Introduction
Many people believe that investing requires thousands of dollars to get started, but that’s not true. With just $100, you can begin building wealth and setting yourself up for financial success. Thanks to modern investment platforms, micro-investing, and fractional shares, anyone can start their investing journey, no matter how small the amount.
Best Ways to Invest $100
1. Invest in Fractional Shares of Stocks and ETFs
Many brokerages now offer fractional shares, allowing you to buy a portion of a stock or exchange-traded fund (ETF). Platforms like Robinhood, Fidelity, and Charles Schwab let you invest in big companies like Apple or Amazon with as little as $1.
Best for: Long-term growth and diversification.
2. Buy an Index Fund
Index funds track the overall stock market, providing instant diversification with low fees. Many brokers offer ETFs tracking the S&P 500, allowing you to invest in the top 500 U.S. companies.
Best for: Passive investing and long-term stability.
3. Start a High-Yield Savings or Certificate of Deposit (CD)
If you’re not ready for stocks, a high-yield savings account or a CD can help your money grow safely with interest.
Best for: Low-risk savings with steady returns.
4. Invest in Cryptocurrency
If you’re open to higher risk, you can invest in Bitcoin, Ethereum, or other cryptocurrencies. Apps like Coinbase and Binance allow you to start with as little as $10.
Best for: Risk-tolerant investors interested in digital assets.
5. Try a Robo-Advisor
Robo-advisors like Betterment, Wealthfront, and Acorns automatically invest your money in diversified portfolios based on your goals and risk tolerance.
Best for: Hands-off investors who want automated investing.
6. Invest in REITs (Real Estate Investment Trusts)
If you want exposure to real estate but don’t have the funds for property ownership, REITs allow you to invest in real estate companies with just $100.
Best for: Investors looking for passive income through real estate.
7. Start a Side Hustle or Invest in Yourself
Sometimes, the best investment is in your own skills and knowledge. Use your $100 to start a small online business, buy an educational course, or improve your professional skills.
Best for: Entrepreneurs and self-improvement.
Conclusion
You don’t need a fortune to start investing. With just $100, you can begin building wealth through fractional shares, ETFs, robo-advisors, and even real estate investments. The key is to start early, stay consistent, and reinvest your earnings. Over time, small investments can lead to big financial gains.