Getting started with investing can feel impossible when you don't have any savings.
However, it is worth remembering that legendary investor Warren Buffett started investing when he was just a schoolboy, putting any money he had left over from his paper round earnings into the share market.
And while the cost of living crisis is admittedly putting pressure on household budgets, it could pay (literally) to follow Buffett's lead by putting any available funds into ASX shares to grow your wealth.
Taking the Buffett approach with ASX shares
Firstly, it is worth setting realistic expectations when it comes to investing in ASX shares.
Unless you get extremely lucky and identify a future blue-chip giant while it is still a small cap, your investment journey is likely to be a long-term one.
But it certainly is worth sticking with it. That's because the longer you are in the market, the more you can benefit from compounding. Which is exactly what Buffett has done to grow his estimated fortune of US$114 billion.
This is why it is so important to put whatever you can spare into the share market if you want to grow your wealth.
For example, if you were able to cut your spending to allow you to invest $500 this month, that modest sum could grow many times over in the share market in the future.
Compounding your way to wealth
Over the last 30 years, ASX shares have generated an average 9.6% per annum total return for investors. That would have turned a $500 investment into almost $8,000.
And that's just once! Do that consistently and you could have a small fortune on your hands in three decades.
For instance, $500 invested monthly into a diverse group of quality ASX shares and earning the same return would be nearing the $1 million mark after three decades. And if your circumstances change in the future and you find yourself with more disposable income, you could potentially boost your future wealth by making higher monthly contributions.
It is worth noting that while past returns are not a guarantee of future returns, a 9.6% return is largely in line with historic averages on Wall Street. So, it is reasonable to target such a return in the future.
Overall, if you have a long-term plan, follow Buffett's lead, and stick with it through thick and thin, you have a good chance of growing your wealth materially even if you have no savings today.
