How to Start Investing With $100 or Less

See how to start small and grow big!

Think you need a ton of money to start investing? Think again! With just $100 (or even less), you can kickstart your investment journey. Let’s break it down and show you how simple it can be.

Investing isn’t just for millionaires—it’s for everyone, including you! Thanks to technology and some creative financial tools, you can start investing with as little as $100.

There’s no need to wait for the perfect moment or a bigger paycheck. Whether you’re planning for retirement, saving for something fun, or just curious about growing your money, let’s dive into the options.

1. Micro-Investing platforms

Have you heard of apps like Acorns or Stash? These micro-investing platforms make it super easy to invest small amounts, even your spare change.

• How it works: link your bank account, and the app rounds up your purchases to the nearest dollar, investing the difference automatically.
• Why it’s great: no need to stress over picking stocks. The app invests your money into diversified portfolios designed for steady growth.
• Fees to watch: some apps charge a small monthly fee, so make sure it aligns with your budget.

2. Fractional shares

Ever dreamed of owning a piece of Amazon or Tesla but thought it’d cost you a fortune?

Fractional shares to the rescue! Brokerages like Robinhood, Fidelity, and Charles Schwab let you buy just a slice of those big-name companies.

• How it works: instead of buying a full share, you invest whatever amount you can afford, even if it’s just $10.
• Why it’s great: you get to own part of the companies you believe in without needing a huge budget.
• Key tip: do a little homework on the companies you’re interested in and spread your investments around.

3. Robo-Advisors

Robo-advisors might sound futuristic, but they’re here to help you invest smartly with minimal effort. Platforms like Betterment and Wealthfront are perfect if you’re new to investing and want a hands-off approach.

• How it works: answer a few questions about your goals and risk tolerance, and the robo-advisor creates a personalized investment plan just for you.
• Why it’s great: it’s like having a financial advisor in your pocket, but way more affordable.
• Fees to watch: expect to pay an annual fee of around 0.25%, which is pretty reasonable for what you get.

4. High-Yield savings and CDs

Not quite ready to jump into the stock market? That’s okay! High-yield savings accounts and certificates of deposit (CDs) are solid options to grow your money safely.

• How it works: deposit your cash into accounts offering above-average interest rates and watch it grow, slowly but surely.
• Why it’s great: there’s almost no risk, making it perfect for short-term goals.
• Pro tip: check out online banks for higher rates compared to traditional ones.

5. Peer-to-peer lending

Want to do something a little different? Peer-to-peer (P2P) lending platforms like LendingClub and Prosper let you lend money to individuals or small businesses, earning interest in return.

• How it works: you choose who to lend to based on their profile, and they pay you back with interest.
• Why it’s great: potentially higher returns than a savings account.
• Risks to consider: borrowers might default, so it’s smart to spread your money across multiple loans.

6. Invest in yourself

Here’s a thought: what if you used that $100 to learn something new? Whether it’s a course, a book, or a workshop, investing in yourself can pay off big time.

• Why it’s great: knowledge compounds over time, just like money.
• Pro tip: focus on skills that could help you earn more, like coding, marketing, or personal finance.

Key Takeaways

• Start small: $100 is enough to get going.
• Use tools like apps and robo-advisors to make it easy.
• Diversify your investments to reduce risks.
• Safe options like savings accounts are always good too.

Remember, starting small is still starting. That $100 might not seem like much, but over time, it can grow into something substantial. The key is to take that first step and keep going. You’ve got this!

Escrito por

Everaldo Santiago