How to Invest $100 Starting Today | Investment Tips and Guidance

How to Invest $100 Starting Today | Investment Tips and Guidance

Investment can be a make or break factor for anyone. But most people think that you need a huge quantum of money to start making investments—it’s a complete myth. 

You can start off with a meager amount of investment as low as $100. If you know the right tricks of investment, you can plan your long and short-term goals accordingly to become financially independent in a few years. 

Things You Should Consider Before Investing

Investment Technique 

Your investment style and technique matter a lot. It becomes extremely crucial when you are left with only $100 to invest. However, in the world of investment, every penny matters. Your style of investment can be either making a lump-sum payment or in installments. 

Access to Fund 

Once you allocate money to a particular fund, you need to know whether you can get access to it before the maturity date or not. While deciding on such a point, you can opt for either open-ended or close-ended investment options. 

Risk-Taking Capabilities 

If you wish to play safe, avoid investing a huge chunk of money in stocks and shares. You have to choose other safe alternatives instead. It depends upon a person’s risk-taking abilities which investment option you should choose. 

Investment Timeline 

You have to draw an investment timeline so that you can plan your investment strategy accordingly. If you are okay parting away with your $100 now, you can opt for plenty of fast investment options like Cryptocurrency and others. 

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Why Shouldn’t You Wait to Make Your Investment? 

Even the best financial experts don’t know the right time to make an investment. This very question can puzzle any financial expert and even the entrepreneurs. Because the simple concept is the longer your money stays invested, the better will be the ROI. 

Waiting for the right time to invest is just like waiting for a day when we can peacefully settle on the Moon! 

The right time is hypothetical. But a pragmatic approach to investment is the key. Governments may change, share markets may rise or fall, but your long-term financial goals matter. The right time to make an investment is now. Don’t wait for anymore. Get, set, go and start investing. If you keep on waiting for the right time, that day won’t come forever! 

How to Invest $100 Starting Today?

Start an emergency fund

Before making any investment, don’t forget the essence of an emergency fund. It is all about keeping a certain amount of funds ready to meet any future emergency. 

Creating an emergency fund will give you immediate relief in times of a medical crisis or sudden job loss. For creating an emergency fund, you can keep $100 or more in your savings bank account ready. 

Round-Up Your Savings 

Using an app like Acorns can help. Get yourself registered on the app first. The next step is to subscribe to a plan, which helps in the gradual growth of your fund. If you are a newbie, you can opt for a professional plan. 

For example, if you subscribe to the basic Lite plan, then automatically it will charge $1 monthly while making purchases. The spare changes will be automatically invested in later inappropriate schemes. Acorns are ideal for people who love online shopping. 

[Read more: How to Do the 100 Envelope Challenge and Save $5000?]

Certificates Of Deposit 

Certificates Of Deposit are a useful investment tool to grow your fund. Through CD, you lend a certain amount of money to a bank. In return, the bank will pay interest on the amount at a specific rate. 

The duration of CDs can vary from months to decades depending upon the period for which you wish to keep your money invested. 

Worthy Bonds 

Worthy is a bonds-offering company. It offers a 5% interest in the bonds. For buying a bond, you need to spend at least $10. Your interest rate is calculated on a daily basis and there is no hidden fee in the process. 

With $100, you can buy at least 10 bonds from the Worthy website. The company started launching bonds in 2016.   

Open a High-Yield Savings Account 

If you keep $100 invested in a high-yield savings account, it helps you earn a better rate of return. You can get your new bank account opened in banks like Ally Bank, CIT Bank, and Discover. 

Discover has no minimum deposit requirement and no hidden fees. You should get your bank account opened at Discover now to get avail of its benefits.

Dabble in Fractional Shares 

Fractional shares are just a slice of a stock. With $100, you can buy a fractional share. So you can buy $5 in 20 different stocks. You can take help from Robinhood (a brokerage firm) to dabble in fractional shares and make money. 

Robinhood offers all its customers the benefit of getting a free stock DEMAT account opened on their platform. 

Invest in a stock index mutual fund or exchange-traded fund 

Mutual funds have emerged as the most convenient investment option for cautious users. If you want to invest just $100, investing in mutual funds can help. However, you need to invest in a stock index fund. 

It means when you invest $100 in the NYSEMKT: SPY, you get to own a tiny portion of all listed companies in the S&P 500 index. It helps you get the benefits of stock diversification. A wide variety of options are available when it comes to choosing a stock index mutual fund. 

[Read more: New Money vs Old Money: Key Differences You Should Know]

Invest in Cryptocurrency 

Investing in cryptocurrency for the first time is difficult. Many people are not aware of it, and most importantly, they fail to understand the dynamics of crypto trading and investment. However, if you are determined to invest $100 in cryptocurrencies, choosing top crypto coins like Bitcoins, Ethereum, and others can do wonders for you. 

You can invest in BlockFi to get started. You can invest any amount in crypto coins. If you are not too sure, you can get started in crypto trading by investing $15 today. 

Enroll in a Course or Certification 

It works with the simple concept that if you keep enhancing your knowledge and skills, you will get better promotional options in your job or profession. In turn, it will increase your income too. 

Whether you are good at finance or web designing, taking appropriate certification courses can help you enhance your expertise and get better job opportunities. You should watch out for such courses available below $100. 

Put it in your 401(k)

401K is an employer-sponsored retirement plan for his employees. Here, the employer contributes a certain sum of money to the employee’s 401 k account.

Investing in a 401K doesn’t attract a lot of taxes. Moreover, every dollar you invest in 401K remains tax-free. You don’t need to pay any tax on any income you earn from 401K. 

Open a Roth IRA 

A Roth IRA is a typical retirement account you can open along with 401k. You can withdraw any amount from your ROTH IRA funds anytime you wish to. However, you need to be at least 59 years to make any withdrawal from a Roth IRA account. Employees below 50 can invest up to $6000 in a Roth IRA. 

In Conclusion 

From the above, it’s clear that $100 is not a meager amount of money. If you invest it correctly, you can easily multiply your income. The idea is to start investing early so that you can get the benefits of compounding. 

Don’t wait. If you have $100, keep it invested in any of the above schemes as explained above for a long time. You won’t believe how it will grow into a huge corpus of funds in a few years. Let us know if you have any doubts.

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TheLiveCash is a team of experts in finance and banking. We are striving together to bring financial clarity to readers across the world. We write about savings, making and budgeting money, investing, taxes, loans, and all other financial topics.