You might feel like investing is something only rich people do. You might think you need a lot of money to get started. But that’s just not true. In fact, you can start with as little as $100. The important thing is to start now.
Starting small might not seem like much, but it’s the first step toward building wealth. It’s the habit of putting your money to work for you. That’s how you turn $100 into something bigger over time. Let’s dive into how you can make your first investment today.
Why Start Investing with Just $100?
You might wonder, “Is $100 really enough to start investing?” The answer is yes. You don’t need to have thousands to begin. What matters is getting your foot in the door and letting your money grow. Here’s why investing with just $100 can make a difference:
- Time is your best friend: The earlier you start, the more time your money has to grow through compound interest.
- Building a habit: Investing small amounts helps you build good financial habits. You learn how to invest, how the market works, and how to keep going—even with ups and downs.
- Access to tools: Today, there are plenty of investment platforms that let you start with as little as $1. So you can start small, even with $100, and still benefit from the power of investing.
It’s not about getting rich overnight. It’s about building wealth slowly, one small step at a time.
Simple, Low-Risk Ways to Start Investing
If you’re new to investing, it’s normal to feel a bit nervous. The good news is, you can start small and keep it safe. Here are some low-risk ways you can invest $100:
1. Exchange-Traded Funds (ETFs)
If you want to spread out your risk, ETFs are a great option. An ETF is a bundle of stocks or bonds. When you invest in one, you’re spreading your money across many companies at once. This makes it less risky than putting all your money into a single stock.
- Where to start: You can buy ETFs on platforms like Vanguard or Robinhood.
- Why ETFs? They’re cheap, low-risk, and you don’t need to pick individual stocks.
2. Fractional Shares
Some stocks are expensive—like Apple or Amazon—but with fractional shares, you don’t have to buy a whole share. You can buy just a piece of it. This lets you invest in big companies even if you only have $100.
- Where to start: Use platforms like Fidelity or Schwab to buy fractional shares.
- Why fractional shares? It’s a great way to own stock in your favorite companies without needing a lot of cash.
3. Robo-Advisors
Want to invest but don’t know where to start? A robo-advisor could be the answer. These platforms do all the hard work for you. They choose investments based on your goals and risk level. All you have to do is deposit your $100 and let the robo-advisor do the rest.
- Where to start: Check out Betterment or Wealthfront.
- Why robo-advisors? They take the guesswork out of investing and manage everything for you.
4. High-Interest Savings Accounts
This isn’t investing in the stock market, but it’s still a smart move. High-interest savings accounts let you earn more than a regular bank account. If you want to keep your money safe but still grow it a little, this is a great place to park your $100.
- Where to start: Look for accounts at Ally or Marcus by Goldman Sachs.
- Why savings accounts? They’re safe and easy, and your money is accessible when you need it.
The Power of Compound Interest
One of the most amazing things about investing is something called compound interest. It’s how your money grows over time. When you invest, your money earns returns, and those returns start to earn more returns. It’s like a snowball effect.
Let’s say you invest $100 today, and you earn an average of 7% per year. After 10 years, that $100 could grow to nearly $200—even if you don’t add another dime. Now imagine adding small amounts to that $100 over time. The more you invest, the more you take advantage of compound interest.
Step-by-Step: How to Start Investing with $100
Starting is easier than you think. Here’s a simple plan to get you going:
- Set a goal: Why are you investing? Are you saving for something specific like retirement, a house, or just building wealth over time? Knowing your goal helps you pick the right investments.
- Pick your platform: Decide where you want to invest your $100. Do you want the ease of a robo-advisor, or are you interested in picking ETFs or fractional shares? Choose the platform that works for you.
- Make it a habit: If you can, try to add more money to your investments over time. Even if it’s just $20 or $50 a month, it makes a big difference over the years.
- Stay consistent: The key to investing is patience. Your money will grow slowly, but consistently. Don’t panic during market dips—ride them out, and let time work in your favor.
It’s Not About How Much You Start With—It’s About Starting
You don’t need thousands to invest. You just need to take that first step. Starting with $100 might feel small, but it’s the beginning of something bigger. The habit of investing is what builds wealth over time.
And remember, it’s never too late or too early to start. Every dollar counts, and the earlier you begin, the more time your money has to grow.
Final Thoughts: You’ve Got This
The hardest part of investing is getting started. But once you do, you’ll see that it’s not as hard or scary as it seems. Whether you invest in ETFs, fractional shares, or through a robo-advisor, that $100 is the first step toward building your future.
You’re not just investing money—you’re investing in yourself. You’re giving yourself the chance to grow, learn, and build something that lasts. So go ahead, make that first investment today. You’ll thank yourself later.
Start now—because the best time to start investing was yesterday. The next best time is today.
Next Steps:
- Need more guidance? Check out this beginner’s guide to investing from NerdWallet.
- Want more tips? Explore our blog page for more articles on growing your wealth.