This article discusses the 14 ways that you can invest $100 in 2021. It includes investing in cryptocurrency, real estate, stocks, and more.
The invest $100 make $1,000 a day is a way to invest $100 in 2021. It is possible to get 1,000% return on investment if the person invests for just one year.
Do you have an extra $100 lying around? Awesome! That means you may begin investing right now.
While we typically associate investors with Wall Street types with a lot of cash on hand, the truth is that you can start investing with as little or as much as you like.
You’re in a great position to start putting your money to work for you if you just have $100.
We’re here to assist you out with your first hundred dollars, even if it seems like you’re sailing into unknown seas. We’ll teach you how to invest $100 with reasonable simplicity in this post.
Following that, we’ll go through 14 various methods to invest your money and provide some advice on which ones to avoid. You’ll have more confidence in your new investment plan this way.
Investing $100 in 14 Different Ways
Investing your first $100 may be intimidating, but there are a lot of wonderful things you can do with it. Here are 14 ways to invest $100, ranging from establishing a retirement fund to making your first stock trades:
1. Eliminate Consumer Debt
We understand that paying off debt may not seem to be an investment.
If, on the other hand, you’re paying 22 percent interest on your credit card bill, paying off that debt is a better investment than investing in the stock market.
If you owe $1,000 on your credit cards and are just making minimum payments, you’ll be paying it off for the next ten years. Soon enough, you’ll be paying interest on your debt instead of the money you originally put on your card—yikes!
What is the moral of the story? Paying off your credit card debt should be at the top of your priority list when it comes to investing. After you’ve paid off your debt, you’re ready to consider investing in the stock market.
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2. Create an emergency savings account.
Putting money in a savings account, like paying off debt, may not seem to be an investment. Having enough money in the bank to cover three to nine months’ worth of expenditures in an emergency, on the other hand, is investing—simply it’s investing in yourself rather than stocks.
In the case of an emergency, not having money put aside in an emergency fund may be troublesome.
Four out of ten Americans, according to the Federal Reserve, do not have enough funds to cover a $400 emergency expenditure. As a consequence, many individuals get trapped in a cycle of consumer debt, requiring them to use high-interest credit cards to cover unforeseen expenses.
The answer to this problem is to always have an emergency money on hand.
If you have $100 to spare, invest it in a high-interest savings account with Axos Bank, Discover Bank, or Synchrony Bank, which are all FDIC-insured. You never know, that $100 investment today may end up paying you big time later.
3. Use a Micro Investing App to make a little investment.
We know what you’re thinking: Can I invest if I’m on a limited budget?
While investment has historically been the domain of the affluent, micro-investing applications such as Acorns, Qapital, and Digit have made it possible for anybody to invest with only a few dollars.
Here’s how it works: If you have $100, you can open an account with any of these micro-investing apps, and they’ll build a portfolio customized to your requirements. Then, to assist you increase your assets over time, you may set up automatic investments in your account.
Even if you can’t commit to spending $100 every month, micro-investment applications such as Acorns and Digit allow you to invest on a frequent basis.
That’s because most of them let you to turn on a “round-ups” function, which automatically invests leftover change from any debit card transactions. Alternatively, certain applications, such as Qapital, enable you to set up automated investments whenever you complete a specific activity, such as reaching a Fitbit fitness target.
As a consequence, you may utilize your $100 to get a head start on your investment plan by downloading a micro-investing app.
4. Invest in a Company’s Fractional Shares
If you’re new to stock investing, it’s generally a good idea to start with a strong portfolio of big, well-known businesses.
A single share in some of these blue-chip firms, such as Amazon and Google, may, however, cost hundreds, if not thousands of dollars. That fact may be discouraging for novice investors, particularly when the cost of a single share exceeds the amount of money available.
Fortunately, there is a solution to this issue in the form of fractional stock investment.
You may buy fractions of a single share via brokerages like Public.com and SoFi Invest.
For example, if you want to purchase shares in five different businesses but can’t afford to buy all of them completely, fractional shares investment allows you to spend $20 in each company. If you have additional money to invest later, you may either purchase more slices of your current equities or invest in new businesses.
As a result, purchasing fractional shares may be a fantastic way to put your $100 to work while also diversifying your portfolio. Get a great piece if you can’t afford the entire pizza.
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5. Use ETFs to invest in index funds.
Purchasing stocks may be a lucrative investing strategy, but it is also a high-risk endeavor. Choosing the right stocks to invest in may be difficult if you’re new to investing or still learning the ins and outs of market research. As a consequence, investing in index funds through ETFs is often a wise decision.
ETFs, or exchange-traded funds, are financial vehicles that pool a variety of assets, such as stocks and bonds. You may then purchase ETF shares via a brokerage, such as M1 Finance, just as you would a stock.
A stake of an ETF, on the other hand, offers greater intrinsic diversity than a single stock. Because an ETF is made up of hundreds of different underlying assets, you can get exposure to a far broader variety of sectors than you could with a single stock.
Furthermore, certain ETFs, such as the S&P 500, are intended to follow market indices. Index funds, or exchange-traded funds, are a low-cost method to get exposure to the majority of the stock market.
Of course, much like stocks, ETF shares may become expensive. That’s why using a brokerage like M1 Finance, which enables you to purchase fractional ETF shares, is advantageous. You may use ETFs to diversify your portfolio with relative simplicity if you do it this way.
6. Use a Robo-Advisor to invest.
If you want to see excellent returns on your money, investing in stocks and ETFs typically requires a lot of study and analysis. So, if you don’t have a lot of spare time to devote to study, investing may seem like a little too much for you.
The good news is that you don’t need to do market research to invest your $100. You may put your investments on auto-pilot by establishing an account with a robo-advisor as you go about your daily routine.
If you’re new to investing with a robo-advisor, Betterment may be a good place to start. Betterment is the market leader in low-cost investing, having been one of the pioneers in robo-advising.
You may establish an account with the company for as little as $1 and start putting your money to work right away. Then you’ll provide Betterment some details about your financial objectives and risk tolerance so that the brokerage can tailor a portfolio to your requirements.
After you’ve set up your account, you can sit back and relax as Betterment handles your money. That’s all there is to it.
7. Put money into your 401(k) plan (k)
Is your company providing a 401(k) retirement plan? Take advantage of your good fortune. Because a 401(k) retirement plan is such a strong savings vehicle, it should be at the top of your choice of places to put your $100.
That’s because any money you put into your retirement plan (up to the yearly IRS limit) may be deducted from your income when you file your taxes, lowering your tax burden. Oh, and if your company matches your 401(k) contributions, you can easily convert $100 into $200 in seconds.
Keeping this in mind, maintaining a 401(k) may be a pain. As a result, utilizing an investment tool like Blooom to keep track of your 401(k) and even IRAs may be beneficial.
Blooom makes it simple to automate your investments by giving you access to automated investing and portfolio rebalancing on a regular basis. If you have any concerns about your investment plan, the business also provides access to financial advisers, making it a fantastic choice for both novice and seasoned investors.
8. Open an Individual Retirement Account (IRA).
Many investors choose to establish an IRA (individual retirement account) with their $100, regardless of whether or not they have a 401(k) plan at work.
IRAs are similar to 401(k)s in that they are retirement funds. As a result, they’re an excellent choice for long-term investors. Plus, virtually any US citizen under the age of 70 with taxable earned income, even if they have a 401(k), may establish and contribute to an IRA (k).
Furthermore, putting $100 into a conventional IRA and investing it may help you save money on taxes. If you qualify for a Roth IRA, your $100 investment may grow tax-free until you retire, at which time you can receive tax-free distributions on your profits.
So, if you don’t already have one, an IRA account is something you should consider opening as soon as possible. If you do have an IRA, contributing $100 to it may be a great method to save for the future.
9. Put money into books.
Using your $100 to purchase some high-quality non-fiction books is a method worth exploring, even if it isn’t a conventional investment like the stock market.
Even if you don’t consider yourself a bookworm, it’s difficult to deny that reading a fantastic book may transform your life. Using your $100 to buy some important books may help you reflect on your own life as you strive to become a better person.
Alternatively, if you want to learn more about personal finance, business, or entrepreneurship, purchasing well-reviewed books on the subject may be a great option. You never know, what you read in a book may just provide you with the motivation or knowledge you need to invest in yourself and your future. Here are some excellent books to read for less than $100:
- The Discerning Investor (Investing)
- Father of the Rich, Father of the Poor (Investing)
- The Little Book of Common Sense Investing is a book that explains how to invest in a way that makes sense (Investing)
- The Rental Property Investing Book (Real Estate Investing)
- Warren Buffett’s Essays: Corporate America’s Lessons (Investing)
- A Stroll Down Wall Street at Random (Investing)
- On Wall Street, one step ahead (Investing)
- Life and Work Principles (Investing)
- The Startup for $100 (Entrepreneurship)
- The Workweek of 4 Hours (Entrepreneurship)
- Grow Rich through Thinking (Entrepreneurship)
- How to Make Friends and Persuade Others (Entrepreneurship)
- From 0 to 1 (Entrepreneurship)
- The Difficulty of Difficult Situations (Entrepreneurship)
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10. Begin a Side Business
If you’re searching for a way to supplement your income, investing your $100 in a new side business is a great way to go.
There are hundreds of various side jobs you may perform from the comfort of your own home, depending on your interests. There are lots of excellent side hustles to explore, whether you want to be a blogger, freelance writer, virtual assistant, or part-time accountant.
You may use your $100 to create a website for your new company, buy materials, or apply for a state business license. It may seem to be a modest initial commitment, but investing that money today in your new job may lead to a stable, successful career in no time.
11. Purchase a Course
It’s easy to dismiss the ancient saying that “knowledge is power.” However, there are many advantages to investing in your education and learning.
Even if education wasn’t your thing, there’s almost certainly a subject or sector that you’d like. Using your $100 to pay for an online course or a community college class is a significant investment in your happiness, whether you want to learn more about a more technical topic like finance or start a new interest like beekeeping.
Alternatively, if you believe it’s time to change professions, investing in an introductory coding course or nursing school requirements may help you figure out which career path is right for you.
Peer-to-Peer Lending (P2P) is a kind of peer-to-peer lending.
Peer-to-peer (P2P) financing is all the rage these days, and for good reason: not everyone can get a loan when they need it. This may put individuals in tough financial circumstances, forcing them to do things they’d prefer not do, such as charging a large emergency cost to a high-interest credit card.
As a result, peer-to-peer lending allows you to help individuals in your community who are in need. You may also be able to offer loans to up-and-coming companies that are unable to get conventional funding.
You may invest as little as $25 in someone else’s debt on sites like Prosper and Lending Club. This implies that your $100 may be used to a number of loans, reducing your financial risk while also earning you some money.
13. Make an investment in your health.
We’ve previously discussed the advantages of investing in your own education and learning via books and classes. You might, however, put money into your health.
Using your $100 to pay for a gym membership, yoga lessons, or a food plan program may be a great way to stretch your dollar while also improving your health.
Additionally, keeping active and eating properly may help you save money. A number of studies have shown a link between greater levels of physical exercise and reduced healthcare expenditures. That implies that spending $100 on your health and well-being may be beneficial to both your health and your pocketbook.
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14. Make Friendships a Priority
Finally, friendships are always worth investing on. Our buddies are constantly at our sides, through thick and thin. So, by investing your $100 in your friends, you can show them how much you value their presence in your life.
There are many excellent alternatives for investing in your friendships, depending on your circumstances. A thoughtful present, as well as utilizing that money to plan a future vacation or weekend break, is always a good idea.
If you and your pals are separated by physical distance, try organizing a virtual movie and takeout night as a group. Choose a date, a movie, and a food delivery service to bring a delicious takeaway supper to their door.
You may not remember the food you ate or the movies you watched in a few years, but your friends will remember that you cared enough about your connection to invest in it.
These “Investments” Should Be Avoided
We’ve included 14 different methods to invest $100 in this post. However, since all of these investment choices require time to develop and thrive, we often hear from people who attempt to find other investments instead.
Because we want to help you get the most of your money, here are some less-than-ideal investment choices to avoid with your $100:
Investing in Penny Stocks
To many investors, penny stocks seem to be an appealing prospect: why would you spend $100 for 10% of a company worth $1000 when you could purchase 100 shares of a stock worth $1?
Penny stocks, unfortunately, are one of those things that seem too good to be true. While it’s tempting to be seduced by the prospect of a penny company becoming the next Amazon, these massive gains are the exception rather than the norm.
In fact, penny stocks are nearly always a very risky investment, putting you at danger of significant losses at any time. As a result, purchasing fractional shares of established businesses is frequently preferable than buying huge quantities of penny stocks.
Gambling is an appealing method to rapidly earn a lot of money. However, it is not a wise use of your $100.
Sure, purchasing a bunch of lottery tickets or playing the slots at a local casino may net you some cash, but it’s not a sure thing.
Investing in the stock market, on the other hand, is not without danger, and you may lose money. However, investing allows you to build a diversified portfolio that may act as a safety net during market downturns. Gambling, on the other hand, may make your money disappear in an instant with a single throw of the dice.
Schemes to Make Money Quickly
The sound of get-rich-quick schemes is enticing. You put down a little sum of money up front, and presto! You get wealthy right now.
If these scams seem to be too good to be true, they are. Except for the individual attempting to sell you on their phony program, get-rich-quick scams seldom work for anybody. When the plan fails (as it always does), the salesman will benefit from your payment, while you will be left with a negative balance in your bank account.
Consider this: If it were really feasible to become a billionaire overnight, we’d all be millionaires.
Building financial security is a long-term process that begins with modest, consistent investments in a high-quality, well-diversified portfolio. In the meanwhile, a get-rich-quick plan will only lead to disappointment down the road.
There are many great methods to invest $100, whether you want to get into the stock market or acquire new skills via an online course. Investing your hundred dollars today, with a little forethought and preparation, may set you up for financial security or personal fulfillment down the road.
The how to turn $100 into $1,000 in stocks is a way to invest money. There are 14 ways to do it.
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