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September 14, 2021

How to Invest $100… and Make Money

Investing a lot of money might not be something you can do right away, but there are certainly some ways you can invest $100 and make that money grow.

In this article, we are going to show you six of the easiest ways you can utilize right away, so keep reading to find out how to get started with investing a small amount of money and make it work for you.

What Are Your Options When Investing $100?

The following are some investment options for you to get started. We’ll review a few methods that are non-stock related first, before moving on to the more technical stuff.

Start a Side Hustle

Nowadays, many people choose to start working on their own by creating small side businesses, such as dropshipping companies within eCommerce sites such Amazon, eBay, Walmart and others.

These sites allow you to list your products while also fulfilling the orders for you. Finding the right products to sell is an important matter but if you know that a product is trending, this is a very low-cost business model you can work with. This allows anyone to start working on their generating an income by investing only $100 dollars to get the ball rolling.

Another way to invest $100 and make money is by starting a YouTube channel on a specific topic. By investing in a good-quality webcam and microphone, you can start recording videos and monetizing them in various ways. 

Choosing the right topic for your channel is important, especially if you’re going for a competitive niche. However, if you create good content that resonates with your audience, you will get paid through advertisement revenue and affiliate recommendations you will make during the videos you create.

The following are a couple of other options to consider:

  • Creating your own podcast
  • Blogging

All these kinds of businesses require only an initial investment of 100 dollars, as they all rely on using readily available tools, which typically don’t need any additional costs on your part. 

The great thing about the above is that the content you create can also be reused for the various aspects mentioned. This means that you only need to create the content once and then adjust it based on the channel you’re using it for.

Image Credit: http://passiveincomemd.com

You can also easily sell your previous products that are just lying around in the house or old clothes you bought but never wore, on eBay or Amazon for a quick profit. You can even sell higher-priced items on such websites with the same initial startup cost. When it comes to dropshipping high-ticket items, one of the advantages of this model is that you don’t need to put much time and effort into it, as well as there being almost no costs involved. This makes such a side hustle one of the perfect options for those looking for an easy way to invest $100 dollars. Check out this article on Alibaba shipping costs if you’d like to learn more about the costs involved in such a business model.

Enroll in a Course or Certification

One of the best ways to invest 100 dollars is to enroll in a course or a certification. 

There are many online courses you can choose from. For example, if you’re really into photography and want to learn everything there is to know about it, then why not spend some money on an online course that teaches you all the basics of becoming a better photographer?

Keep in mind that since these courses aren’t free, $100 might not give you access to the exact course you want, and you might need to eventually invest more in more advanced courses. This depends highly on the information you’re after, so do your research before making a final decision. 

Real Estate

While you won’t be able to buy any property for this amount of money, there are still ways you can use the real estate craze in a way to make your money work for you. 

You can start small by buying used furniture at low costs and then selling it for higher prices on Craigslist or other similar websites. There are plenty of tutorials out there that show how to find such deals, so we recommend you check them out if you’re interested in becoming a reseller

You can also find manufacturers that offer high-quality products at great prices, start out small and build upon that.

Image Credit: http://forbes.com

Another way to invest $100 in real estate is by using this money to network and connect landlords and tenants. Once a connection is made, you can then ask for a kickback for connecting these two people. 

This is a great way to start making profits without having to put in much time and money — it’s also a great way to hone your social skills. These skills will come in handy in many other situations you find yourself in.

Fractional Shares

For those of you who don’t know, a fractional share is a type of investment model where you buy shares in large companies, but only a fraction of it. Generally speaking, investing in this way allows anyone to start purchasing stocks previously out of their reach due to the high amounts required.

Fractional Shares are great for beginners, as they allow you to invest small amounts of money and then keep track of the progress made by that particular company, allowing you to reinvest the dividends paid at a later date (which is something that companies generally do).

For example, if we take Apple as an example stock, let’s assume that one share costs around $170. However, by using fractional shares, you can just buy $100 worth of it and then reinvest dividends or sell the fractions you don’t want or need.

Making this type of investment will allow anyone to enjoy the benefits big investors get at a low cost, allowing for your initial $100 to grow.

Open a Savings Account

Opening up a savings account is one of the easiest things that you’ll ever do. Also, getting started with only $100 should never be an issue. 

The bank you choose is not going to make a big difference as most of them offer accounts with fees that don’t exceed $10 per month, which means that it will take only a few months for you to start making a profit — even if it’s a small one — through interest.

Also, if you’re looking to invest your money in stocks, opening up a savings account is the first step, as many people use these accounts as their “temporary storage place” until they end up investing their money into stocks or other types of investments.

To open up an account, all you have to do is go down to your local bank and fill out a couple of forms for them to approve your bank account so you can get started right away. With some banks, you can even do this online from the comfort of your own home.

Invest in Bonds

Another great option if you’re looking to invest your money without having to worry too much about losing a big share of it, is investing in bonds through companies such as Vanguard, Fidelity or T Rowe Price.

The best thing about these investment vehicles is that they offer a stable way for gaining money over time, either by investing directly into their funds (where these companies will be making decisions about how and where the money should be invested) or opting for managed accounts.

The latter means that instead of having someone manage your portfolio for you, you will manage the account yourself but have the help of a professional when it comes to these kinds of decisions.

Image Credit: http://investopedia.com

Selection is very important, so you have to make sure that the company you choose has been around for a while and provides good returns.

Just remember that if you’re planning on withdrawing money from this account before a specific date, then there will be early withdrawal fees incurred, so try to avoid doing that unless it is really necessary.

P2P Lending Sites

Peer-to-peer lending sites such as Prosper or Lending Club are another great way of making some extra money with an initial investment of $100. This is great news because these sites are usually riskier than investing in bonds or savings accounts. 

However, this method offers the biggest returns out of all of them, which is why people are so excited about it.

This model works by having a bunch of different lenders contribute money into one pool, which is then given to borrowers looking for personal loans. These people will then pay back the money over time with interest rates being set in advance.

Image Credit: http://mangosoft.tech

The advantage of this model is that you can increase your gains simply by joining more lending pools and diversifying your portfolio. However, there are also risks involved when deciding to invest through these kinds of sites, as you could end up losing some or even all of your investment if the borrower defaults on their loan payment. Unfortunately, this happens much more often than most people think.

Stocks/Mutual Funds

Next, let’s talk about investing in stocks and mutual funds. If you’re ready for something riskier, then this might be exactly what you’ve been looking for. 

However, keep in mind that while high returns do come with higher risk, there are ways of minimizing these risks, including diversifying your portfolio (which means putting all of the eggs in multiple baskets) and choosing a company that has been around for years and isn’t going to collapse overnight.

One of the best investments you can make if you want to grow your $100 investment into something more is investing in technology companies such as Apple, Google or Facebook. These companies tend to offer very consistent returns over time, so again, it’s all about choosing the right ones and doing your research before committing your money. 

Invest in Cryptocurrency

Investing in cryptocurrencies and/or digital currencies is a viable alternative investment for everyone who does not want to take the traditional way of investing money. This means that when investing in cryptocurrencies you need to keep in mind that it might be considered as an alternative investment that brings with it its own risks and rewards. 

You might wonder how the value of a cryptocurrency is determined since there’s no actual asset involved. To establish the value of a cryptocurrency, its price is set according to a variety of factors, one of which is the popularity of the specific coin on the market. 

This means that some currencies might be very volatile — based on what’s happening at that particular moment. 

Image Credit: http://investorjunkie.com

When it comes to investing in crypto, you’ll need a digital wallet; this gives you the power to store cryptocurrencies online safely, With that said, it might be slightly more complicated than just opening an online account with some popular exchange platform, since most of them require that you download additional software first to activate your wallet and start using it.

Penny Stocks

If you’re looking for a quick way to turn your 100 dollars into 300 or 500, then investing in penny stocks might be exactly what you’ve been searching for.

Penny stocks are also considered speculative investments, since one can trade them with a minimum capital requirement, which means that you can invest your $100 without having to break the bank.

Image Credit: http://businessinsider.com

However, keep in mind that while trading penny stocks is relatively easy, it doesn’t mean it’s always safe because if you do not have any experience trading these kinds of risky investments, there are serious chances for this kind of money to just disappear overnight.

For example, let’s say that you invest all of your $100 into one company, and the next day, they completely crash. This would result in a significant loss for you. On the other hand, if you invest $100 into 10 different companies and a few crash while others get better, then your loss would be spread out among several different transactions. Diversification is important in this situation.

Invest in Individual Stocks

A brokerage account with an investment firm is what you need to buy individual stocks. In some cases, even with a small amount of money, you can open an account and start investing immediately. It’s not only easy but also very inexpensive.

You have full freedom of choosing any stock to invest in. But, remember that the riskier a stock investment is, the higher your expected return will be if everything goes well.

But, how do you make the right investment choice? That’s a difficult and complex question, and there is no answer for it since it all depends on a variety of factors. 

On the plus side, small trades allow you to try out your strategies before risking large amounts of money. This will help you avoid unpleasant surprises later on. 

Furthermore, it allows you time to obtain information about any stock before investing in it, which is an important factor as well.

Your risk tolerance must be taken into account, as well as your investment time horizon. The bigger the risk, the bigger the reward, but also the potential downfall that comes with it.

Other Things to Consider Before Choosing the Right Investment

High-Yield Savings Account

A high-yield savings account is one of the best investments to make with your 100 dollars since it has a minimal risk of loss and provides good returns.

The interest rates on these accounts will not be as high as those on stocks, but they are more secure, and the money is available at any time without having to pay penalties or fees. 

You can open such an account even with 10 dollars, and this makes it possible for you to keep all your money in one simple and easily accessible location. High-yield savings accounts can typically be used as regular checking accounts whenever necessary.

Image Credit: http://chime.com

Keep in mind that it’s always possible to lose money with this type of investment and that the interest rate (high interest or a lower one) is determined by your financial institution.

Account Minimum and Fees

You need to know the minimum amount of money that is required to open an account with a certain institution, as well as any maintenance fees or other expenses. You are not obligated to invest 100 dollars at once — you can make smaller investments over time based on your budget.

Some institutions will allow for regular automatic withdrawals from your checking account to add to your investment account. This is a very efficient way to grow your savings steadily over the long term.

For you not to have any regrets later on, always ask about all the fees and penalties involved whenever you open an account or make a transaction. You need to be sure that if you need some money from your account, you can access it without any delays or unexpected expenses.

Beginner Investors

If you are looking to begin investing, it might be better for you to start with low-risk investments such as cash and high-yield savings accounts. This way, your hundred dollars will grow gradually and, at the same time, you will learn about investing and the stock market.

You can also read personal finance advice columns or books in order not to make crucial mistakes, such as investing more money than you can afford to lose.

And if you fail — don’t worry, it’s not the end of the world. It just means that you need more time before investing more money, or that you should take some lessons first to learn how big markets work and what stock trading is all about.

Employer-Sponsored Retirement Plan

If you receive access to an employer-sponsored retirement account plan, such as a 401(k), and the minimum contribution level is only 3 percent, then it may be wiser for you to invest your first hundred dollars in this.

After all, growing 100 dollars to 300 or 400 within several years will not be so difficult with such a low contribution level.

You may want to check with your employer about matching contributions since they can double your savings. Most people don’t think of investing their first hundred dollars at all because it seems too low. However, this is something that is worth exploring. 

Investing your 100 dollars only once may not be enough for a good lifestyle later on, or to retire comfortably. However, it will help you learn which types of investments are suitable for you, and how you can benefit from them.

Don’t forget that investing is not just high risk — it’s also about patience. Sometimes, your money will grow very quickly, but there will be other times when nothing happens at all for months — or even years.

Getting Rid of Debt

Credit card debt can be a huge financial burden, and the best way to get rid of it is by investing your 100 dollar budget to start getting rid of it. Paying down your debt as quickly as you can is, in itself, one of the best investments you can make. You’ll also learn to save money as you go along.

In addition, you should do everything in your power to avoid accumulating more credit card debt once you have paid off some of it — this means not making new purchases on the same card that helped you pay off a balance.

Image Credit: http://debt.com

What About Index Funds?

Index funds are a type of mutual fund that primarily invests in the stock market and bond market indexes.

This is an efficient way to invest your hundred dollars, but it’s also very competitive and not for everyone. There are thousands of different funds out there, and only a few will be able to beat the index, meaning that you should do some research beforehand.

The advantage of index funds is that they charge much lower fees than regular mutual funds. For example, some companies allow investors to purchase them commission-free. On the other hand, if you purchase an index fund without looking into it properly, then there is a chance that you will pay more for this than with other types of investments — or simply lose money.

All in all, investing your first hundred dollars will give you valuable experience, but only if you take the time to start learning more about what you are doing.

The Importance of Regular Contributions

Even though you can get started with $100, regular contributions might be needed as time goes by. By continuing to invest this amount regularly, you will build up a valuable portfolio over time.

It doesn’t matter if the market goes up or down — your 100 dollars will always be invested and thus growing — as long as you make the right decisions. You can even set up an automatic deposit so that it’ll happen without any effort on your part. This is a great way to ensure that you invest every month instead of relying on motivation.

This concept is one that is found in any investment and is the foundation of the best lifestyle business ideas — just like a growing plant, they all require patience and regular contributions.

Image Credit: http://money.usnews.com

In addition, you can’t expect to become a millionaire overnight by investing $100, but as long as you keep adding money regularly and investing it wisely, then you should be able to build up a sizable portfolio in the next couple of years.

Other Considerations

As you saw above, there are many investment opportunities if you have a little know-how of what to do with little money to make it grow. Like with any new skill, it’s important to figure out what works and what doesn’t. A minimum investment fee is always one thing to keep in mind, and it is usually listed as a disclaimer somewhere along the bottom of the page — look out for that.

Also, be careful of anything that promises no fees — if it sounds too good to be true, it usually is. Online savings accounts are notorious for this — after all, no one can be called Robinhood in this day and age. 

Next, let’s briefly speak about investing apps. Be very careful when using these as you still need to have the right knowledge to turn spare change into something of value. Also, diversification is key with such investment apps. 

Finally, also remember that having an emergency fund is important — so keep something tucked away for a rainy day. 

How to Invest 100 and Make Money – FAQ

What is the best investment for me?

There are many different types of investments out there, but not all of them are suitable for everyone. For example, if you want to avoid risk then investing in low-yield savings accounts makes sense, but other investments could be more profitable, yet carry more risks.

Is stock trading risky?

Risky — yes, but not as much as some people think. There are different types of risk involved in investing, and the bigger amount that you invest, then the bigger risks that you take. This means that for someone who invests his or her $100, the consequences of losing it all might be less serious in comparison to someone who invests much more. 

Can I start my own business with $100?

Yes, $100 can go a long way when starting your own business, especially if you know what you are doing. Some might even say that you can start for free and accumulate some experience first. This way you will avoid losing additional money that could have been avoided if you had just started small.

Achieving financial freedom with $100 might seem unlikely or simply impossible, but it’s not. When it comes to the best self-employed jobs, you just need to be willing to keep learning as you go along and always reinvest your earnings into better education for yourself.

How can I make money with $100?

Once you’ve decided to invest your $100, the next step is to find an investment that fits your needs and preferences.

The best way to do this is by doing some research on the web and learning more about: index funds, bonds, mutual funds, etc. After this process, you should be able to decide on how to invest 100 dollars and make money.

What is some other important advice about investing?

Investing takes time and effort, and it is always a good idea to look for assistance from someone who has been there before — meaning a financial advisor.

This way, you could protect yourself from making mistakes, which means that even if your first investments don’t turn out as profitable as expected, then you wouldn’t lose additional money. As long as the market doesn’t crash within a short period, then everything should be fine.

Lastly, remember that investing 100 dollars will only make sense if this amount represents the right portion of your investment portfolio. The more you invest, the bigger the risk and the higher the expected return.

Conclusion

To round up, those were some of the best ways for making money with $100 while minimizing the risks involved. 

Setting financial goals from the get-go is a crucial part of long-term investment when using any of the above methods for the betterment of your life. 

Of course, this list could go on forever but keep in mind that while these are great ways of making a return on your initial investment, there isn’t a surefire way of succeeding in investing your money — no matter how much you think you know.

Always be smart and do your research before committing to anything.

Finally, if you’re interested in learning more about this topic, check out this article on 5 steps to making 300 USD per day. It will give you further information and get you moving in the right direction.

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Mike Vestil

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About the Author

Mike Vestil is an author, investor, and speaker known for building a business from zero to $1.5 million in 12 months while traveling the world.

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