10 Ways to Start Investing with $100

Personal finance tips, personal finance, 10 ways to start investing with $100,, invest

The advice to start investing early and quickly is often presented as a way to achieve financial stability. But when you have little to no money to spare, setting aside a few thousand dollars for investment seems like a far fetched idea. 

However, you don’t have to hold heaps of money to embark on a journey of investment. To help you get started, here are 10 ways on how to invest with 100 dollars in your wallet.

1. Put the Cash in Your Savings Account

The easiest way to invest your $100 without any risk is investing it into a high-yield savings account. These savings accounts typically allow you to earn interest on a daily basis, which is then deposited into your account as a monthly earning. 

You can also earn compounded interest, which means that you can make profits on your original deposit as well as the amount that you generated through interest. 

2. Choose an Exchange-Traded Fund

An exchange-traded fund (ETF) is an easy way to learn how to invest with little money. Through ETFs, you can invest your money in a basket of different securities that are tracking an established index. 

The price fluctuations on ETFs can often provide you with good returns. Since ETFs can follow various securities such stocks, bonds, and cryptocurrencies, they can be a viable method for investment.

3. Go for a Mutual Fund

A mutual fund allows you to invest in a variety of securities at once. Through this mechanism, you can diversify your portfolio across different options such as an array of stocks. 

When looking for ways on how to invest with 100 dollars, you can find plenty of offerings for mutual funds on the market. This makes it easy to choose a reliable provider for your money management needs. 

4. Select a Robo-Advisor Solution

A robo-advisor platform assesses your investment capabilities and provides you with automated investment strategies. These strategies let you choose between options that are the right fit for you based upon your financial strength. 

This takes the burden of hunting for investment opportunities off your shoulder. At the same time, it allows you to get started on the path of learning how to invest with little money almost right away. 

5. Get Fractional Shares in Stocks

The stock market is one of the most popular investment options for seasoned and institutional investors. But if you only have $100 at hand, traditional entry into the stock market can be next to impossible. 

That is where you can get fractional shares in stocks. This allows you to buy diversified stocks with little money, while also benefiting from their respective gains overtime. 

6. Deposit It In Your IRA

An individual retirement account (IRA) allows you to stash your funds towards retirement. In addition to your savings, IRAs also provide you with gains over any investments that they have made from your funds. 

This makes IRAs a great option while learning how to invest with 100 dollars. As a result, if you want to save up for your retirement, going with this option can be a viable approach.

7. Contribute to Your 401(k)

The 401(k) is an employer-backed retirement plan that works similar to an IRA, but with constant contributions from your employer. By increasing your investment in the 401(k), you can reap significant rewards. 

This approach is ideal if you are still a bit behind from matching your employer’s maximum 401(k) contributions. Since this increases the value of your $100 investment, it is a highly sought after approach to follow.

8. Pay Off Your Debt

While learning how to invest with little money, don’t forget about any debt that you have racked up. It is because most debts take additional money away from you through their interest. 

By paying off your commitments such as payday loans and credit card debt, you can steer clear from their interest payments. This allows you to save your money in the long run.

9. Become a Small Lender

If you want more options to use your investment, you can consider the use of peer-to-peer lending apps. Through these options, you can find people who are looking for micro-financing at a significant rate of interest. 

By matching with such individuals, you can lend them your $100 or any amount that you have. You can then earn profits according to the loan terms that you agreed upon.

10. Obtain a Certificate of Deposit

While looking for ways on how to invest with 100 dollars, you should consider a certificate of deposit (CD). This mechanism allows you to lend your money to the bank for a certain period of time against a certain amount of interest. 

This means that your money is locked in within the CD until your terms expire. However, the safety and clear conditions of this mechanism make it a popular option among various investors. 

By considering these options to make the most out of your $100, you can embrace financial freedom without stretching yourself thin.

Invest Early and Invest Well

There is this ancient Chinese proverb that states “The best time to plant a tree was 20 years ago. The second best time is now.”

The earlier you are able to invest, the better off that you will certainly be. Of course, it is essential to invest in the right way and the right places to maximize your overall gains.

In many times, you will notice that there are various investments that are destructive to capital. It is a great idea to always due your due diligence. One of the best investments is to invest in yourself.

Whether you are exercising, purchasing the right courses, learning new skills, or taking other actions that improve your life overall, this is a fool proof investment.

For instance, eating well, specifically, eating healthy is an investment. It is easy to eat fast food, junk food, and food that might be cheap, but if you allocate a hundred dollars and invest in cooking simple but healthy meals, that will pay off with a higher quality of life.

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