Starting from scratch when investing can be tough, but it doesn’t have to be that way. When beginning to invest, it’s best to start small so that you cannot be set back too much if you lose your investment.
Starting with a first investment at the lower end of the industry’s minimums will help you develop good investing habits without destroying your wallet. You should always think of investing as a long-term try.
So while a temporary loss shouldn’t deter you, you must have the patience and wisdom to regain and grow your eventual profit. To give you an idea, below is a guide on how to invest 100 dollars.
Follow these steps and you’ll be on your way to wealth in no time.
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Invest in a Robo-advisor
Investing 100 dollars in a Robo-advisor is a relatively simple process with great potential rewards. Firstly, select one of the many robo-advisor services available. Carefully read their Terms and Conditions and check what fees they charge.
Once you have settled on one, you will need to provide personal details such as name, address, date of birth, and bank details to open an account. Money can then be deposited and you can decide how you would like to invest your money. This can be tailored to suit your goals and preferences, from low-risk conservative investments to more adventurous ones.
The robo-advisor will then invest your money in line with your instructions and provide you with updates on your portfolio. With robo-advisors now offering an affordable way to invest without the large fees associated with traditional advisors, investing 100 dollars could be the start of an amazing journey with potentially great returns.
Buy Stock in a Blue-chip Company
Investing in a blue-chip company is a great way to get healthy returns on your investment. The way to invest $100 into a blue chip company is to know what blue chip companies exist and research the track record of each potential stock. A great tool to use for researching is Morningstar since it provides detailed analysis and financial data.
Once you’ve identified a stock to invest in, the next step is to open up an account with a brokerage that offers access to the market. After setting up your account, you can transfer the funds to the account, pick the stock, and make the purchase. Many brokers offer promotions and bonus incentives.
So it’s worth doing some research before opening an account to take advantage of the greatest savings. Once the buy is complete, you can check the performance of your investment and change your strategy as needed.
Invest in a Mutual Fund
Investing in mutual funds is a great way to use your extra $100. All you need to do is find a mutual fund that fits your preferences, goals, and risk tolerance. Your first step should be to research available funds, compare fees and returns, and compare the performance of the fund over many years.
Once you have chosen a fund, contact the fund provider to open an account. You will need to fill out an application, give identification, and make a first deposit to open your account. Once your account is open, you can begin investing your $100.
Generally, you can set up your account to automatically buy shares each month, making it an easy way to invest long-term. Lastly, keep an eye on the performance of your fund each month and make adjustments to your portfolio as needed.
Start a High-yield Savings Account
If you have $100 and want to invest, opening a high-yield savings account is a great way to start. First, use an online search engine to compare the interest rates of different banks, looking for the best rate for your money. Once you’ve found the one you want to go with, create an online profile, complete the application, and make a first deposit.
Make sure to sign up for direct deposit if possible. This allows you to have a set amount of money moved automatically into your savings account each week, month, or paycheck.
Set up an automatic transfer from your regular bank account to the savings account for more money to be added consistently. Be sure to check the interest rate to make sure you are getting the most out of your money. Lastly, enjoy the added security of knowing your money is growing over time in a high-yield account.
Invest in Exchange-traded Funds
Exchange traded funds (ETFs) are a great way to invest $100. ETFs, give investors access to a variety of Investments for a fraction of the cost of buying separate securities. Online trading platforms typically allow investors to buy ETFs for $100 or less.
ETFs can be used to gain exposure to a broad range of asset classes, such as buying shares, bonds, commodities, and more. To begin investing in ETFs with $100, an investor can browse popular ETFs offered on their online broker’s platform. An investor should select an ETF based on their goals and desired exposure.
After selecting an ETF, the investor can buy a set amount of shares for $100. ETFs also allow investors to add more money to their accounts over time, fueling better diversification and increasing the chances of successful long-term investing.
Start a Micro-investing Account
If you’re new to investing, micro-investing is an excellent way to start small and grow your investment portfolio with minimal risk. Once you’ve opened a micro-investing account, you’ll need to decide which type of investments are best for you.
Before investing, you should consider taking some trading options courses to learn all the details and different strategies, market trends, and risk management tools that will help you develop the skills you need to become a successful investor.
These courses will give you the knowledge needed to invest in different types of stocks, bonds, mutual funds, and other securities. After completing the courses, you’ll be equipped with the know-how to make informed investment decisions and increase your returns.
Explore Strategies and Learn How to Invest 100 Dollars
After exploring available investment strategies, it’s important to do some research and check each one carefully to find your best choice. By knowing where and how to invest 100 dollars wisely you may be able to increase your wealth over time. If you’re ready to give investing a try, contact a financial advisor to get the ball rolling.
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