Having cash in the bank isn't going to help you get rich with Australia's official interest rate now under 1% and most bank accounts offering interest rates under 2%. I think the only option is ASX shares.
If you left $1,000 in a bank account and it earned 2% a year forever it would take 35 years to double to $2,000.
That's no good for building wealth.
I can tell you that the Australian share market, being ASX shares, has delivered an average return per annum of around 10% over the decades. Those returns don't even include the excellent franking credits which ensures Australian investors aren't doubled taxed.
If your $1,000 grows at 10% per annum it will double in less than eight years.
To achieve that 10% return you don't need to pick shares yourself necessarily. Just being invested in a broad, diversified ASX exchange-traded fund (ETF) like BetaShares Australia 200 ETF (ASX: A200) and Vanguard Australian Share ETF (ASX: VAS) means you will essentially get the average Australian share market return. You could also go with a high-performing fund manager like WAM Microcap Limited (ASX: WMI).
There have been lots of shares that have delivered much better returns than 10% per annum over the past five years. For example, the CSL Limited (ASX: CSL) share price is up 222%, Altium Limited (ASX: ALU) is up 984%, REA Group Limited (ASX: REA) is up 150%, Pro Medicus Limited (ASX: PME) is up 2,010% and Xero Limited (ASX: XRO) is up 449%.
Your money can double or more in a relatively short period of time if you choose the right growth shares.
I think one of the shares most likely to deliver excellent returns over the next few years is Pushpay Holdings Ltd (ASX: PPH) because of its growing profit margins, expanding client base and new church management system acquisition for synergies.
