You have a $100 bill but don’t know exactly where to invest it and grow your money?
The solution is simple: put your money to work.
Why Start with Just $100?
$100 is a good starting point if you're new to investing but don't want to take a lot of risk.
Well, you need to put your money in an investment vehicle so it attracts more dollars like it. Rinse and repeat until you’ve grown your money a lot further than the original $100.
Now, I must mention there is risk in these investments so don’t expect to grow your money without experiencing some road bumps and growing pains. There is a learning curve to everything in life.
1. Ally High Yield Savings Account
Do you have an emergency fund setup in case s*it happens? Well, one of the smartest things you can do is put your $100 in a high yield savings fund and aim to hit $1,000 for starters.
A high yield savings accounts earn a higher APY than traditional banks which are currently paying 0% interest rates.
AllyInvest pays 1.60% APY annually and is one of the safest FDIC insured online savings accounts with no minimums or fees.
Bitcoin is the hottest cryptocurrency on the planet right now and many bitcoin bulls think it will become the default currency of the future.
There are only 21 million bitcoins ever created and that's why corporations, celebrities, and institutional investors have driven the price of bitcoin to over $30,000.
You need a trusted cryptocurrency wallet or exchange to buy bitcoin and stoire it safely.
I recommended Coinbase to buy your first $100 worth of bitcoin. It's the largest cryptocurrency exchange in the United States with over 35 million accounts and counting.
If you want to invest in the stock market but don’t want to pick individual stocks, then try investing in ETFs via a roboadvisor like Acorns. Acorns automatically invests your money in balanced ETF mix according to your risk tolerance. The platform is backed by high profile celebrities like Ashton Kutcher and NBA superstar Kevin Durant.
I persnally have just under $200 invested in Acorns so check out my full Acorns review for more in-depth in
Assuming a 8% to 12% annual stock market return, you can grow your $100 over time as the stock market continues to rise. While we cannot predict the short term stock market outlook, the stock market is the best way to grow your money over the long term.
If you want to buy individual stocks, then try a commission free stock trading app like Robinhood. You can buy/sell stocks, ETFs and cryptocurrencies for free by signing up today.
Robinhood does support fractional shares and you can build a small yet simple portfolio with your $100. If you need a sample portfolio, here’s an example of what you could build on Robinhood:
|Company (Ticker Symbol)||Shares||Total Cost|
|Aurora Cannabis (ACB)||10||$21.3|
|Nio Inc (NIO)||5||$23.35|
|Snap Inc (SNAP)||1||$19.11|
|Kraft Foods Inc (KHC)||1||$31.08|
The total cost of the above portfolio is $94.84.
You still have around $5 in cash. It's a good idea to leave some money in cash to reduce portfolio volatility, and have some money left over to buy stocks on the cheap.
This is an example of small portfolio that you can add to and grow within time. Robinhood offers automatic deposits so consider adding money weekly/monthly to grow your portfolio over time.
Webull is another alternative stock trading app to Robinhood for more active traders and investors. You can use the same basic $100 portfolio I listed above but Webull also gives you 2 free stocks for signing up right now using this referral link.
Stash is the perfect solution for first time investors who want to build up an emergency savings while investing in fractional shares of their favorite companies.
You can build a balanced portfolio of 5 to 10 holdings by investing around $10 to $20 in each position. Here’s a sample portfolio for someone starting with $100.
- $20 invested in Amazon Stock (AMZN)
- $20 invested in Apple Stock (AAPL)
- $20 invested in Microsoft Stock (MSFT)
- $20 invested in Visa stock (VISA)
- $20 invested in Walmart stock (WMT)
My Stash portfolio is just under $900 so check out my complete Stash Invest review for more details.
Stash will let you keep your portfolio balanced while only charging you $1 per month in fees. You can also experiment with other bond or stock ETFs but I prefer holding stocks to maximize my gains.
5. Roth IRA
Opening a Roth IRA account is a great way to prepare for your retirement because your contributions grow tax-free and you can withdraw them without penalities after age 59 ½.
I suggest stocks to maximize your returns over the long run but you can try low cost index funds if you don’t like investing in individual stocks. I recommend Fidelity for opening your Roth IRA because not only do they offer commission-free trades, but you can invest in low cost Fidelity index funds. They are the cheapest index retirement funds available online.
6. Start a Blog
I started this blog back in 2006 and it was one of the best financial decisions I ever made. Making money online allows me to work from anywhere in the world and earn side income if I ever pursue a job in the future.
It doesn’t cost a lot of money to start a blog. In fact, you can get started for just $100 by signing up for a 3 year Bluehost shared hosting package. This includes 36 months of hosting plus your domain name.
Starting a blog lets you earn extra income by selling your own products/services as well as placing advertisements, affiliate links, sponsored posts, and business partnerships on your site.
It’s one of the best investments you can make if you put in the time, add value to your reader’s life, and stay consistent over the long run.
7. Gold & Silver
Precious metals is a good hedge against runaway inflation & stocks trading at all-time highs. If the stock market crashes, then lots of investors will put their money in precious metals like Gold & silver because they are known as safe haven during tough economic times.
Owning gold and silver is a sound strategy for any investment portfolio and I recommend investing at least 10% of your wealth in gold and/or silver.
For just $100, you could buy around 5 1 oz silver coins or just under 2 oz of gold. Be sure to hold on to your precious metals and buy more whenever you get some spare cash.
8. Low Cost Index Funds
Not a fan of buying stocks? Many investors avoid the stock market because it can lead to massive losses. A more conservative approach is to “buy the entire stock market” by holding index funds.
Index funds are large funds that invest in the entire stock market index but charge a very low fee to investors.
If you have a Fidelity account, you can invest in both the Fidelity Zero Total Stock Market (FZROX) & Fidelity Zero International Stock Market Index for free.
Learn more about the best Fidelity index funds to buy for your individual or retirement account.
9. Domain Investing
Domaining is the business of buying domains and reselling them for much higher prices. I’ve personally bought domains for around $150 then flipped them for $6,000+ profits. You can also hand register domains at a low cost domain broker like Namesilo for $7 then resell them to end users with a simple domain inquiry form or using a 3rd party broker like DAN.com or Godaddy Aftermarket.
With $100, you could hand registered 14 domains then try to resell them for profit.