How to Invest $100 and Grow it to Six Figures (2024)

You can start investing with only $100 and build considerable wealth. Your investments have the potential to grow to six or even seven figures.

Are you feeling like it’s useless to start saving and investing because you have very little money?

If so, don’t give up just yet. No matter how much money you have, you can build an investment nest egg.

And you can build one that’s big enough to fund your financial dreams. You just have to start by choosing some of the investments we’ll talk about below.

How to Invest $100

Before you start investing, you need to know a bit about the different types of investing. You need to know what you’re getting into before putting your money on the table.

So check out different types of investments. Work to determine which types of investments are most suited to yourrisk tolerance and knowledge base.

Some investments do better over the long term, even though they may seem volatile during the short term.

1. Investing in the Stock Market

It’s smart to check out the fine print when investing with small dollar amounts. Brokers who charge high fees can eat up the profits of beginner investors really fast.

However, beginner investors who start investing with smaller dollar amounts can grow some serious wealth when done right.

You can build wealth through the stock market by purchasing individual stocks, index funds, etc., during the open trading times.

Education is key before you start socking money into the market. Luckily, the Internet has great articles explaining the ins and outs of stock market investing.

You should be cautious, though, and only do your research using credible investment websites.

One of my favoriteinvestment companies is Ally Invest. I like them because theyallow you to open an investing account with no account minimum.

2. Invest in Real Estate

Investing in real estate has long been touted as a smart move, and the wealthiest people frequently use real estate as an investment tool.

You might think investing in real estate isn’t an option when you only have $100 to invest. After all, you can’t buy a rental property or flip a house on a $100 budget. However, some companies cater to those wanting to invest smaller dollar amounts.

For example, Groundfloor offers fractional shares of short-term, high-yield investment properties to accredited and non-accredited investors. All of these can be done on their easy-to-use app.

The company offers venture loans to real estate investors, who then use that money to turn a quick profit on real estate properties.

To date, Groundfloor has achieved average returns of over 10% on their investments, typically held for 6 to 12 months. The minimum investment required by Groundfloor is just $10.

3. Buy Collectibles

Investing in collectibles is also something that was at one time reserved for the wealthiest people. Celebrities and other wealthy people invest in art, cars, sports memorabilia, and more.

Today, the world of fractional share investing has changed all of that, and now, virtually anyone can invest in collectibles. This opportunity is much better than pursuing penny stocks.

While penny stocks may seem appropriate if you have a small amount of money, fractional shares investing in collectibles is a much safer investment opportunity. Penny stocks are more volatile.

Rally Rd is an app that offers fractional shares of collectibles to accredited and non-accredited investors.

When I checked Rally Rd for this article, collectible offerings included a vintage copy of MacWorld signed by Steve Jobs and Steve Wozniak, a 1780 letter penned by George Washington, and more.

And you can buy fractional shares for as little as $3.50 per share (with a $50 minimum investment), depending on the collectible item.

If you’ve always wanted to invest in collectibles, Rally Rd might be a great way to invest $100 using fractional shares.

Related article: 9 Practical Ways To Invest $1,000

4. Open a High Yield Savings Account

A high yield savings account is an option to make money if youare nervous about investing in the stock market. Most banks pay next to nothing for their savings or money market accounts.

However, CIT Bank typically offers a higher rate for their savings account that you will not find at any local bank.

You won’t get rich if you invest $100 or more only in high-yield savings accounts. But you will get paid much more than you would at most traditionalbanks.

Plus, if you are keeping your emergency fund in this type of account, you’ll easily be able to access your funds. It’s preferable to keep an emergency fund in an account you can access without early penalty fees.

5. Peer-to-Peer Lending

Another less traditional investing option is peer-to-peer lending (often called P2P lending). Companies such as Prosper work differently than banks.

With P2P companies, investors choose to lendmoney to those seeking personal loans.

When investors open an account, money is withdrawn for loans as the investor chooses. They lend money to borrowers after reviewing the borrower’s credit and other facts.

When a borrower makes a loan payment, you (the investor) get paid back with interest. This can be a fixed interest rate or a variable one.

It’s important to know that you can lose your cash in this type of investment. If a customer you choose to loan money to decides to stop making payments, you’ll lose your investment.

However, many people invest in this lending format and are happy with the results. Proceed with caution if you choose this route.

Luckily, many of these businesses will let you invest even if your account only has $100 in it.

6. Invest $100 in Index Funds

An Index Fund is a fund designed to mirror financial markets . When you invest in individual stock shares, each basket of shares is at risk if the company you’ve invested in goes under.

When you invest in an index fund, you’re spreading out the risk of investment loss through several companies instead of just one.

Index fund investing was made popular by legendary investor Jack Bogle. Learn more about becoming a Boglehead.

You can buy these funds as an exchange-traded fund or a mutual fund. Just check the expense ratio and compare exchange-traded funds or mutual funds before investing.

Related article: 10 Best Ways To Invest $10,000

7. Investing in a Business

Many people choose to grow their money by investing in a business. Some people choose to invest in an existing business, while others choose to start their own.

Personally, I have found success with owning my own business. Investing in a business can be costly, but even those with only $100 can make money with their investment.

In the case of my company, it costs very little up front to start. This is because the business involved using my skills. I could share my knowledge with people and help them get better rankings on their websites.

And I only needed my knowledge and my laptop. Fortunately, there are many business startups you can do with only $100.

Consider Chris Guillebeau, author of The $100 Startup: Reinvent the Way You Make a Living, Do What You Love and Create a New Future.

8. Investing in Yourself

Another way to consider growing your $100 into a lot more is to invest in yourself.

By that, I mean invest in yourself to learn more about how to grow your skills and eventually your net worth.

You can do this in several ways:

• Purchasing books to learn about investing or business ownership
• Taking online courses to learn a new skill
• Taking in-person classes to learn a new skill
• Joining an investment club or another networking group

The more you learn about money, whether earning, saving or investing, the more tools you have to grow wealth.

In fact, in Thomas Corley’s book called Rich Habits, he shares that 88% of wealthy people read at least 30 minutes every day. And they’re not reading rag mags.

Instead, they’re reading books to educate them on improving their skills. So consider investing your $100 in yourself and see where it leads you.

9. Pay Off Debt

This is one investment I can’t overstate enough. When my wife and I were first married, we were sitting with over $52,000 in consumer debt. It was like a weight hanging over our heads.

Through hard work, we paid off that $52,000 in debt in just 18 months. That one (albeit tedious) step has led to exponential wealth growth for us.

Putting extra money (or $100 per month) toward credit card debt or another type of debt may not seem like it will do much good.

But I promise it will add up because you’ll pay less interest on the debt over time. And once you’re debt-free, you can save money and invest.

10. Invest $100 in Cryptocurrencies

Cryptocurrencies are another investment option you can start with $100 or less. Many crypto exchange sites have minimums between $0 and $10.

And fees, depending on the exchange site, can run from zero to 3% or more.

One thing to note about crypto is that it can be very volatile. Investing in cryptocurrencies is not for the faint of heart.

You’ll want a higher risk tolerance level if you’re going to invest in crypto. Also, be prepared to pay Uncle Sam since any profits you earn are considered taxable income.

Tips for Investing $100

Contributing regularly to your investment portfolio is one of the keys to successfully building wealth. Whether you are utilizing a traditional IRA or a different type of account, contributing is key.

It doesn’t matter if you only contribute a small amount or put money into retirement or savings accounts. Of course, contributing extra money each month helps.

The more money you put into your investment accounts each month, the more compound interest can work to grow your wealth. This will help you work towards financial freedom.

But the habit of making monthly investments is the most important thing. Consider making a habit of contributing to your investment accounts on a regular basis.

Do this by treating your investment contributions like a bill. Talk to your bank or investment firm about setting up an automatic transfer. They’ll transfer money each month from your bank account to your investment account.

This will help you to make regular deposits on the same day every month.

Automatic investments will help you eliminate the need to think about investing each month. It just happens magically for you. But if you leave your investment deposits as a non-automated “choice,” you might not make the investments.

Are You Ready To Invest $100?

As you can see, there are low-risk ways to invest $100. You can put money into a high-yield savings account as a contribution to an emergency fund or pursue higher-risk options like investing in the stock market.

If you start investing with $100 today, your future self will thank you as the account grows, trying to reach the six and seven-digit figure range.

In the process, you’ll create a more secure future for you and your loved ones.