Sure you might be thinking that $100 is probably to small to invest but believe me when I say you will need to rethink. If you put in a little patience and discipline, you can grow that small amount of money quickly into a larger amount.
However, the amount you often invest at first is not really what matters when it comes down to it, but it is all about getting started. So without wasting any more time, let us get started with some tested and trusted ways via which you can flip $100 into $1,000.
Table of Contents
What is Investing?
Investing is simply the process of putting money into assets with the expectation of generating a profit over time. These assets can include stocks, bonds, real estate, mutual funds, commodities, or businesses. The goal of investing is to grow wealth, generate passive income, or achieve financial security.
How Investing Works
When you invest, you allocate your money into an asset that has the potential to increase in value or generate income. The returns on an investment can come in different forms:
- Capital Gains: The value of the asset increases, and you sell it for a profit.
- Dividends: Some investments, like stocks, pay regular income to shareholders.
- Interest: Bonds and savings accounts generate income through interest payments.
- Rental Income: Real estate investments can provide income through rent.
ALSO READ: Best Investment Apps For Beginners: How to Start Investing Now
How to Invest 100$ and Grow it
There are numerous ways via which you can invest and grow your 100$ but be careful since there are a lot of con artist out there which might want to scam your money via investment schemes.
1. Buy Fractional Shares of Stock
Putting your money in fractional shares is one way you can invest a little amount of cash. In fractional shares, each share of a company's stock is divided into a "piece" or "slice".
A company is able to issue fractional shares following a stock split, through dividend reinvestment plans (DRIPs) or through other means.
More to purchasing shares, some top online brokerage firms sell customers a percentage of those shares and as a result, investors are able to invest in stocks with high growth potential that are other wise out of reach, like Tesla.
As time goes on, you can buy or sell fractional shares just like any other investments. In order to build wealth in the long term, you can keep on adding fractional shares to your arsenal or you can simply sell all your fractional shares once you are in profit already.
This is an amazing option for investors who wish to diversify their portfolios as much as possible with little amount of money.
2. Invest In Real Estate With Crowd Funding
We all know how buying of properties such as houses can be very expensive and this is actually the main reason why the Real Estate industry has traditionally had a high barrier to entry. For this reason, I often recommend real estate investment trusts (REITs) instead.
With REITs, you got exposure to real estate without requiring owners to own individual properties or deal with grueling landlord duties. As soon as you choose a fund and invest regularly, you can now grow your investment balance based on real estate profits realized over time.
When it comes to REITs, I will recommend you make use of Fundrise since it is my best option too. This company specializes in selling private equity REITs, known as "eREITs" which is trademarked. Another amazing feature with this platform is the fact that you can get started with as small as $10 and your beginner account comes with Auto investment and dividend investment.
3. Open an IRA
A Roth IRA can be set up alongside other retirement accounts like a 401(k) at work. You are able to invest after tax money in this type of account, which will grow tax-free until you are ready to withdraw it. It is good you keep in mind that Roth IRA funds can be withdrawn tax-free once you are at least fifty-nine and half years old.
You can easily open your own Roth IRA account with any online brokerage firm but if you are a high income earner then you will not be eligible due to income caps limit contributions.
There are also limits set to the amount you can contribute according to your age group too.
If you are planning to save money against retirement, then a Roth IRA makes a lot of sense.
4. Invest In Books
When it comes to your personal and professional development, books are a major investment. Purchasing a book for about $15 or even less can actually teach you something new, improve your skills, or help you become more financially literate.
In case you are searching for some recommendations, then do not worry since I have got you covered here too:
- Best Investing Books For Beginners
- A Comprehensive Guide to Must-Read Investing Books
- Best Personal Finance Books To Read
5. Create an Investment Pie With M1 Finance
With M1 Finance, you can create investment "pies". Each pie is made up of slices and the slices represent stocks, ETFs, or even existing portfolios, referred to as Expert pies.
Each pie can hold up to 100 slices per pie, and each account can hold five pies. You can get started immediately with your $100 investment.
6. Work Together As a Team
There are several credit cards, banks and brokerages that offer generous bonuses to new customers but you are only allowed to cash in on theses bonuses once.
However, there is a way around this which is to consider a membership transfer pool that rolls over time. You and your friends can pool your money and open bank accounts with promotional returns like $300 if you open an account and do these five things within the first month.
7. Enroll In a Course or Certification
For less than $100, you can take thousands of online courses, including ones that can expand your know-how in any field. There are several high yield skills you can decide to learn online and once you master a skill you can have an edge on how to start earning from that skill.
There is a possibility of you purchasing online courses and certifications in virtually any industry on different online platforms. I advise you take some time to reflect on what skills can benefit you in your professional and personal lives.
When it comes to enrolling in courses and certifications, Masterclass is my number one option since you are able to enroll in hundreds of courses on this platform for small monthly fee ($15 to $23). You can enjoy unlimited learning for more than six months with a $100 investment.
Every individual wishing to learn a new skill can benefit from online courses and certifications at a low price.
ALSO READ: 15 Effortless Ways to Save Money On Groceries
8. Hire a Mentor Or Coach
Sometimes you can think following online courses and certifications can be enough for your success in a field but having a mentor will always give you a better edge over others. With respect to the coach or mentor's services and experience, their cost will often vary. Some mentors will charge you on hourly basis while others will charge you a flat fee.
9. Make Therapy a Priority
Investing in anything that has to do with your health is one of the best decisions you can ever make since a death body cannot make any investment. When you find yourself suffering from stress, anxiety, or any other mental health problem, therapy can be very helpful.
You can also address your financial issues via Therapy. Below are some types of therapies that can help with money:
- Cognitive-behavioral therapy (CBT), which lets individuals to identify and change negative thought patterns and behaviors in their life.
- Financial Therapy is actually a specialized type of therapy that combines financial and therapeutic aspects.
An hourly therapy session often ranges from around $65 to $250 with respect to the type of therapy you need.
10. Invest In Fun Experiences
It is often said that the key to your happiness is to invest in yourself. Do not be afraid to spend some money on fun experiences with your friends, family and loved ones.
Can I Really Grow $100 to $1000?
Yes of course! There is a high possibility of you growing $100 to $1000 but this requires patience, time and a little bit of risk. Even though there is no guaranteed way to make money, there are some strategies you can use in order to increase the likelihood of success.
Final Thoughts On How to Invest 100 Dollars
With respect to your personal situation and risk tolerance, the best way to invest $100 will vary. Nevertheless there are still some general tips you need to keep in mind:
Start small and invest consistently. When you consistently invest even a small amount of money can grow into something big over time.