If you've got $5,000 to spend, the world is your oyster. You could buy a new TV, a new iPhone or a not-so-new car.
But I think the best use of the money you have but don't really need is investing in ASX shares. ASX shares are one of the best pathways to long-term wealth available, so why not set yourself up for the future and invest the $5,000 today!
If you do want to tread that path, here are 5 ideas to get started:
Afterpay Ltd (ASX: APT)
Afterpay is one of the best-performing shares you can buy on the ASX. In just the last 2 months, Afterpay has gone from $8 a share to over $40. I would definitely call this company a trend-setter and it remains at the vanguard of the fast-growing buy now, pay later sector. You could do a lot worse than this growth story.
Xero Limited (ASX: XRO)
Xero has an equally successful story, becoming one of the most popular accounting software programs in the country and soon (it seems), the world. Xero has a highly lucrative Software-as-a-Service (SaaS) business model, which allows for exponential revenue growth if it can keep its subscriber growth at a healthy rate.
CSL Limited (ASX: CSL)
CSL is now the largest company on the ASX, and it hasn't claimed that crown by being a lousy ASX performer. CSL is a truly phenomenal global growth story. It only 'IPOed' for 77 cents back in 1994 (once you adjust for stock splits), so an investment then would have been a life-changing experience. Even though the company is now trading for over $300 a share, I still think this company has plenty of runway left and is also well on its way to becoming a formidable dividend payer.
Macquarie Group Ltd (ASX: MQG)
I'm not a big fan of investing in the ASX banks at the moment, but I do think Macquarie is a strong exception. It has very little exposure to 'retail banking' through mortgages and loans. Instead, Macquarie has built a successful asset management business and is also one of the best investment banks in the country. Thus, I think this company would make a great investment with current prices – they don't call Macquarie the 'millionaire factory' for nothing!
iShares S&P 500 ETF (ASX: IVV)
We'll finish with a simple choice – this exchange-traded fund (ETF). IVV tracks the largest 500 companies over in the US – the most popular index in the world. Over the past 10 years, an investment in this ETF would have returned around 15.54% per annum. You are getting top-notch US companies like Berkshire Hathaway, Alphabet, Apple and Microsoft, so need I say more. IVV is also one of the cheapest ETFs on the ASX, with a management fee of just 0.04%.
