3 Methods for Beginning Investing with $100

 

Building wealth needs patience and time, but it also calls on you to use your money in practical, useful ways. After all, hoarding your extra cash and hoping for the best won't make you wealthy. If you want your money to start increasing to its full potential, you must invest it.

But how can you accomplish that if your initial investment is simply $100? Even though it's not much money, it's still better than nothing.

Be aware that the majority of "ordinary people" who have amassed substantial wealth began with modest sums, continued to invest, and watched as their wealth grew as a result. Additionally, understanding how to invest can frequently shift someone's perspective on money and lead them on the path to finding additional methods to make more money.

Even while $100 in the bank may not seem like much, it could be all you need to improve your future. You've come to the perfect place if you've been wondering how to invest $100, how to flip $100, or how to invest and earn money every day.

Can $100 Actually Change Anything?

When you initially begin learning how to invest, it may seem like you're playing a game of "catch-up," especially if you just have a modest amount of money to invest. After all, we've all heard stories of people who have gained millions of dollars by picking the correct stocks, cryptocurrencies, or non-fungible tokens (NFTs) at the right time, or by coming up with brilliant business ideas that no one else had ever considered.

But if you want to flip $100 and make significant sums of money, you really do need to alter your thinking. The truth is that there are several instances where, had you made an investment at the proper time, $100 could have grown to thousands, tens of thousands, or even hundreds of thousands.

Can $100 Really Make You a Millionaire?

If you don't want to take chances that could or might not pay off, you can nevertheless amass wealth over time by making comparatively modest investments. Making sure your payments are automatic and consistent, as well as investing in assets that may offer a somewhat stable return, are the keys to winning this game.

A $100 monthly investment into a mix of index funds, exchange-traded funds, and individual stocks, for instance, has a 100% chance of growing to more than $1 million over time.

Even if you might have to wait several years to become a billionaire, it is still very feasible. The chart below illustrates how long you would need to invest for and the kind of return you would need to achieve $1 million in lifetime wealth.

1.Round up any remaining funds.

When you make a purchase, the Acorns app automatically "rounds up" your change so it can invest it on your behalf. You can instantly increase your wealth and savings when you enroll in a plan. Additionally, depending on your objectives and risk tolerance, you can select from among professionally curated portfolios that may perform better or worse.

How It Works: Depending on whether you want a personal plan or a family plan, plans cost $3 or $5 per month. Both programs automatically invest your spare change after rounding up your purchases, and they also include extra features like checking and fee-free access to more than 55,000 ATMs nationwide.

Where to Start: Create an account with Acorns and download the mobile app to get going. Choose your strategy, and you can start investing the difference as soon as you round up your purchases. Your initial $100 investment would be well-placed in the top Personal and Family plans. See more details in my evaluation of the Acorns app.

2. Play around with fractional shares.

A "fraction" or "slice" of a single share of stock is what fractional shares are. Because of this, you can use $100 to buy stocks and other investments that you normally couldn't afford. Additionally, you can diversify your $100 investment by spreading it among a variety of equities and other assets that would be beneficial to your portfolio.

How It Works: Even if you don't have enough cash to purchase a whole share, you can still purchase stock in a corporation. It is known as investing in fractional shares. You could invest $10 across 10 different stocks as opposed to purchasing one share of a $100 stock.

Where to Start: Opening an account and getting started is simple with several online brokers. This platform also offers 0% cost and $1 minimum starting investments for BTC, ETH, LTC, DOGE, and other cryptocurrencies.

Who It's Best For: Since there are no commissions and no minimum balance requirements to get started, many internet brokers are a perfect choice for investing in fractional shares. For any investor who wishes to diversify their holdings as much as possible, fractional share investment can be an excellent choice.

3. Purchase real estate.

Over the past ten years, and particularly in the last three years, investors who put a lot of their money into real estate have done exceptionally well. In fact, the National Association of Realtors (NAR) recently revealed that between May 2021 to May 2022, the national median price for a single-family house increased by 15.7%. That's a rather nice return for only one year, and this pace of growth follows a decade of consistently growing prices for all types of housing.

Nevertheless, the real estate sector has a very high entry barrier because it costs tens of thousands of dollars to start amassing assets. I usually advise investing in real estate through alternative channels, such as Real Estate Investment Trusts (REITs).

How It Works: You may invest in real estate without having to acquire individual properties or deal with the drudgery of being a landlord by purchasing Real Estate Investment Trusts (REITs). After choosing a fund and making consistent investments, your investment balance can increase as a result of real estate gains that are recognized over time.

Where to Start: My preferred platform for Real Estate Investment Trust investments is Fundrise (REITs). However, this business specializes in selling private equity REITs, often known as "eREITs," a name that is trademarked. With Fundrise, you can open a starting account for as low as $10, and these accounts have auto-invest and dividend reinvestment capabilities.

Who It's Best For: People who want to invest in real estate without having to deal with the headaches of purchasing individual homes can use Fundrise. There are numerous additional well-known REITs available for selection, including selections from brokerage houses like Fidelity and Vanguard.