What do you want to achieve in 2017?
As we near the end of 2016, many individuals will be starting to think about what they want to do, or do better, over the next 12 months.
Hopefully, many of those individuals will pay consideration to their finances. For some, that could mean paying off their car or reducing their debt. For others, it could be more related to investing and building long-term wealth.
Investing in shares has historically been one of the greatest ways to grow wealth. Sure, it does carry greater risks than, say, putting your cash in the bank, but in the long-run, holding high-quality businesses (bought at reasonable prices) can grow your wealth significantly.
Unfortunately, this is something that many individuals don't do. Some think it is too difficult, while others assume it requires too much capital outlay they simply can't afford.
Neither of those concerns necessarily need be true.
Investing doesn't need to be complex…
In terms of being too difficult, there are countless ways you can learn about shares and investing. By allocating some time to understanding the market and its constituents (consider following fool.com.au for regular updates), you can begin to understand what kind of temperament investing in the share market requires, and whether it is for you. Opening a brokerage account would be your next step.
Nor does it need to be expensive
In regards to the idea that investing is too expensive, investors are required to purchase a minimum of $500 of each new company they buy. That much money might be too much for some people to come up with at the click of a finger, but by making a regular contribution most individuals will be able to hit that target fairly quickly.
For instance, you may only be able to set aside at most $50 a week. Even that amount would get you to $500 in 10 weeks, with a total of $2,600 allocated to shares over the course of a year. Clearly, the bigger allocation you make, the faster you can build your portfolio.
What to buy…
What you buy really depends on what kind of investor you are. Some younger individuals who have the capacity to take on greater risk may look to invest in a business with greater growth potential, such as Blackmores Limited (ASX: BKL) or Virtus Health Ltd (ASX: VRT).
Others who are less inclined to take on too much risk may prefer a blue-chip business such as CSL Limited (ASX: CSL). CSL, a biopharmaceutical business, has a market capitalisation (that is, the value at which the market values the business) of more than $45 billion, making it one of Australia's biggest corporations.
Your New Year's Resolution
Investing doesn't have to be too difficult. Make it your New Year's resolution in 2017 to focus on building your long-term wealth by making regular contributions to your brokerage account and learning about the businesses you could part own.
