How to Start Investing with Just $100
Hey there! Think you need a ton of money to start investing? I’m here to tell you that’s not true—you can get started with just $100! Whether you’re saving your first few bucks or looking to diversify a bigger portfolio, investing doesn’t have to be intimidating. In this guide, I’ll show you how to take that $100 and turn it into the start of something big, using simple tools like micro-investing apps and ETFs. Let’s break it down and get you investing, no matter your income!
Why $100 Is Enough to Start Investing
Let’s bust a myth: you don’t need thousands to invest. Thanks to modern tools, $100 can be your ticket to building wealth over time. Here’s why starting small works:
The Power of Compounding: Even a small amount grows over time with compound interest. For example, $100 invested at a 7% annual return could grow to over $196 in 10 years—without adding a penny more!
Low-Barrier Options: Micro-investing apps like Acorns or Robinhood let you start with as little as $5, and you can buy fractional shares of stocks or ETFs.
Learning by Doing: Starting with $100 lets you dip your toes in, learn the ropes, and build confidence without risking a lot.
Here’s a quick look at how that $100 can grow over 10 years at a 7% return:
Real-Life Investing: From $100 to $1M Goals
Let’s see how two people—one just starting out, and another with bigger goals—used $100 to kick off their investing journey.
Jordan’s Story ($100 to Start): Jordan, a 22-year-old barista, had $100 saved from tips. They downloaded Acorns, set up a recurring $5 weekly investment, and put their $100 into a diversified ETF portfolio. After a year, with a 6% return, their $100 grew to $106, plus they added $260 more through weekly contributions. Jordan says starting small gave them the confidence to keep going.
Emily’s Story (Diversifying with $100): Emily, a 40-year-old exec with a $1M portfolio, wanted to test a new robo-advisor. She invested $100 in Stash, buying fractional shares of a sustainable energy ETF. After a year, her $100 grew to $108 with a modest return, and she learned about a new sector to diversify her larger investments. Emily says even small experiments can lead to big insights.
What do Jordan and Emily have in common? They both started with $100 and took that first step. It’s not about the amount—it’s about starting!
Your Turn: Start Investing in 5 Steps
Ready to turn your $100 into the start of something big? Here’s how to get going:
Choose a Platform: Pick a beginner-friendly app like Acorns, Robinhood, or Stash. They let you start small and often have no minimums.
Open an Account: Sign up—it takes 5 minutes! Link your bank account to deposit your $100.
Pick an Investment: Start with an ETF (like the S&P 500) for diversification. You can buy fractional shares to spread your $100 across multiple assets.
Set Up Recurring Investments: Even $5 a week adds up. Automate it so you don’t have to think about it.
Track and Learn: Check your app monthly to see how your $100 is growing. Use it as a learning tool to understand markets and risk.
Let’s Test What You’ve Learned!
Here are a couple of quick questions to make sure you’re ready to invest:
1. What’s one benefit of starting to invest with $100?
A) Learning by doing B) Avoiding all risk C) Instant millions
2. What’s a good first investment for $100?
A) A single stock B) An ETF C) A luxury car
Drop your answers in the comments—I’d love to hear your thoughts! And if you’ve got investing questions, let’s chat there too.
Ready to start investing with your $100? I’ve put together a free Beginner’s Investing Checklist to guide you every step of the way. Grab it below and let’s make your money work for you!
