Last Updated on February 22, 2021
A good number of people don’t invest their money because they think it’s too little. However, you don’t need thousands of dollars to execute an investment plan. The truth is, you can invest $100 and turn it into $1000 with one solid idea.
With the wrong attitude, the one-hundred-dollar bill in your wallet can only serve you a few trips to the cinema with some snacks. If you’re one of the people with this mindset, don’t worry! I’m going to show you a few ways to invest 100 dollars and make it worth your time and energy.
Remember that the best time to start investing is when you’re in high school, college, or a graduate in your mid-20s. You don’t want to near the age of retirement without having started to invest. When you begin early, it becomes easier to grow the habit and accumulate more wealth in the future.
11 Proven Ways to Invest 100 Dollars Like a Pro
When it comes to investing, the major obstacle is ever starting. Investing 100 dollars is like a bird learning to fly. You won’t ever learn unless you take your first leap. And who knows, you might be surprised by the results!
If you still don’t see the power of $100, I’ll give you a real example.
An investment of $100 in Microsoft at its initial public offering was worth 0.94 shares. The current number of shares would be over 130 if you invested monthly. And the value comes to around $28,000.
It’s pretty inspiring, right?
Let’s explore the various ways you can invest $100 today and gain profits within a short time.
1. Start a Quick Business.
Many people dream of being bosses with clients and staff members rushing in and out of their offices. What you have to keep in mind is that a formal business requires significant investments. And you rarely get there without starting small and growing gradually.
100 dollars are enough to set up a pop-up store in your area and sell some stuff over a short time. You can buy some products at wholesale prices and resell them in your shop or some random places.
For instance, purchasing ice cream from wholesalers and selling them to people at school or events on a hot day. In this case, you only require some equipment for blending and storing the different flavors. You may put the whole business on sale after making enough profit to venture into something new.
2. Lend Money to Others.
You can pocket tidy returns by lending $100 to other people. Keep in mind that we aren’t talking about friends and relatives. If you need to grow your $100 investment fast, consider peer-to-peer lending.
Prosper, Lending Club, and Peerform are some top P2P lending sites where small investors can put their money to work. This type of lending isn’t going away any time soon since more sites continue to pop up every year. Each platform has its own estimated return on investment and risk level.
For instance, Prosper allows you to invest as low as $25. The company has 7 categories of different risk levels and estimated returns. This means that your $100 can be spread among 4 different categories to manage the risks and get higher return rates.
3. Use Micro-Investing Apps.
There are several apps to grow your money through investing. You don’t have to pay someone to invest for you while you can download a micro-investment app and control your money from the beginning to the end.
Some leading micro-investment apps in the industry are:
- Acorns – It’s good for beginners and only requires $5 to start investing.
- Stash– A perfect online financial service if you’re starting out since it has a $0 account minimum.
- Wealth Simple – This is another affordable financial service with no minimum investment.
You only have to pick some companies you want to invest in, assess the risks, and find the winner. Most of the apps have experienced traders who can guide you on how to go about your investment. The monthly fees vary from one investment service to another.
Micro investments are suitable for getting you started and gaining hands-on experience. After a while, you can scale up your investments and go for bigger ventures.
4. Invest 100 Dollars in Yourself.
You might be wondering how this can turn $100 into $1000. Self-investment is essential for acquiring knowledge and skills that shape your financial future. If you intend to use some skill to make money, paying to learn it or update your knowledge base is your best bet.
The Internet is full of information that can help you accomplish anything you want in business. But it can be challenging to filter out outdated information and know what really works at the moment. Opting for paid sources simplifies the job for you since you interact with experts directly.
You may choose to take a class, hire a business coach, or attend a networking event. All these can help you develop new expertise and enhance your professional marketability. After that, you can easily start a successful business or get hired for a high-paying gig.
5. Create a Blog.
Blogging is a fun activity that can also be done to generate income online. You make money through ads, affiliate links, and sponsored posts. If you own a product or service, blogging can open new doors for your business.
You only make money blogging if you treat it like a business right from the start. This means that you must invest your time, efforts, and money into it. 100 dollars are enough to get a unique domain name, premium theme, and a drag-and-drop website builder for your blog.
The best part about blogging is that you can do it while still handling your main job or studies. Even if you have the least technical skills, you can gather expertise and get better along the way. You may opt to become a full-time blogger once you start making some decent revenue out of it.
6. Treat People to Something.
Is it possible to make more money by buying treats for other people? Yes, it is!
The thing is, you only want to buy something for someone you can learn from. You can speed up your learning through other people’s experiences. It could be an influencer that you know, a retired financial advisor, or a successful person living next door.
Most of them want to give back to society. And you can connect with them by inviting them for coffee or a meal. If you are prepared enough, you can extract a lot of information from them and even find connections for your career or skills.
7. Invest 100 Dollars in Partial Shares of Stocks.
Buying shares is a great way to turn your money into $1000 over some time. You don’t need a big bank account balance to invest in stocks.
The only thing you need is a company that you can trust with your money. Most of the time, it’s one you have used several times for any of your needs.
Big international companies might require huge sums of cash when it comes to investing in them. But you can find a local brand that looks promising to buy shares from. Perform some background checks to be sure you’re making the right investment.
Some sectors in which to invest include healthcare, communication services, and even energy. People will always need these services. And that’s one thing to use as the basis for your stock investment research.
8. Spend on Online Courses.
A cheaper alternative to a master’s degree is an online course. There are tons of courses on the Internet spread over a variety of industries. Some are useful for your career, while others show you how to supplement your monthly income.
If you choose to take an online course that teaches you to make money online, be sure to confirm that the ‘guru’ behind the system has really tried and tested it. Another thing to look at is whether or not there is a money-back guarantee. This approach saves you from losing money to something that doesn’t work for you.
Here are a few platforms to learn about new skills and personal growth:
- Masterclass – It has some of the best instructors in the world sharing their mastery in various fields.
- Udemy – An online course platform with thousands of free courses and paid ones starting from $12.99.
- Lynda – The site has video courses for achieving personal and professional goals.
With $100, you can be part of one or two classes run by field experts. Whatever you learn can make you money once you start applying the tips.
9. Open an IRA.
Contributing to an IRA is an intelligent way to invest 100 dollars if your employer doesn’t offer sponsored retirement plans such as 401k. The good thing is that Roth IRA has no minimum contribution, according to IRS rules. Adding $100 to the plan each month is a commendable habit for any saver.
You can open a Roth IRA with your bank by simply filling out a form online. If your bank doesn’t open such accounts, go with a brokerage firm. However, you should check the cost of getting started with any broker.
The best rates for Roth IRAs are on Ally. If you need an in-depth analysis of how you’re fairing on with your investments, go for Merrill Edge. On the other hand, Fidelity is the best for young investors.
10. Buy Some Books.
With $100, you can buy a book or two along the lines of changing your mindset, making money online, or money management. These self-help books can give you new paths to follow and attain financial independence within a short time.
On that note, one of my favorite investing books is Rich Dad Poor Dad by Robert Kiyosaki. It talks about how his father, and that of his best friend, influenced his ideas about money and investing. Check it out if you want to learn some powerful lessons on how to escape the rat race and make money your way.
You may also buy books based on your career and improve your marketability in the field. Be sure to purchase newer books or updated versions to find information that is applicable in this day and age. Do some review-based research before starting out with any reading material.
Reading for pleasure is also beneficial to your well-being. Now, head on to Amazon, search for a book, check the ratings, and make an order!
11. Pay Off Debt.
Yes, paying off your debt is another great way to invest 100 dollars. Having debt can weigh you down and slow your pace towards financial freedom. The only way to deal with loans is to settle them.
Paying $100 is much better than waiting for high-interest rates to take a toll on you. Eventually, you will clear it up and start investing your money in something else.
As shown by Well Kept Wallet, getting rid of debt is a relief that can lead to exponential wealth growth. You won’t stress over pending payments that need clearance. In this peaceful state of mind, it’s easier to generate new ideas, craft big plans, and experience financial growth.
Where You Shouldn’t Invest 100 dollars
There are a few investments to avoid if you don’t want to risk losing your money. I’ll highlight them below:
While they may not be illegal, get-rich-quick schemes can easily bring you to think that you’ll be a millionaire within a day or week. The truth is that there is no money anywhere in the world to be harvested without putting in some work.
Most of these schemes are too risky and show signs of being a scam. Some may be profitable, but the best way to make money is through your patience and consistency.
Gambling is fun until it starts becoming an addiction. You can easily lose control over your hard-earned money and end up with nothing at all. At such a point, you’ll be too stressed to accomplish your goals in other areas of life.
Of course, there are lots of success stories on gambling. It’s your choice if you want to rely on luck. But I’d advise you not to spend your last $100 on casino games or any other type of gambling.
Any Investment You Don’t Understand
One of the easiest ways to lose money is by putting it where you don’t understand. The risk is similar to that of lending your money to a stranger. That’s only if not worse!
It’s best to learn about any investment first and develop some interest in it. Always seek professional advice about any venture new to you. If there are risks, you’ll know each of them and stay prepared.
Get Started With Investing
You’ll never know what you could achieve with a single $100 investment until you do it. If you don’t know the exact investment you need, do some soul searching or ask someone close to you.
For me, spinning the wheel is also a thing when I’m completely torn between options.
It’s never too late. You just have to start!