The best investment is $100
Building wealth takes a lot of time and patience, but it also requires dedicating the money you have now to taking serious, actionable steps for the future. You won’t get rich by keeping your money under your pillow, you have to invest it if you want to see it grow to its full potential. You may be wondering how you can do that with only $100, but rest assured that it is definitely better than nothing. Also know that most of the “ordinary people” who have created true wealth started with small sums, then watched it grow day by day. So whether you’re trying to figure out how to invest $100, or even $1,000, the key to getting ahead is making a decision and sticking to it. This article will tell you about some ways to invest your $100 wisely.
7 ways to invest $100
1- Round up your savings
Risk level: low
Acorns is an app that automatically “rounds up” your leftover change when you make a purchase, and then invests that money on your behalf, so that once you sign up, you can automatically grow your wealth and savings. You can also choose from our range of professionally curated portfolios that work based on your goals and risk preferences.
How do? Plans on this platform cost $1, $3, or $5 per month depending on how many features you want. The basic $1 per month “Lite” plan automatically rounds up your purchases and invests the excess, then comes the personal and family plans (for $3 and $5 per month). ) with additional benefits such as checking and access to over 55,000 ATMs nationwide at no fees.
Where do you start? To get started, open an account with Acorns and download the mobile app. Then choose your plan and start rounding up your purchases and investing the difference at lightning speed. Personal and family plans are great for stocking up on your initial $100 investment.
2- Fractional shares
Risk level: varies
Fractional stocks are nothing more than a “fraction” or “tranche” of individual stocks. This type of investment allows you to use your $100 to buy stocks that you could not otherwise afford, and also allows you to diversify your $100 investment across many different stocks that will add value to your portfolio.
How do? With Robinhood, you can buy shares of a company even if you don’t have enough money to buy a full stake. This is called “fractional stock investing”, where you can invest $10 in 10 different stocks for example, instead of buying one stock for $100.
Where do you start? Robinhood makes it easy to open an account and get started. You can even get a free bonus of up to $225 just for opening an account and meeting a few basic requirements.
3- Digital currencies
Risk level: high
Although cryptocurrencies are incredibly volatile, many experts still believe that the industry is still in its infancy, and that within the next few decades, it will be widely adopted. Some industry analysts, for example, predict that a single bitcoin will be worth $200,000 or more a few years from now.
How do? There are many good platforms that allow you to invest in cryptocurrency. You can open an account and fund the purchase of the cryptocurrency of your choice within hours, and then buy more coins and sell according to your needs and goals. Currently, BlockFi allows you to invest in BTC, ETH, LTC, and PAXG, as well as USD-based stablecoins such as USDC, USDT, GUSD, and PAX.
Where do you start? BlockFi is an excellent choice for cryptocurrency investing since there is no minimum balance requirement. This means that you can go ahead and invest your $100 freely.
4- Registering for a course or obtaining a certificate
Risk level: low
There are thousands of different online courses that you can join for less than $100, that will expand your knowledge in any field you want. Whether you want to learn how to become a better writer, how to use Photoshop, or how to become a better speaker, the options are endless!
How do? A variety of online platforms allow you to purchase courses and certifications in almost any industry. Think about a skill that could be useful in your professional or personal life. Maybe a certification will help you get a promotion at your current job, or maybe a new skill will help you quit your nine-to-five job and start working in a completely new field.
where do I start? MasterClass is the best choice for you to enroll in courses and get certificates. With this platform, you will have to pay a small weekly fee of $3.45 to enroll in hundreds of courses in arts, entertainment, music, business, etc.
Online courses and certifications can be a good investment for anyone, but MasterClass is especially a good choice if you don’t know exactly which courses you want to take. You can take a range of different courses for a small weekly fee until you find one that suits you best.
5- Open a Roth IRA
Risk level: varies
A Roth IRA is a type of retirement account that you can open in addition to other accounts you may have such as a 401(k). This type of retirement account allows you to invest your money after taxes, so that your money grows tax-free until the time comes to access it.
How do? You can easily open a Roth IRA account with any number of online brokerages. But keep in mind that your maximum income determines whether you qualify for this account, and that there are contribution limits.
Where do you start? The best platforms for opening a Roth IRA include Betterment, Stash, M1 Finance, etc. You can search for different brokerage accounts online until you find the one that best suits your needs and goals.
Roth IRA accounts make sense for anyone who wants to save money for retirement or other goals. Since it allows you to withdraw money without income taxes in retirement, it’s also a good option for people who want tax-free access to money later in life.
6- Worthy bonds
Risk level: medium
Worthy is a company that offers bonds with a fixed interest rate of 5%. Simply buy the $10 bond to get started, then watch the interest accrue in your account on a daily basis. There are no hidden fees, and the money you invest is loaned to businesses that can make a positive impact in your community.
How do? Opening an account with Worthy is easy, there are no fees or penalties involved. Since each bond only costs $10, your initial investment of $100 could help you buy 10 bonds immediately.
Where do you start? Head over to Worthy’s website and select the option to open a new account. You can buy as many bonds as you like in increments of $10 and then wait for interest to accrue to your account daily.
7- A high-yield savings account
Risk level: low
If you have $100 but don’t have any extra cash for emergency expenses, your best bet right now is to save that money. You can easily earn a better rate of return with a high yield savings account from an online bank.
How do? Online savings accounts from banks such as CIT Bank, Discover and Ally Bank offer very high interest rates when compared to the national average of 0.04%. Just be sure to compare the range of accounts until you find an option that fits the perks you want and no hidden fees.
Where do you start? Discover offers a high-yield premium savings account with no minimum deposit, no ongoing fees, and gives you the potential to earn 5 times the national average on your savings.
Your investment style
If you only have $100 to invest right now, you will have to invest in a way that matches your investment style. This pattern is likely to depend on a whole host of factors, which may include:
Whether you will need easy access to your funds
How much risk do you want to take
Your investment schedule
How much research do you want to do?
If you want to invest for the long term, you can consider options such as opening a Roth IRA or investing in cryptocurrencies or fractional stocks. Each allows you to grow your money over a long timeline with no hidden fees. If you are looking for a safer option, Worthy Bonds or a high-yield savings account may be a better option for you.
Summary
There are many ways to invest $100 if you are willing to do so. Just be sure to compare and browse all of your options before you make your final decision.
Although $100 may not seem like a lot, imagine what you can achieve if you start investing $20, $50 or even $100 per month. When it comes to building wealth, you really have to start somewhere, even if it’s small, so investing $100 is just the first step to building the life you really want.
Disclaimer: The content of this article is for informational purposes only. The information provided should absolutely not be considered as an investment advice or recommendation. There is no express or implied warranty as to the accuracy of the information or data contained herein. Users of this article agree that Money Secrets does not accept responsibility for any of their investment decisions. Not every investment or trading strategy is suitable for anyone. See the risk warning statement.