. . .
You have a crisp, new one hundred-dollar bill in your wallet.
While it's not $1,000,000, $100,000 or $10,000, hey, at least it's something!
Want to know the most difficult part of investing? Starting.
You read that right!
Just starting is rather difficult, and once you accomplish that challenge, investing going forward is pretty easy.
For those of you who are discouraged because you only have a little bit of money to invest – don't fret!
One hundred dollars is a great way to get your foot in the door and start a habit of investing that could very well lead to a bountiful harvest down the road.
It's Not About How Much You Invest, It's About Actually Getting Started. #investnow
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I'll tell you from the start that it isn't easy to find ways to invest just $100 or even how to invest $1,000 dollars. Many brokers have account minimums.
Additionally, sometimes you might find yourself being charged, for example, a $50 annual fee which can cut your account in half. That makes no sense.
However, there are a few ways you can invest $100 dollars and have it be worth your time and effort. I'll show you how.
How to invest 100 dollars like a financial expert:
- Betterment (Robo Advisors)
- Savings Account
- Lending Club
- Ally Invest
- 401k
- Yourself
- Books
- Start a Business
- Prosper
- Stash
- Travel
- Index Funds
- Debt
- Charity
- Thrift Savings Plan
- Roth IRA
- Start a Blog
- Online Courses
- Your Marriage
- Bonus: 6 Investments To Avoid
I also invited a plethora of other financial experts to lend their advice for this article. You'll get a big helping of financial advice along with some unique ideas I didn't even have in mind.
Really, these guys are smart and creative – pay attention to what they have to say! If you are feeling a bit more ambitious, check out a great read on the best way to invest $20,000 dollars.
One step at a time!
INVESTMENTS WORTHY OF YOUR ONE HUNDRED BUCKS
1. Betterment
Betterment, is part of a class of investment adviser that provides portfolio management online without the need for much human interaction, called “robo-advisors”.
Instead of having to sit down with a financial advisor and pay them for their time, or pay them by having fees on your investments, robo-advisors ask you a series of questions and then invest your money automatically, based on your tolerance for risk.
There was a time when you would have to invest $100 per month to start a Betterment account, but they have changed that requirement and you can get started with just your $100 investment.
This opens up diversified investing with a personalized touch to just about anyone. You can learn more about them by looking over this great Betterment Review.
Another company in this category is Acorns, which specializes in micro-investing by rounding up the change on your purchases.
I put my first $100 investment into an Acorns account.
2. Open a Savings Account
Savings accounts are one of the most boring investments around, but they are SUPER safe. The idea isn’t to leave your money here for very long, but to build up your savings until you can get into some higher yielding investments.
While high-interest online savings accounts don't feel “high-interest” when you compare them to other investments, they do get much better interest than the bricks and mortar bank accounts that you find in your local community.
If you don't have at least eight months of emergency savings, it's probably best to start by investing your $100 into a high-yield savings account.
You're going to want liquidity if an emergency arises and, while many of the other types of ways to invest $100 might allow you to pull out your money quickly, there may be some drawbacks like pulling out of the market too early or needing money in the middle of a loan term. A money market account can even come with limited check writing capabilities to make your money accessible at any time.