Luis Pazos 
Building wealth takes time and patience, but it also requires real, actionable steps with your money. You can’t get rich by hiding your extra cash under a mattress; you need to invest it to see it grow to its full potential. But how do you start investing with just $100? It’s not a lot, but it’s definitely better than nothing.
Many "regular people" who’ve built significant wealth began with small sums, kept investing, and watched their money grow over time. Learning how to invest can change your mindset about money and get you on a path to earning more in different ways.
Can $100 Really Make a Difference?
Starting with small amounts can feel like you’re playing catch-up, especially when you’ve heard stories of people making millions by investing at the right time in the right stocks, crypto, or NFTs. But shifting your mindset is crucial if you want to turn $100 into substantial money. There have been plenty of opportunities where a $100 investment at the right time could have grown significantly.
For instance, if you invested $100 in Bitcoin a decade ago, it would be worth a lot more today. These success stories happened to real people who took a chance or had a great idea at the right time.
Can You Really Become a Millionaire With $100?
You don’t have to take big risks to build wealth. Consistently investing small sums of money over time can help you become a millionaire. The key is to invest in assets that offer steady returns and to make your contributions consistent and automatic.
For example, investing $100 per month into a mix of index funds, ETFs, and individual stocks can potentially grow into more than a million dollars over a long period. It might take decades, but it’s definitely possible.
What Should You Do With $100?
You have three main options for your $100:
- Spend it on things you want right now.
- Save it in an emergency fund or use it to pay down debt.
- Start investing it for the future.
While you might need to give up some current luxuries to invest $100 a month, your future self will thank you. You’ll get used to setting aside money each month, and you may not even miss it after a while.
Investing for Quick Profits vs. Long-Term Gains
Decide whether you want to invest for quick profits or long-term gains. Flipping items for a profit—like finding valuable thrift store items or offering a small service—can turn your $100 into more money quickly, but it requires time and effort.
On the other hand, investing for long-term wealth is generally more passive. Investing in index funds, ETFs, fractional shares, or even real estate can help you build wealth over time without much ongoing work.
How to Invest $100 Starting Today
The key to getting ahead is making a decision and sticking with it. Here are ten strategies to start investing your $100:
- Round Up Your Savings: Apps like Acorns round up your spare change from purchases and invest it for you.
- Dabble in Fractional Shares: Invest small amounts into high-priced stocks with platforms offering fractional shares.
- Invest in Real Estate: Consider REITs, which let you invest in real estate without buying properties.
- Buy Index Funds: Easily invest in a broad range of stocks that track market indexes.
- Collect Dividends: Invest in dividend stocks to earn regular payouts.
- Enroll in a Course or Certification: Use your $100 to learn a new skill that could boost your income.
- Open a Roth IRA: Save for retirement with after-tax dollars, growing your money tax-free.
- Worthy Bonds: Earn a fixed interest rate with no fees by investing in Worthy Bonds.
- Open a High-Yield Savings Account: Save your money in a high-yield savings account to earn better interest.
Your Investment Style
Your investment choices should align with your investment style, which depends on whether you’ll need quick access to your money, how much risk you’re willing to take, your investment timeline, and how much research you want to do. Options like a Roth IRA, cryptocurrency, or fractional shares are great for long-term growth. If you need safer, more accessible options, consider Worthy Bonds or a high-yield savings account.
Invest $100 to Make $1,000 a Day
Earning $1,000 a day in passive income is a lofty goal. To achieve this, you would need a large investment portfolio, but starting with $100 now can set you on the path. The earlier you start investing, the faster you can work toward your goals.
Don’t Waste Your $100 on This
Avoid get-rich-quick schemes. These usually don’t help you build wealth and can waste your initial investment. Schemes to avoid include penny stocks, options trading, meme coins, and pyramid schemes. If something sounds too good to be true, it probably is.
The Bottom Line on Investing $100
There are many ways to invest $100, just as there are good strategies for $1,000, $5,000, or more. Compare your options and invest when you’re ready. Although $100 might not seem like much, regular investing can lead to significant wealth over time. Starting small is the first step to building a better financial future.
FAQs on Investing $100
If you’re a beginner with $100 to invest:
- Consider low-cost index funds that offer broad exposure to the market.
- Use a robo-advisor to automate your investments based on your goals.
- Look into crowdfunding platforms for real estate projects.
Remember, all investments carry some risk, and returns are never guaranteed. But investing even a small amount can grow significantly over time due to compounding interest.
Whether it’s worth investing $100 for the long term depends on your goals and risk tolerance. Over decades, even small monthly investments can grow substantially. For example, a $100 monthly investment earning a 10% return could grow to around $170,000 over 30 years.
