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).
There are some investments that give you exposure to the best businesses in the world like this top share idea.
NEW! 5 Cheap Stocks With Massive Upside Potential
Our experts at The Motley Fool have just released a FREE report detailing 5 shares you can buy now to take advantage of the much cheaper share prices on offer.
One is a diversified conglomerate trading 40% off it’s all time high, all while offering a fully franked dividend yield of over 3%…
Another is a former stock market darling that is one of Australia’s most popular and iconic businesses. Trading at a significant discount to its 52-week high, not only does this stock offer massive upside potential, but it also trades on an attractive fully franked dividend yield of almost 4%.
Plus, this free report highlights 3 more cheap bets that could position you to profit in 2020 and beyond.
Simply click here to scoop up your FREE copy and discover the names of all 5 cheap shares.
But you will have to hurry because the cheap share prices on offer today might not last for long.
Returns as of 7/4/2020
More reading
- Revealed: 5 dividend shares for reliable income
- Why high yield dividend shares can be detrimental to your wealth
- Is it time to buy ASX small caps for your portfolio?
- The Pushpay share price is up 70% in 2020: Why I would still invest
- Is it time to invest in shares or wait on the sidelines?
Motley Fool contributor Tristan Harrison owns shares of FUTURE GEN FPO, MAGLOBTRST UNITS, and WAMGLOBAL FPO. The Motley Fool Australia owns shares of and has recommended Brickworks, BUBS AUST FPO, and PUSHPAY FPO NZX. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
The post How to build good wealth with small investments appeared first on Motley Fool Australia.
from Motley Fool Australia https://ift.tt/2y14LVa
Leave a Reply