Starting from scratch with ASX shares can be intimidating. But it needn't be.
Countless investors across the country have generated significant wealth by putting money into the share market and there's nothing to stop you from doing the same.
I'm going to show you in three steps how you could go from zero to $200,000 in under 10 years by investing in ASX shares.
Step one: Make your plan
The first step is coming up with a plan of action. If we want to get to $200,000 in 10 years, we need to know how that could be achievable.
In this scenario, we would need to find a way to save $1,200 from our wage each month and then put that into ASX shares.
If we do this and earn an annual total return of 9%, which is not guaranteed but lower than the 30-year average, our portfolio would grow to be worth $200,000 in just over 9 years.
Step two: Buy ASX shares
The next step involves finding the ASX shares to buy each.
I would look for a diverse group of high-quality ASX shares that have positive long-term growth potential, strong business models, and competitive advantages.
Companies such as CSL Limited (ASX: CSL), Goodman Group (ASX: GMG), and Xero Limited (ASX: XRO) tick a lot of these boxes.
Step three: Discipline
The final step is staying disciplined. It is very easy to come up with an investment plan, but sticking to it is the hard part.
I would take inspiration from investors like Warren Buffett that invest through thick and thin and leverage the full benefits of compounding. And if you look at the Oracle of Omaha's investment track record and net worth, clearly it pays to do so.
All in all, I believe if you follow these steps then you will be well-placed to build a $200,000 ASX share investment portfolio by 2033.
