It wasn't all that long ago that the 'great Australian dream' was thought to be homeownership. But things have changed. More and more Australians are seeking to be financially free instead, and I think investing in ASX shares could see me living that dream.
The 'Australian dream' is changing…
More than half of Australians dream of financial independence and regular holidays, according to new research commissioned by Insignia Financial Ltd (ASX: IFL) and conducted by McCrindle.
In fact, when push comes to shove, 60% would rather pursue their dream life than own their dream home. And that figure is even higher among younger Aussies.
Insignia Financial CEO Renato Mota said "it's clear Australians have changed their priorities in life", continuing:
Australians are deeply aware of their financial wellbeing because it ultimately enables them to achieve the things that matter most to them, whether that be travel or spending time with loved ones.
As a zillennial myself (that is, a person on the cusp between millennials and gen Zs) I plan to improve my financial position by investing strategically in ASX shares.
Building wealth with ASX shares
Investing in ASX shares might sound daunting. Indeed, the words 'stock market' can incite visions of scrolling red and green ticker boards and chaotic trading floors.
But, at its simplest, investing in ASX shares is like buying a small portion of a business. If that business does well, your portion will likely increase in value.
Some ASX-listed businesses even provide their investors with a piece of their cash profits – known as dividends. Get enough of those, and they could help fund an exciting holiday or two.
Through capital gains and dividends, ASX shares can help build wealth. Over time, they even have the potential to provide financial freedom.
And despite there being plenty of jargon and complex concepts in the investing world, finding ASX shares able to build wealth over the long-term can be simple.
Finding ASX shares to invest in
Investing is an individual sport. The shares a person is comfortable owning will depend on their risk tolerance, the time they can spend researching, and their investing horizon.
What I think might be the simplest way to build wealth with ASX shares is to identify companies that will likely perform well no matter the economic environment.
For example, Bunnings, Kmart, and Officeworks will probably continue bringing in sales over the years to come, no matter what. Those three businesses are owned by conglomerate and ASX-listed conglomerate Wesfarmers Ltd (ASX: WES).
Other companies that could be a safe bet for beginners investors include supermarket giant Woolworths Group Ltd (ASX: WOW) or toll road operator Transurban Group (ASX: TCL).
Once I've identified a stock I like, I'd aim to buy it when it's trading at a good price.
If the idea of stock picking sounds exciting to you, but you're not sure where to start, take a look at The Motley Fool Australia's guide to choosing stocks.
But if all that sounds too complicated, investing in an exchange-traded fund (ETF) might be a better option.
They are essentially a pot of individual shares, listed on the ASX or overseas, wrapped up in a neat bow. Thus, they can make easy investing decisions and provide instant diversification.
