So you got your hands on $100. Cool! Now, let’s start the fun part of having extra money – investing! Keep reading to learn how to start investing with $100 or less.
Instead of spending what’s left on random stuff, you’ve decided you want to use this $100 for something more meaningful. You want to invest it. There are lots of ways to invest small amounts of money, but not all opportunities are created equal.
Saving any amount of money isn’t easy and resisting the urge to spend that $100 is no small feat. Now it’s time to figure out what to do with it. Here are some of the best ways to invest your first $100.
Most people do not realize that there are a number of investments out there that you can get started with that do not require thousands of dollars. We are going to be covering a number of different ways you can start investing with as little as $100
PRO TIP: If you are really eager to start investing, one of our recommended choices is Robinhood. They have no minimum deposit and $0 commission. It’s a great choice for beginners and the app is very easy to use.
Deciding Where To Invest Your Money Doesn’t Have To Be Hard
The stock market isn’t the only way to invest. Here are 10 smart ways to invest your $100, including some less common ideas.
Open a Savings Account
Savings accounts are one of the most boring investments around, but they are SUPER safe. The idea isn’t to leave your money here for very long but to build up your savings until you can get into some higher-yielding investments. Some savings accounts with high returns are Discover, Capital One, American Express.
Invest your spare change
What if you don’t have any money, can you still start investing? The answer is a definitive yes. How is that even possible? Thanks to new apps like Stash or Acorns, you can invest your spare change. You won’t get rich quick doing this, and that’s not the point. The point is to start a habit that will grow as you make more money in the long run.
With Acorns, they round up any purchase to the nearest dollar amount and invest the difference. So, for example, let’s say you buy a loaf of bread for $3.49. Acorns rounds it up to $4 and takes the $.51 and invest it for you.
Stash works in a similar fashion; they just don’t round. With Stash, you open an account with $5 to start investing. With Stash, you get presented with a grouping of ETFs and some individual stocks, based on what would be suitable in light of your risk profile.
Invest in real estate
That’s right, you don’t have to be a millionaire to become a real estate tycoon. You can start investing in real estate with just $100.
If you want to invest in real estate while making a positive difference in the world, check out AHPFund. AHPFund purchases distressed mortgages and work with the homeowners to keep them in their homes – while targeting a 12% return for investors. The minimum investment is just $100.
Invest in Robo-Advisors
Betterment allows you to start investing with nothing. After answering a few questions, they set you up with a customized portfolio and manage it just as if you had a financial advisor. The best part is that Betterment is incredibly cheap. So, if you know you need to start saving for retirement and only have $100 to start, you have no excuse.
What if you’re more of a DIY investor – can you start investing with $100 or less? Yes, you can and for very cheap. You can invest with Ally Invest as they have no minimum balance requirement and charge an industry-low $4.95 per trade.
There are many options to invest with as little as $100. Find what fits your needs and run with it.
Invest in yourself
Why not invest your $100 in online courses that will look great on your resumé? You can learn new skills or sharpen the ones you already have. Either way, they’ll make you more marketable so you can land that dream job with a six-figure salary.