Many people think you need thousands of dollars to start investing, but that’s just not true. Thanks to technology, fractional shares, and beginner-friendly platforms, you can start investing with as little as $100. Whether you want to grow your wealth, save for retirement, or just learn how investing works, this guide will walk you through smart, low-risk ways to get started.

Why Investing is Important (Even With a Small Amount)

If you leave $100 in a savings account, it will barely grow due to low interest rates. But if you invest that same $100, it has the potential to multiply over time. The stock market has historically returned around 7-10% annually—meaning your money can work for you instead of sitting idle.

💡 Example: If you invest $100 today and add just $25 per month, earning an average 8% return, you could have over $39,000 in 30 years.

Now, let’s look at five easy ways to invest your first $100.

1. Buy Fractional Shares of Stocks & ETFs

You don’t need to buy an entire share of expensive stocks like Apple or Tesla. Many platforms let you buy a fraction of a stock (aka “fractional shares”) with as little as $1.

✅ Best Investment for: Beginners who want exposure to big companies with a small budget.

📌 Where to Invest:

• Robinhood (No fees, great for beginners)
• M1 Finance (Automated investing)
• Public.com (Social investing with fractional shares)

2. Invest in Index Funds (The Easiest Option)

If picking individual stocks sounds overwhelming, an index fund is a smarter choice. Index funds are bundles of stocks that track the overall market, making them low-risk and beginner-friendly.

✅ Best Investment for: Long-term investors who want steady growth with minimal effort.

📌 Where to Invest:

• Vanguard (VTI – Total Stock Market Index Fund)
• Fidelity (FXAIX – S&P 500 Index Fund)
• Charles Schwab (SWPPX – S&P 500 Index Fund)

3. Use a Robo-Advisor for Hands-Free Investing

If you don’t want to research stocks or funds, a robo-advisor can handle everything for you. These platforms automatically invest your money based on your goals and risk tolerance.

✅ Best Investment for: People who want a “set-it-and-forget-it” approach.

📌 Where to Invest:

• Betterment (Great for hands-off investing)
• Wealthfront (Automated portfolios with low fees)
• Acorns (Rounds up your spare change & invests it)

4. Buy REITs (Real Estate Investing Without the Hassle)

Want to invest in real estate without buying property? Real Estate Investment Trusts (REITs) let you invest in rental properties, commercial buildings, and hotels with just $100.

✅ Best Investment for: Anyone who wants passive income from real estate.

📌 Where to Invest:

• Fundrise (Invest in private real estate deals)
• Publicly Traded REITs (Buy through Robinhood or M1 Finance)

5. Start Investing in Crypto (But Be Cautious)

If you’re curious about crypto, you can invest small amounts in Bitcoin, Ethereum, or stablecoins. Crypto is more volatile, so it’s best to invest only what you can afford to lose.

✅ Best Investment for: Risk-tolerant investors who want to explore digital assets.

📌 Where to Invest:

• Coinbase (Beginner-friendly)
• Binance.US (Lower fees)
• Kraken (Good security features)

Bonus: Keep Growing Your Investments

Your first $100 is just the beginning! Here’s how to keep growing your portfolio:
✅ Set up automatic contributions ($25+ per month).
✅ Reinvest dividends so your earnings compound.
✅ Diversify across stocks, bonds, and other assets.
✅ Stay consistent and don’t panic during market dips.

Final Thoughts

You don’t need to be rich to start investing. With just $100, you can begin building wealth today. Choose a method that fits your goals, start small, and let your money work for you over time.

🔥 Ready to start investing? Sign up for M1 Finance or Robinhood today and get a free stock!