd (ASX: FGX).
Or to build your wealth you could go for some of the best individual shares out there like Brickworks Limited (ASX: BKW), Pushpay Holdings Ltd (ASX: PPH) or Bubs Australia Ltd (ASX: BUB).
