Imagine a situation where you’ve received an allowance of a $100 from your parents, or a paycheck from work and you’ve paid up your bills, your credit card debts, stocked up on food, and still end up having an extra $100 to spare at the end of the month!
Instead of spending it on something random, you can either save it or invest it into something meaningful, so that the money works for you.
There are lots of ways to invest small amounts of money, but not all opportunities are created equal.
Here are some of the best ways to invest your first $100.
10+ ways to start investing with $100
1. Investing with Apps
Investing can be intimidating in the best of times, and this isn’t the best of times.
Of course, you’ve probably heard that the best time to buy is when everybody else is selling. But maybe you’re not sure what to do with that information or feel like you don’t have enough money to get started investing.
That’s where investment apps come in. You can learn the ropes without the trouble of dealing with a financial adviser or the difficulty of finding trustworthy sources on the internet. In 10 minutes
Even if Apps make it easy for you to invest, you need to understand some basics about investing.
- Only invest what you can afford to lose. The value of most investments go up and down every day, so don’t make the mistake of investing money that you need for paying your bills.also this is why you need to think of investing long term, as said below.
- Invest for the long term (3+ years, minimum). The daily fluctuations of the market can take an emotional toll on anyone who has money riding on it, which is why it’s important to tune out the noise. Over the long term, the stock market tends to go up. In the short term, it’s anybody’s guess as to what it will do.
- Make a habit of regularly depositing and investing. Everything comes back to your habits. Your first $100 might not make a huge difference to your long term returns, but if you deposit $100 a month for a year, you now have $1,200 +/- your investment performance. Most apps allow you to set up automatic recurring deposits; take advantage of it. this method is also called a systematic investment plan
Here are 3 of the Best Investment Apps you could start with, and the strong points for each.
1. M1 Finance: Flexibility without fees
- M1 Finance allows you to build a flexible, custom portfolio of individual stocks and funds or choose from dozens of premixed options for free.
- I also has a paid option that lets you pick the time of day to invest
- it’s also suitable for beginners who don’t want a lot of hand-holding.
- it also lets you automate your contributions and supports fractional share investing, which is investing in expensive stocks without buying full shares
- It doesn’t charge any commissions or the management fees that are common elsewhere, but the app can charge a $20 inactivity fee after 90 days for low balances
- M1 Finance has a minimum account balance of $100, or $500 for retirement accounts
2. Robinhood: No minimum simplicity
- Robinhood is an easy place to get started investing because it has no minimum balance.
- It has a simple-to-understand interface.
- You can invest in fractional shares.
- It doesn’t charge commissions or fees.
- It also allows you to invest in cryptocurrencies like Bitcoin, in addition to individual stocks and ETFs (exchange-traded funds, which are simply diversified portfolios of stocks, bonds or a mix of both).
- The company also offers a premium subscription called Robinhood Gold for $5 a month after a 30-day free trial.
- Gold offers access to investment research and data and margin trading, which involves borrowing (with interest) from Robinhood to invest.
3. Acorns: Beginner automated investing
- There is no minimum investment.
- Acorns charges a flat fee of $1 to $3 per month depending on the features you want.
- College students can get the $1 tier for free
- The higher tiers include IRA recommendations,
- the ability to set up recurring retirement contributions
- help with rolling over an IRA or 401(k) and even a checking account with no minimum balance, ATM fees or overdraft fees.
- Acorns is meant specifically for those who want to get started, even though they may not have a lot to invest at first
Its phone app is designed to round up the price of your everyday purchases to the nearest dollar then take that change and automatically invest it in ETFs. It does this automatically after you link it to your credit card or checking account. Example: You buy a bag of groceries for $10.45 and pay for it with your linked credit card. The price charged to the card is rounded up to $11, and then 55 cents is invested for you.
$0 per trade
$1-3 per month
$0 per trade
|Designed for DIY investors||Beginner-friendly||Commission free trading|
|Easy-to-use mobile app||Completely automated||Automated re-balancing|
|No account minimum||No account minimum||$100 account minimum|
Get 1 free stock
$10 signup bonus
No signup bonus
2. Buy $100 worth of non-fiction books
Books offer some of the highest return on investment (ROI) out of almost anything you can buy. Exposure to new ideas can change your life.
Take autobiographies written by entrepreneurs, for example:
A successful entrepreneur that has already built a thriving business, that has already taken their own lumps on the way to the top, has a perspective that most people do not have. And when someone like that decides to sit down and share their story and condense their knowledge into one book that you can buy for less than $20, you better take advantage of that opportunity.
Even if one point that you’ve taken from the book changes your life, then that $20 is well worth it!
But we do understand
it feels like books have taken the backseat in most peoples’ lives. Attention spans are getting shorter and shorter and many people simply have no interest in reading something longer than a Facebook status or a tweet anymore (and even this blog post is stretching it).
If you want to break away from the majority, pick up a book or listen to audiobooks.
Here are some books you can read under $100
$100 Business/Entrepreneurship Bundle
- Onward — by Howard Schultz (Starbucks CEO)
- 10X Rule — by Grant Cardone
- Shoe Dog — by Phil Knight (Started Nike)
- Elon Musk — by Ashlee Vance
- Radical Candor — by Kim Scott
- Hooked — by Nir Ehal
$100 Personal Finance Bundle
- I Will Teach You to Be Rich — by Ramit Sethi
- You Need a Budget — by Jesse Mecham
- The Intelligent Investor — by Benjamin Graham
- Get Money — by Kristin Wong
- Broke Millennial — by Erin Lowry
3. Invest $100 in an online course
With new technology emerging at breakneck speeds, there’s a palpable pressure to continuously upskill.
Whether you want that job promotion or to sidestep into a new field, you’ll need to commit to learning new skills.
However, learning new skills can be both time-consuming and challenging. In fact, according to Josh Kaufman, international bestselling author of The Personal MBA, it takes 20 hours to go from knowing nothing about a particular subject to being pretty good at it.
Blog posts and podcasts are great starting points for exploring a particular topic. But online courses will provide you with the time and space you need to go deep and truly master a new skill. Plus, most courses are made up of on-demand videos and exercises that you can progress through at your own pace.
If you are unsure where to start! i would recommend starting with Masterclass! its the most bang for your buck. my favorite class is by Gordon Ramsay teaching basic culinary skills in a beautiful way.
MasterClass has dozens of courses from world renowned experts in a variety of specialties. The video production quality of the courses is impressive; you won’t be bored in these classes.
Learn from the best in the business, you can check out the trailer above.
Sign up here and get the first 24 hours for free : https://mstr.cl/2yD6qk4
Here’s a video about entrepreneurship by Sara Blakely.
4. Open an IRA
Saving for retirement is an important part of life. The biggest mistake that most people make when it comes to saving for retirement is not starting sooner. It’s normal to want to wait until you are “better off” before you start putting money away for retirement, but it’s up to you to fight that urge to wait and instead just start saving now.
An individual retirement account (IRA) allows you to save money for retirement in a tax-advantaged way.
An IRA is an account set up at a financial institution that allows an individual to save for retirement with tax-free growth or on a tax-deferred basis,
Opening an IRA is simple, and most brokerages allow new account holders to start with much less than $100.
$100 invested today can be worth $123,637 in 30 years, Assuming a starting balance of $100 and monthly contributions of $100, earning a 7.0% annual return over 30 years.
To Know how to become a millionaire by the time you retire, please watch the video below, it will make sense.
5. Build up your emergency cash reserves
If you are one of the 74% of Americans living paycheck to paycheck, building an emergency stockpile of cash should be a top priority. Unexpected things happen all the time, and even a small hiccup can throw your budget into a nosedive if you don’t have an emergency fund.
Having an emergency fund with 3-6 months of living expenses in it is a good goal to have, but don’t let that stop you from starting small.
When something does inevitably come up that you didn’t expect, having an extra cash buffer is much better than relying on credit cards and carrying a balance.
Emergency funds help make some situations less stressful. Some examples:
- A global pandemic
- A sudden job loss
- Car repairs
- Vet bills
- An unexpected tax bill
- Travel expenses for a funeral
- Emergency home repairs
6. Start a business
You don’t necessarily need a college degree, a bunch of money in the bank or even business experience to start something
The price of entry has been lowered immensely because of the internet.
The one drawback to the price of entry being lower today than ever before is that the level of competition is at an all time high. Anyone can start, which means you are competing with a lot of people. Don’t let that deter you. Let it motivate you.
Here are some businesses you can start with less than $100:
- Blog (like Patience Magazine)
- Virtual assistant
- Freelance writer, editor, or proofreader
- Dropshipping business
7. Have some fun with flipping used stuff
Buying something for cheap (or even getting it for free) and then flipping it for a profit is not just a thrill, but it’s a great way to get experience with negotiating, business, and sales
This is how ANYONE watching the video above can make an extra $100 – $1,000 on the weekends… Whether it’s garage sails, or craigslist free, or eBay, if you just spend your Saturdays and Sundays taking the time to do this.
Gary Vaynerchuk (Garyvee) is the chairman of VaynerX, a modern-day media and communications holding company and the active CEO of VaynerMedia, a full-service advertising agency servicing Fortune 100 clients across the company’s 4 locations
8. Take someone you look up to out to lunch
Success in life often comes down to the connections we make and the relationships we build. Relationships don’t happen by accident — you get what you put in.
If there is someone you look up to, whether it’s a business person, real estate investor, church leader, a role-model parent, or anything in between, reach out to them. You don’t need to try to “get anything” out of the lunch, per se. This is all about building a relationship. If you treat people well, good things tend to happen because of it.
9. Invest in your marriage or relationship
All marriages, no matter how good, can be made better. A good marriage has some basic qualities. Both partners are totally committed to the relationship and are willing to invest time and energy. They communicate effectively with each other and know how to resolve their differences. And they have learned to be flexible.
There is no right way to be married; many kinds of partnerships can work out great. However, there is a wrong way to be married—by not investing in the relationship.
if you have some extra cash on hand, consider using it to do something out of the ordinary for your partner. It could be a date night, a daytime road trip, getting them that book they’ve been eyeing, or anything else. The most important thing is to make sure that it’s something meaningful to them (and not just you!).
Don’t neglect your long term financial goals, but also don’t beat yourself up over living a little bit. Money is a tool meant to make our lives better, not stress us out.
10. Join a gym
Rising healthcare costs are a very real thing facing many Americans, and unfortunately they’re not showing signs of slowing down anytime soon. Many health issues are beyond our control, but the one variable we can control is how well we take care of our bodies.
Some of the most prevalent health problems facing our population are self-induced. Heart disease, Type 2 diabetes, stroke, and many other problems are believed to be more common in sedentary people than in people who regularly exercise.
On average, people who exercise regularly incur fewer healthcare expenses.
Invest in your health and your wallet by joining a gym, if you haven’t already. It’s worth every penny.
What mistakes to avoid with your $100
As you do your research and decide how to invest $100, you will likely come across a few ideas that you should stay far away from.
Don’t Invest in penny stocks. Penny stocks are usually penny stocks for a reason. Don’t waste your time.
Don’t Buy into an MLM. Instead of getting sucked into a multi-level marketing scheme where you will most likely lose money (and friendships), find another business to start where you have more control over your product and sales strategy.
Don’t Sports betting. No matter how well you think you know your sports teams, the sports getting game is always rigged against you over the long run. The sports betting industry raked in nearly $1.4 billion in revenue (on over $20 billion in bets). Don’t add your hard earned money to their bottom line.
The Power of Just $100 – And Starting Now
“What’s the point of investing if I only have $100? Any amount I make from it will be so small that it’s not even worth my time.”Biggest misconception
The point of investing $100 isn’t to turn that $100 in $1,000,000, it’s about taking the first step towards changing your financial life — forever. If you can invest $100 once, you can do it again, again, and again. And that is where the magic happens.
Investing is not a “one and done” affair.
It’s a habit that you build one day, one week, one month at a time.
And the sooner you start, the better. Even if it’s small.