How to Start Investing with Just $100
Investing often sounds like something only wealthy people do, but the truth is, you don’t need a fortune to get started. Even with just $100, you can take the first step toward building wealth, and the sooner you start, the better. Here’s how to make that small investment work for you.
1. Open a Brokerage Account Many online brokers allow you to open an account with no minimum deposit. Look for a platform with low fees, a simple interface, and fractional shares, this lets you invest in big companies with just a few dollars.
2. Consider Fractional Shares If you’ve got your eye on a company whose stock price is sky-high, fractional shares allow you to buy a piece of that stock instead of waiting until you have enough for a full share. This is a game-changer for small investors.
3. Invest in Index Funds or ETFs A great way to diversify right away is by putting your $100 into an index fund or exchange-traded fund (ETF). These funds spread your money across multiple companies, reducing risk while still offering solid returns over time.
4. Use a Micro-Investing App Apps like Acorns or Stash make investing automatic and effortless. You can start with just a few dollars, and many of these apps offer round-up features that invest your spare change.
5. Focus on Consistency The most important habit in investing isn’t how much you start with, it’s how regularly you contribute. Set up an automatic transfer to add a little to your investments each month, and you’ll be surprised how quickly it grows.
6. Reinvest Your Earnings Whether it’s dividends from stocks or returns from a fund, reinvesting your earnings accelerates growth thanks to the power of compound interest.
7. Keep Learning Investing $100 might feel small now, but it’s the beginning of a journey. As you see your money grow, you’ll build confidence, learn more about the market, and be motivated to invest more.
Starting small is better than not starting at all. That $100 could be the seed that grows into financial freedom, all it takes is a little patience, consistency, and smart choices.
