Many individuals fear retiring without sufficient funds, often because they believe they lack the money needed to invest. However, if you’ve ever had just $100 in your wallet or bank account, you already possess the minimum amount required to initiate your investment journey. The key takeaway: you can start investing with just $100.
The critical step is to take action and begin. This article outlines how you can get started, regardless of your current financial situation or preconceived notions.
$100 is More than Enough
Consider the value of $100 today. It could cover a dinner for two at a mid-priced restaurant, fuel up an SUV twice, or even secure a concert ticket. Alternatively, this amount could mark the beginning of your investment endeavors – a choice that transforms $100 into a life-changing opportunity.
This is not an exaggeration. Unlike other spending choices where money is gone once spent, investing allows you to not only preserve your initial amount but also accumulate earnings over time. With consistent investments, you can turn $100 into $1,000 or even $10,000.
The caveat is harnessing the time value of money – the principle that money grows over time when invested wisely. Positioning yourself to benefit from this principle is crucial. To make this work for you, you need to start, and $100 is more than adequate. In fact, this article will introduce investment options that let you invest $100 in various avenues.
The Changing Investment Landscape
In the last few decades, the investment landscape has transformed significantly. Even the smallest investors now have opportunities. Various investment accounts can be opened with just a few dollars.
If you’re not partaking in these opportunities, you’re missing out on the chance to create a better financial future for yourself and your family.
Where to Invest with $100
In addition to micro-investing apps and robo-advisors mentioned in “Can You Invest with $5? Easily – Here’s How,” other investment options open up with an initial investment of $100.
Micro-Investing Apps
Ideal for those unable to save enough to start investing, micro-investing apps incorporate micro-savings features alongside investment options. They’re perfect if you struggle to save but still want to invest. Examples include:
- Acorns: Utilizes “Round Ups” to invest spare change; offers robo-advisor investment.
- Stash Invest: Facilitates small regular contributions and offers investment recommendations.
- Rize: Enables goal-based savings that can be invested in ETFs; allows flexible fee payment.
Robo-Advisors
Designed for those who can save and are ready to start investing, robo-advisors are automated online platforms that cater to new and small investors. They offer benefits like low fees, portfolio diversification, and professional management. Some popular options are:
- Betterment: Requires no initial funding and charges a low annual fee.
- WiseBanyan: Open with just $1 and enjoy free professional investment management.
- Ellevest: Tailored for women, no minimum investment, and a low annual fee.
- Fidelity Go: No minimum initial investment, with an annual management fee of 0.35%.
Real Estate Crowdfunding
For those looking to diversify into real estate with a small investment, real estate crowdfunding platforms enable you to invest in property deals with minimal funds. Examples include:
- Groundfloor: Allows investments for as low as $10 in property flipping deals.
- Rich Uncles: Offers real estate investment trust (REIT) options with low minimum investments.
Investment Brokers
Investment brokers enable you to open accounts with little to no money, making them ideal for ETF investing and self-directed approaches. Notable options include:
- Ally Invest: Offers $0 trading fee and a user-friendly platform.
- Robinhood: Provides fee-free trading and is perfect for individual stock investing.
- Fidelity: Offers ETF investing and a low trading fee.
Where Not to Invest with $100
While we’ve recommended certain investment avenues, some may wonder why certain options like individual stocks, mutual funds, collectibles, and fixed income investments haven’t been included. These options may not be feasible with an initial investment of $100 due to minimum requirements or high risk.
Conclusion
Investing with just $100 is entirely possible and can set you on a path to financial growth. By leveraging micro-investing apps, robo-advisors, real estate crowdfunding, and investment brokers, you can diversify your portfolio and start building your financial future. While this article focuses on $100, the strategies outlined here can apply to larger amounts as well. The key is to take the first step, allowing time to work in your favor as you embark on your investment journey.