6 Easy Ways to Invest $100

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You might think that investing with smaller amounts of cash is pointless. However, the truth is that even if you start investing with only $100 you can build wealth.

Your investments still have the potential to grow to six or seven figures.

I remember reading a story one time about a couple in their sixties who were millionaires. When asked about how they got to millionaire status, they had one simple piece of advice.

They said, “We started by saving only ten dollars a week. We never dreamed our savings would grow to this magnitude”.

Are you feeling like it’s useless to start saving and investing because you have very little money to begin with?

If so, don’t give up just yet. No matter how much money you have to start with, you can build an investment nest egg.

And you can build one that’s big enough to fund your financial dreams. You just have to start by choosing some of the investments we’ll talk about 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 you put your money down on the table.

So check out different types of investments. Work to determine which types of investments are most suited to your risk tolerance and your knowledge base.

Some investments do better over the long term even though they may seem volatile during the short term.

Diversifying your investment choices will help protect you from market downturns. It will also help protect your money from economic ups and downs, whether personal or global.

Now we’ll talk a little bit about a few different types of investments.

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 eat up the profits of beginner investors real fast.

However, when done right, beginner investors who start investing with smaller dollar amounts can grow some serious wealth.

You can build wealth through the stock market by purchasing stock funds, index funds, etc. during the open trading times.

Education is key before you start socking money into the market. Luckily, the Internet is filled with great articles explaining the ins and outs of stock market investing. You be cautious though and only do your research using credible investment websites.

Also, there are great books on investing by experts such as John C. Bogle and Warren Buffett. Read books and articles by investing experts. This way you can begin to understand how to make money through the stock market.

Beware of get-rich-quick schemes and other promoted methods that promise big profits overnight. Smart stock market investing involves a “slow and steady wins the race” mentality.

And it also involves sticking with your investment through the ups and downs of the market. In addition, beginner investors will want to choose a brokerage account that they can manage themselves online.

This is especially true if you’re starting with a smaller amount of cash. These types of brokerages charge little or no fees. So this way you can be sure that as much of your money as possible is used for growing wealth.

Here are some options for stock investment accounts for beginner investors.

Ally Invest

One of my favorite investment companies is Ally Invest. I like them because they allow you to begin investing with no account minimum. Also, stock and EFT trades are $0 each and you can open an account with as little as $100.

Ally Invest is considered a “self-directed” investment firm, which means they don’t provide investment advice.

Instead, they provide custom charts and other investing tools to help you analyze trades and performance. This way you can learn to make your own educated choices about what to invest in.

With Ally Invest, you can access your investment account via multiple types of devices. This allows for easy and convenient investing. In addition, they also keep you aware of the latest investing information. They do this with live news streaming information.

Betterment

Betterment is another company that offers stock investment accounts. One of the cool things about Betterment is that they charge you zero for transaction fees and trade fees.

Since they will actually give you investment advice, they’re a little different than Ally Invest. They base their advice on your risk tolerance and how long you have to invest.

Betterment charges an annual fee, but it’s super affordable (0.25% on accounts with balances below $10,000). This is a benefit for clients who make a recurring account deposit each month of at least $100.

Each of these companies offer affordable fees and commissions for those just getting started in investing.

2. Open a Savings Account

Online savings accounts are an option to make money if you are nervous about investing in the stock market. Most banks pay next to nothing.

However, CIT Bank typically offers a higher rate you will not find at any local bank.

You won’t get rich by investing only in high-yield savings accounts. But you will get paid much more than you would at most traditional banks.

3. Peer-to-Peer Lending

Another less traditional investing option is peer-to-peer lending (often called P2P lending). Peer-to-peer lending companies such as Lending Club and others like it work differently than banks.

With P2P companies, investors choose to lend money to those seeking personal loans.

Loan applications get analyzed and approved by the peer-to-peer lending staff. Then those loans are offered to investors who can contribute all or a portion of the loan amount to the applicant.

Detailed information about the loan applicant (such as credit score and payment history) gets shared with potential investors.

When investors open a Lending Club account, money is withdrawn for loans as the investor chooses. They lend money to borrowers after reviewing the borrower’s credit and other facts.

When a borrower makes a loan payment, you (the investor) get paid back – with interest.

It’s important to be aware of the fact that you can lose your cash in a peer-to-peer lending investment. If a customer you choose to loan money to decides to stop making payments, you’ll lose your investment.

However, many people choose to invest in peer-to-peer lending and are happy with the results. Proceed with caution if you choose this route.

No matter which of these investing routes you choose, you can start earning money on your cash. But only if you’re willing to take the plunge and open an account.

Luckily, many of these businesses will let you invest even if your account only has $100 in it.

4. Investing in a Business

Many people choose to grow their money by investing in a business of some sort. Some people choose to invest in an existing business, while others choose to start their own.

Personally, I have found success with owning my own business.

Investing in a business can be costly, but even those with only $100 to invest can make money with their investment. In the case of my company, it cost very little up front to start.

This is because the business involved using my skills. I could share my knowledge with people and help them get better rankings with their websites. And I only needed my knowledge and my laptop.

Fortunately, there are many business startups you can do 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. 

He wrote a book sharing what he learned from interviewing over 1500 business owners. And each business owner started their businesses with a smaller amount of capital.

In many cases, the successful business owners that Chris interviewed spent no more than $100 on their startups. And his interviewees weren’t all people with special skills.

They were ordinary people like you and me. As Chris states in his book, they simply “discovered aspects of their personal passions that could be monetized.”

You never know; maybe you’re one of those people. You might be able to turn doing what you know and love into a business that grows into unimaginable wealth.

I’m not saying that this will happen without a lot of hard work. Growing a business always involves hard work.

However, if you are willing to put in the time, you might be able to grow a successful business even without having to put down a lot of cash up front.

5. 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 how to grow your skills, and eventually your net worth.

You can do this in a number of 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 that aligns with your interests

The more you learn about money, whether earning, saving or investing, the more tools you have to grow wealth.

In fact, in Thomas Corley’s book, Rich Habits, he 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 that will educate them on improving their skills. So consider investing your $100 in yourself and see where it leads you.

6. Pay Off Debt

This is one investment I can’t overstate enough. When my wife and I were first married, we were sitting with over $52,000 in consumer debt. It was like a weight hanging over our heads.

Through a lot of 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 an extra $100 (or $100 per month) toward debt may not seem like it will do much good.

But I promise you that it will add up because you’ll be paying less interest on the debt over time. And once you’re debt free, you’ll have more money to save and invest.

The Importance of Contributing Regularly

Contributing regularly to your investments is definitely one of the keys to successfully building wealth. And it doesn’t matter if you’re only contributing a small amount. Of course, contributing more 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.

But the habit of making monthly investments is the most important thing. Consider making a habit of contributing to your investment accounts on a regular basis. Do this by treating them like a bill.

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.

Instead, you might find yourself making excuses for why you can’t contribute. Bills will come due, as will the chance to spend the money on other things.

However, if you choose to treat your investment account like a bill, you’ll “set it and forget it.” When you automate savings and investments, you can train your mind to forget the money ever existed.

So you’ll probably find your investment growing at a more rapid pace than you had imagined it would.

Summary

If you being investing 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.

Author

Comments

  1. I’m a big fan of buying the S&P 500 through Vanguard. I love passive index funds and think it’s somewhat of a fool’s game to try and beat the market. Why not spend your free time doing things that you actually enjoy instead of the roller coaster of picking and choosing winners and losers in the stock market. But that may just be me. 🙂

    • I am a fan of the S&P 500 as well. I have had a brokerage account with Schwab for years and they have a no fee fund that has a super low expense ratio. However, I do invest in stocks through Motif as well. They have some high dividend yielding funds that have far surpassed the S&P. 🙂

  2. This is crazy. I have a VERY similar post running on Monday on this topic. These are great tips. I tell people all the time they can do quite a number of things with such a small amount. The key is just to start and keep going as it’ll grow to something substantial over time.

    • That is awesome! You know what they say, great minds think alike. I look forward to checking out your article!

      • I’m looking to invest for the first time. I have $100 plus that I would like to invest. Could you please give me some advice on where to start? I thank you very much.

        • Hi Tony,
          I’m happy to hear that you’re ready to start investing. Any of the ideas in this post should help. 🙂

  3. Thanks to this website I was able to payoff $12,000 of my credit card debt this month using the debt snowball form. Thank you, thank you, thank you, Deacon , for that piece of form. Now I don’t have credit card debt I am now able to put money in my Roth IRA account, invest some money in stocks, and save some for the rainy days.

    • That is awesome. Way to go, Angel!

  4. I’m looking to make an investment and want to learn more. I am a beginner and would like more information.

    • Hi Misty,

      We have a post on this site about how beginners can invest. Check it out. Also, you can invest through a 401K if that option is available to you through your employment. Or, invest through Stockpile, Acorns, or Betterment. Good luck!

  5. Hi,
    I’m so anti-investments, but I would love to be converted. It’s statements like the above, ‘invest $100 at 10% interest”. If there were such a thing (available to the public), everyone would be wealthy. It’s misleading. It’s just simply not there in 2017.

    • Well, there are several investments that have had a 10% return. Your best bet would be to go to Morningstar and search through the index funds and REITs with a minimum return of 10% over the past 10 years. Primarily you will find real estate and equities can return this type of investment. As always, there is a risk to investing and no return is guaranteed.

  6. I highly recommend index funds. It was the first investment my dad made for me in the 90’s. Today they are my primary investment option. They have really good historical performances, low fund expense fees, and built in diversification.

  7. You could also work with acorns. You start with $5 that you get right back because you signed up. They let you round up your change and invest it.

    • Yes! Acorns is a good way for beginners to get started.

  8. Hello,

    This is such an amazing post. I like this, but I want to ask you a question. We know $100 buys stocks, but in their $100 stocks, is tax included in the $100? I want to know how to invest in the stock market with 100 dollars.

    • If you receive a dividend on your stock you may have to pay taxes on it. Also, if you sell it for a profit, you’ll have to pay capital gains taxes.

  9. You can save $400,000 in 50 years? Many people in their mid-forties will be in their 90’s! What should you do if you started late? Should you save $1,000 – $2,000 a month for 25 yrs? Not everyone is in their 20’s.

    • You’re right, of course. Not everyone starts in their 20’s. But the point is to start. Even if you start later in life you’re better off than if you had saved nothing. We have posts that can help you get started. Check them out.
      I hope they help or inspire you.

  10. How do I start to invest? I’m in Ghana, West Africa, but I’m touched by your investment insights.

    • You could check out the links in this post to see if they would work for you. If you check their policies, terms and conditions, you might find out if it will work in your country. If that doesn’t tell you, try contacting them directly and asking. Otherwise, you might have to do a little more research to find investments you can try in your area. If you do not have a lot of money, you might start small to test the waters. As your investments grow you can continue to reinvest that money to grow it further. I with you luck!

  11. I just recently joined and invested with Acorns with a $5 startup and recurring $25 monthly payments. I’ve had several friends that joined also, which adds $5 for each person who joins with Acorns that I also get credit for. Acorns makes it easy for me, and their articles are really informative. I’m 57, so talk about being late at the dinner table! ???? LOL. But, I do have my profit sharing from 15 years and counting. It really is true to invest in yourself and have a spa day every once in awhile. I love this article…

    • That’s great, April! Even though you started investing late, you’re still better off than not investing at all! Every little bit helps!

  12. I’m looking to invest through Robinhood. What are your thoughts on this company? Thanks in advance.

    • It is mentioned in other posts on our site, including one titled, “13 Great Ways to Invest Small Amounts of Money”, as well as others. It could be the start to a great nest egg in the future. However, keep in mind, I am not advising you to invest in it, just mentioning is as an option. Good luck! 🙂

  13. Hi, I ive in the UK. Are there any companies similar to Acorns here?

    • I think there may be a few. Check out Moneybox, Monzo, Chip, and Tandem to name a few. I do not know the reputation of these companies, however. Be sure to check them out fully as well as any others you find before using them. 🙂

  14. Dear all,

    Is it possible to speak with the website owner, nothing negative just had a question?

    With thanks,

    Leo Jones

    • Hey Leo, if you have a question, feel free to drop it here in the comments or use our contact page!

  15. Something I started in my 20s and when teaching my kids about investing is buying individual stocks through dividend reinvestment plans (DRIPs) and direct share purchase plans (DSPs). Most companies that offer these plans will direct you to them from the investor section of their websites. I matched my daughters’ contributions with my “Daddy401k” match. The took these stocks with them when the grew up and used them to start their first Roth IRAs.

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