Do you think you need thousands of dollars to begin investing? Think again! If you have ever asked yourself how to start investing with just $100, you are not the only one—and luckily, it is possible! Thanks to available platforms, micro-investing, etc., new investors with small amounts of money can get started on their path to building wealth.
With this ultimate guide, you will learn everything you need to know to make your first investment. Whether your goal is to save for retirement, grow wealth, or get started, we will make it easy by breaking it down into a few simple steps you can take right now.
The sooner you start, the better - even if it is with small amounts of money. Compound interest will allow your money to grow exponentially over time. In other words, the $100 you invest might not be much today, but investment compounding can turn it into thousands of dollars over time.
Example:
Investing $100 monthly at an average annual return of 7% can grow to more than $12,000 in 8 years and more than $120,000 in 30 years.
The bottom line is that getting started early beats starting big. It's not about how much you invest but how soon and how often.
Before embarking on your low-cost investing journey, consider what your goals are:
Your goal will help you determine a strategy and what type of investment will also work for you. Long-term goals (like retirement) may be best served with stocks or index funds, while short-term goals may be focused on a savings account or bonds.
Not all brokers require overwhelming amounts. Now, numerous apps and platforms cater to beginner investors, where little is needed for a minimum or none.
Buying shares in companies or diversified exchange-traded funds (ETFs) is a common way to get started. Many brokers now offer fractional shares, so your $100 can buy a piece of Amazon, Apple, or the S&P 500.
Pros:
Best for: Long-term growth
Services like Betterment or Wealthfront automate your investing. You answer a few questions, and they create a diversified portfolio for you.
Pros:
Best for: Passive investors and those who prefer guidance
If your goal is ultra-low risk, start with a high-yield savings account or certificate of deposit (CD). These offer better returns than traditional savings.
Pros:
Best for: Emergency savings or short-term goals
Platforms like Coinbase or Robinhood let you buy small amounts of crypto. While volatile, it’s an option if you’re curious and willing to accept higher risk.
Pros:
Best for: High-risk, experimental investing
$100 can go toward a course, eBook, or workshop that boosts your skills and future earning power. That’s a powerful form of investing, too.
Investing involves risk, but you can manage it. Here’s how:
Use tools like risk questionnaires on investing apps to find your ideal balance.
That first $100 is just the beginning. The goal is to make investing a habit.
These small efforts build momentum and gradually increase your portfolio’s value.
Trying to buy low and sell high is risky, even for experts. Time in the market beats timing the market.
Just because a stock is hot on Reddit doesn’t mean it’s smart. Stick to fundamentals and research before investing.
High fees can eat into your returns. Always check expense ratios on funds or commissions on trades.
The market reacts daily, but long-term investors need patience. Avoid panic selling.
Knowledge compounds just like money. The more you learn, the better your investing decisions will be.
The Simple Path to Wealth by JL Collins
I Will Teach You to Be Rich by Ramit Sethi
You can make learning part of your investing journey.
Use your investing platform or personal finance apps like Mint, Personal Capital, or YNAB to monitor:
Even with just $100 invested, seeing progress can motivate and reinforce good habits.
Investing $100 won’t make you rich overnight. But it’s a decisive first step. Here’s how it might look over time:
| Monthly Investment | Annual Return | 5 Years | 10 Years | 20 Years |
| $100 | 7% | $7,108 | $17,308 | $52,092 |
| $100 | 10% | $7,753 | $20,484 | $68,730 |
The key takeaway? Consistency + time = serious growth, even with small investments.
Q: Can I lose money investing just $100?
Yes, any investment carries risk. However, choosing diversified, long-term options reduces that risk significantly.
Q: Should I pay off debt before investing?
If you have high-interest debt (like credit cards), prioritize paying that down first. For lower-interest student loans or mortgages, you can invest alongside repayment.
Q: How often should I check my portfolio?
Once a month is enough for beginners. Please don't worry about obsessing over daily changes.
Q: What if I only have $10 to invest?
Platforms like Acorns, Stash, and Robinhood let you start with even less than $100. Don’t wait—start with what you have.
Starting small is better than never starting at all. Learning to start investing with $100 is the beginning of a lifetime of investing. If you have the right attitude, contribute consistently, and educate yourself, you’ll earn much more than money: you’ll gain confidence, discipline, and the beginnings of a lifetime of wealth.
Keep in mind that every investor starts somewhere. You can become an investor with $100 and a plan today.
This content was created by AI