How to Start Investing with Just $100

Why Start Investing with $100?

Investing, even small amounts, offers several key benefits:

Compound growth: Your money earns returns, which then earn their own returns.
Develop good habits: Regular investing builds discipline.
Learn by doing: Gain experience without risking large sums.
Overcome inertia: Starting small is better than not starting at all.

Did you know? If you invest $100 monthly with a 7% annual return, you could have over $23,000 in 10 years, and nearly $100,000 in 20 years.

Best Ways to Invest $100

Here are the most accessible and effective investment options for beginners starting with $100:

1. Fractional Shares

$Stock market chart showing fractional shares concept$

Many brokerages now allow you to buy fractions of expensive stocks. This means you can invest in companies like Amazon or Google without needing hundreds or thousands for a full share.

Best for: Those who want to invest in specific companies

2. ETFs (Exchange-Traded Funds)

Diversified portfolio represented by ETF concept

ETFs bundle many investments together, giving you instant diversification. Many ETFs trade for under $100, and some brokers offer fractional ETF shares too.

Best for: Diversification with small amounts

3. Robo-Advisors

Digital interface showing robo-advisor platform

Automated investment platforms create and manage a diversified portfolio for you, often with low minimums. Many accept accounts starting at $100 or less.

Best for: Hands-off investors

4. High-Yield Savings Accounts

Piggy bank with percentage sign representing interest

While not technically investing, these accounts offer much better interest than traditional savings. A good place to park money while you learn.

Best for: Absolute beginners or emergency funds

Step-by-Step Guide to Investing Your $100

Step 1: Choose Your Investment Platform

Select a brokerage or investment app that fits your needs. Look for:

No or low account minimums
Fractional share investing
Low or no commission fees
User-friendly interface

Step 2: Decide on Your Investment Strategy

Consider your goals and risk tolerance:

Long-term growth: Stock ETFs or fractional shares
Income: Dividend stocks or bond ETFs
Safety: High-yield savings or money market funds

Pro Tip: As a beginner, consider starting with a broad market ETF that gives you exposure to hundreds of companies with one purchase.

Step 3: Make Your First Investment

Once you've funded your account:

Research your chosen investment
Enter the dollar amount you want to invest ($100)
Review and confirm your order

Step 4: Monitor and Add to Your Investments

The key to success is consistency:

Set up automatic transfers if possible
Aim to invest regularly, even if it's small amounts
Reinvest dividends to accelerate growth

Common Mistakes to Avoid

Warning sign with common investment mistakes listed

Trying to time the market: Focus on time in the market instead.
Investing money you'll need soon: Keep emergency funds separate.
Putting all your money in one stock: Diversify to reduce risk.
Letting fees eat your returns: Choose low-cost investment options.
Checking your investments too often: Investing is a long-term game.

Next Steps After Your First $100

Once you've made your first investment:

Educate yourself: Read books, take courses, follow financial news.
Increase contributions: Try to invest more as your budget allows.
Diversify: Add different types of investments over time.
Review periodically: Check your portfolio every 6-12 months.

Remember: The amount you start with matters less than developing the habit of consistent investing. Many successful investors began with small amounts.