How to Invest $100 (8 Easy Ways to Get Started)
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Do you want to know how to invest $100 and grow it over time? Your investments have the potential to grow to six or even seven figures. You just have to start by choosing some of the investments I’ll discuss below.
How to Invest $100
Before you start investing, you need to know a bit about the different types of investing. You need to know what you’re getting into before putting your money on the table.
So, check out different types of investments and work to determine which are most suited to your risk tolerance and knowledge base. Some investments do better over the long term, even though they may seem volatile during the short term.
1. Investing in the Stock Market
It’s smart to check out the fine print when investing with small dollar amounts. Brokers who charge high fees can quickly eat up beginner investors’ profits. However, beginner investors who start investing with smaller dollar amounts can grow serious wealth.
You can build wealth through the stock market by purchasing individual stocks, index funds, etc., during the open trading times. Education is key before you start socking money into the market. Luckily, the Internet has great articles explaining the ins and outs of stock market investing.
You should be cautious, though, and only do your research using credible investment websites. One of my favorite investment companies is Ally Invest. I like them because they allow you to open an investing account with no account minimum.
2. Invest in Real Estate
Investing in real estate has long been touted as a smart move, and the wealthiest people frequently use real estate as an investment tool.
You might think investing in real estate isn’t an option when you only have $100 to invest. After all, you can’t buy a rental property or flip a house on a $100 budget. However, some companies cater to those wanting to invest smaller dollar amounts.
For example, Groundfloor offers fractional shares of short-term, high-yield investment properties to accredited and non-accredited investors. This can be done on its easy-to-use app.
The company offers venture loans to real estate investors, who use the money to quickly profit from real estate properties. To date, Groundfloor has achieved average returns of over 10% on its investments, which are typically held for 6 to 12 months. The minimum investment required by Groundfloor is just $10.
3. Buy Collectibles
Investing in collectibles was also once reserved for the wealthiest people. Today, celebrities and other rich people invest in art, cars, sports memorabilia, and more. Today, fractional share investing has changed all of that, and virtually anyone can now invest in collectibles.
Rally Rd is an app that offers fractional shares of collectibles to accredited and non-accredited investors. When I checked Rally Rd for this article, collectible offerings included a vintage copy of MacWorld signed by Steve Jobs and Steve Wozniak, a 1780 letter penned by George Washington, and more.
Depending on the collectible item, you can buy fractional shares for as little as $3.50 per share (with a $50 minimum investment).
Related article: 9 Practical Ways to Invest $1,000
4. Open a High-Yield Savings Account
A high-yield savings account is an option to make money if you are nervous about investing in the stock market. Most banks pay next to nothing for their savings or money market accounts.
However, CIT Bank typically offers a higher rate for its savings account than any local bank. You won’t get rich if you invest $100 or more only in high-yield savings accounts. But you will get paid much more than you would at most traditional banks.
Plus, if you are keeping your emergency fund in this type of account, you’ll easily be able to access your funds. Keeping an emergency fund in an account you can access without early penalty fees is preferable.
5. Invest $100 in Index Funds
An Index Fund is designed to mirror financial markets such as the S&P 500. When you invest in individual stock shares, each basket of shares is at risk if the company you’ve invested in goes under.
When you invest in an index fund, you spread the risk of investment loss among several companies instead of just one. Index fund investing was made popular by legendary investor Jack Bogle. Learn more about becoming a Boglehead.
You can buy these funds as exchange-traded funds or mutual funds. Before investing, check the expense ratio and compare exchange-traded funds or mutual funds.
Related article: 10 Best Ways to Invest $10,000
6. Investing in a Business
Many people choose to grow their money by investing in a business. Some invest in an existing business, while others start their own. Personally, I have found success owning my own business. Investing in a business can be costly, but even those with only $100 can make money.
My company costs very little up front to start. This is because the business involves using my skills. I could share my knowledge with people and help them get better rankings on their websites.
I only needed my knowledge and my laptop. Fortunately, you can start many businesses with only $100. Consider Chris Guillebeau, author of The $100 Startup: Reinvent the Way You Make a Living, Do What You Love and Create a New Future.
7. Investing in Yourself
Another way to consider growing your $100 into a lot more is to invest in yourself. By that, I mean invest in yourself to learn more about increasing your skills and, eventually, your net worth.
You can do this in several ways:
- Purchasing books to learn about investing or business ownership
- Taking online courses to learn a new skill
- Taking in-person classes to learn a new skill
- Joining an investment club or another networking group
The more you learn about money, whether earning, saving, or investing, the more tools you have to grow wealth. In fact, in his book Rich Habits, Thomas Corley shares that 88% of wealthy people read at least 30 minutes every day—and they’re not reading rag mags.
Instead, they’re reading books to educate themselves on improving their skills. So consider investing $100 in yourself and see where it leads you.
8. Pay Off Debt
This is one investment I can’t overstate enough. When my wife and I were first married, we had over $52,000 in consumer debt. It was like a weight hanging over our heads. Through hard work, we paid off that $52,000 in debt in just 18 months.
That one (albeit tedious) step has led to exponential wealth growth for us. Putting extra money (or $100 per month) toward credit card debt or another type of debt may not seem like it will do much good.
But I promise it will add up because you’ll pay less interest on the debt over time. And once you’re debt-free, you can save money and invest.
Tips for Investing $100
Contributing regularly to your investment portfolio is one key to building wealth successfully. Contributing is key, whether you are utilizing a traditional IRA or a different type of account.
It doesn’t matter if you only contribute a small amount or put money into retirement or savings accounts. Of course, contributing extra money each month helps. The more money you put into your investment accounts each month, the more compound interest can work to grow your wealth. This will help you work towards financial freedom.
But the most important thing is the habit of making monthly investments. Consider contributing to your investment accounts on a regular basis. Treat your investment contributions like bills.
Talk to your bank or investment firm about setting up an automatic transfer. They’ll transfer money each month from your bank account to your investment account. This will help you to make regular deposits on the same day every month.
Automatic investments will help you eliminate the need to think about investing each month. It just happens magically for you. But if you leave your investment deposits as a non-automated “choice,” you might not make the investments.
Are You Ready To Invest $100?
As you can see, there are low-risk ways to invest $100. You can put money into a high-yield savings account as a contribution to an emergency fund or pursue higher-risk options like investing in the stock market.
If you start investing with $100 today, your future self will thank you as the account grows, trying to reach the six and seven-digit figure range. In the process, you’ll create a more secure future for you and your loved ones.
Interesting fact: A penny doubled every day for 30 days becomes worth over $5,000,000! Start small, you’ve got this!
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