Do you want to become a millionaire before your parents? You can use ASX shares to do it.
Some younger people still have a long working career ahead of them. They may well be able to quickly accelerate their wealth towards their financial goals. Particularly because of the current difficult coronavirus circumstances.
Why younger people have an advantage with ASX shares
Older people are drawn towards safer assets. Cash, term deposits and property are big holdings of older Aussies. However, the Australian interest rate is now so low you won't get much of a return from fixed interest assets. Rents are falling across the country for property. Corelogic is starting to report that house prices are falling. Cash and property (including commercial) don't look great right now.
On the other hand, ASX shares are rising. There are plenty of businesses that may be able to adapt to the new way of doing things in the world. I've got my eyes on growth shares like Pushpay Holdings Ltd (ASX: PPH), Bubs Australia Ltd (ASX: BUB), MFF Capital Investments Ltd (ASX: MFF) and Magellan High Conviction Trust (ASX: MHH).
Young people still have many years of earning ahead of them to invest into growth assets like ASX shares. It's going to be those growing businesses like Xero Limited (ASX: XRO), Altium Limited (ASX: ALU) and City Chic Collective Ltd (ASX: CCX) which could keep taking market share away from competitors with their focused business plans.
If you can invest $1,500 a month into ASX shares then it would only take 19 years to reach $1 million if your money was growing at 10% per annum, which is the historical return of the Australian share market. Don't forget – superannuation counts towards building your wealth. Younger people have the opportunity to save hard whilst options to spend money are restricted. It's not easy to 'get ahead' but you need to do things differently to many people to reach a net worth of $1 million.
