How to Start Investing with Only $100 (Even If You’re Completely New to It)
“I Used to Think Investing Was Only for the Rich. Until I Tried It with Just $100“
A few years ago, I was sitting at my kitchen table with my bank statement in front of me. I had $100 extra lying around, and I asked myself, how much can I really do with that? For as long as I can remember, I believed investing was something for the wealthy those who possessed thousands, or even millions, to invest in real estate, stocks, and so on.
But then I chose to shift that way of thinking. Rather than just letting that $100 just sit there making nothing, I invested. Skip ahead to today, and that little bit of money has increased substantially not because I was lucky, but because I learned how to make my money work for me.
If you think that investing is not for you, this guide is for you. I will guide you through the process of starting with only $100 even if you have nothing to start with.
Step 1: Change Your Mindset – Investing is for Everyone
One of the most popular myths about investing is that you must have tons of money to get started. The truth? The earlier you start, regardless of how little you have to invest, the better your chances.
Consider this: if you put $100 a month into an index fund that pays an average of 8% annually, after 20 years, you could have more than $58,902. That’s the magic of compound interest!
Even if you’re kicking off with just a single $100, it can be your first step towards financial freedom.
Step 2: Where to Put Your First $100
So, where should that $100 go? Here are four simple options:
- Invest in Fractional Shares (Own a Slice of Big Companies)
You don’t have to have a lot of money to grab a share of stocks such as Apple, Tesla, or Google. Most investment apps today already offer fractional shares, which allow you to invest in a part of a stock for just $1.
Best Platforms:
- Robinhood
- Webull
- Fidelity
- M1 Finance
- Invest in an S&P 500 ETF (A Low Risk, Long Term Investment)
If you’re looking for a “set-it-and-forget-it” option, an S&P 500 ETF is great. It tracks the performance of the 500 largest companies in the U.S. Historically, the S&P 500 has averaged growth of around 8-10% per year.
Recommended ETFs for Beginners:
- VOO (Vanguard S&P 500 ETF)
- SPY (SPDR S&P 500 ETF)
- Explore Cryptocurrency (But Be Careful!)
If you’re interested in crypto, you could spend $100 on buying Bitcoin or Ethereum. Just remember the crypto market is extremely volatile, so invest just what you’re willing to risk losing.
Best Crypto Apps:
- Coinbase
- Binance
- Kraken
- Dabble in Real Estate (Yes, Believe it or Not, for $100!)
Interestingly, you can invest in real estate with just $1 through websites such as Fundrise and Real Estate Investment Trusts (REITs).
Best Real Estate Investment Apps:
- Fundrise
- RealtyMogul
- Public REITs
Step 3: Avoid These Beginner Blunders
Investing is exciting, but it’s important to avoid novice mistakes that will cost you.
❌ Error #1: Chasing Hype & Trends
Most beginners are caught up in the game of buying “hot” stocks or coins based on social media hype. You are likely too late if a stock or coin is suddenly skyrocketing overnight.
❌ Blunder #2: Investing Funds You Can’t Handle to Lose
Don’t invest cash that you require for necessities such as rent, bills, or emergencies. Remember that investing is not gambling ensure that you have an emergency fund in place.
❌ Mistake #3: Not Thinking Long-Term
The secret to successful investing? Time in the market is more important than attempting to time the market. Focus on long-term returns rather than hoping for short-term profits.
Step 4: What to Do After Your First Investment
Investing is not something you do only once; it’s a practice you develop. Once you’ve begun, this is how to maintain the momentum:
✅ Automatically Invest Use apps such as Acorns or M1 Finance to invest loose change or small amounts every month.
✅ Reinvest Dividends – If you’re profitable, don’t withdraw the cash! Have your money grow and compound.
✅ Stay Educated – Read books like The Intelligent Investor or subscribe to finance-related YouTube channels.
Conclusion: Your $100 Is Only the Start
The biggest regret most investors have? Waiting too long to start.
With only $100, you can make a valuable move towards becoming wealthy. Investing is not reserved for the rich; it’s being smart about what you do have. Even the most profitable investors began in a small way.
So why wait? Invest your first today. Your future self will thank you!
???? Ready to invest? Comment below: What’s the first investment you can’t wait to make?
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