17 Ways to Start Investing with $100 or Less
Ever wondered what the hardest part of investing is? Starting. Don’t be discouraged if haven’t got thousands of dollars to invest – instead, you can begin with $100. It’s not that easy to start small because you’ll need to find an investment that is worth your time and money – not to mention brokers with account minimums. But, we’re going to show you 17 ways you can invest with $100 or less and make your piggy bank explode.
1. Savings Account
This might sound like a boring option, but it’s extremely safe. The idea is to put your $100 or less into a high yield savings account until it grows. Then, after some time, you’ll be fully equipped to take on some investments that’ll earn you more. Once you a hit $1,000, you’ll have many more opportunities to grow your money. The best rates for high-yield savings account are currently around 1.30%, and lots come without a minimum limit or monthly fee.
2. Betterment
Betterment is a new style of investment broker that uses ‘robo-advisors’. There’s no need to pay them for their time like their human counterparts, instead, they’ll automatically invest based on your tolerance risk. It used to cost $100 per month to start a Betterment account, but the requirements have changed. You can now start investing with just $100.
Additionally, there’s another great company called Acorns. They’ll round up your spare change and invest it for you – this is called micro investing and you’ll need far less than $100 to start.
3. Ally Invest
Ally Invest, formerly known as TradeKing, is an online broker that costs $4.95 per trade. Compared to leading trading companies like E*Trade and TD Ameritrade this is a cheaper rate. You can invest in an IRA or Roth IRA with just $100 – at Ally Invest there is no minimum, so you’ve got no excuse.
4. Your 401(k)
Investing in your retirement plan is a great idea. Though, many Americans fail to take advantage of their 401(k) plans. If you’ve got employer match on your 401(k) you can double in your money instantly, though you won’t be able to access it until you come of age.
5. Yourself
Investing in yourself is worthy of your $100, but it’s how you do it that counts. One example is to take online courses so you can expand your knowledge and skillset, and in time, your salary or to create a side-hustle. Another idea is to take your mentor out to lunch and pick their brains.
6. Books
You’ve probably read a few life-changing books already, but were they about finance? If not, you should add The Art of Work by Jeff Goins and People Over Profit by Dale Partridge to your reading list.
Here are 3 more classics:
- The Total Money Makeover by Dave Ramsey
- The 4-Hour Workweek by Tim Ferriss
- I Will Teach You to Be Rich by Ramit Sethi
7. Start a Business
Owning a business is one of those things that can maximize your earning potential. Whether you start a small local business or an internet-based one, if you’ve got a great business idea you should get started right now.
8. Prosper
Prosper is a peer-to-peer lending platform and you only need $25 to get started. You’ll lend your money to others who need it and earn an average of 7% back depending on the loan. This time of platform is a different approach to borrowing and lending money as there are no banks or credit unions involved. According to the website, 83.5% of investors who received returns met or exceeded their expectations.
