How to invest with $100 only? It may not sound a lot but if you put the $100 into good use, it may turn up to be a good investment in years to come.
Don’t let the “don’t have enough” mentality way you down. It does not matter how much you have. Starting an investment plan may not be easy, but once you dip your foot going forward, investing is quite easy.
We will be showing you the best ways you can invest your $100 bill.
10 Best Ways to Invest $100
Investing is not a question of how much you have, but how much you are willing to invest. However, investing $100 may not be as easy as you may think. For instance, some accounts have minimums: consider hoping to invest, then the minimum annual fee is set at about $50; this is half of what you had in mind as your capital. Worry not, for there are other various ways to invest.
1. Savings Account
If you are not a risk-taker, this is the best plan for you. Savings account are deemed to be the safest investment option. However, don’t just invest your money and leave it there. If you plan to leave it there, then it bests that you change it to smaller bills and keep it in your wallet. Once you get a savings account, the idea is that you build up ten times to a level where you get a higher-yielding investment.
Having a savings account will enable you to create an emergency fund that every investor needs.
The setback you are likely to face with such an investment option is the inability to pull out. Investing in a savings account is by far the best as it enables you to get a higher amount that may help you invest in other riskier options while providing a myriad of options.
2. Robo Advisors
You only have $100 to invest and the last thing you want is huge fees going towards financial advisors or brokers before settling on a perfect investment option plan. Robo advisor is an automated online platform that helps you in discovering the ideal investment plan depending on your level of tolerance when it comes to risk. Once you feed in this information, the computer does the rest for you.
3. Starting your Own Business
Did you know you can invest in building your own business from scratch? It may seem scary, but nothing comes easy. Staring your own business may be the best thing you ever set out to do. The entrepreneurial brains flourish when it comes to starting up, but this does not mean you cannot give it a try. The great stories of Microsoft and Apple Inc. began from a garage after various trials and errors but are now multibillion-dollar companies; it is all about hard work, commitment, and discipline, not to mention the spirit of not giving up.
4. Index Investing
Ranking as the most popular way to invest, index funds provide you with the best and easiest way to invest in the stock market, baby! When you chose to go the index investment way, you secure yourself a bundle of stocks without having to pick and purchase one. You don’t have to worry about the purchase procedure, its easy-peasy lemon squeezy.
All you have to do is choose where you would like to buy from like the mutual fund company; this is done by searching through various broker’s funds’ selection, some of which are commission-free, which as the best since you only have $100.
Pick the desired index, while doing this, you have to consider factors such as the company size, business, and asset type. Bear in mind the amount you are willing to invest since most indices will highlight the minimum investment cost as well as other accruing costs which include, investment minimum, account minimum, expense and tax ratio, besides, who would want to register where there are zero returns? Nobody!
5. Dividend Stocks
If you are thinking of investing in a company, dividends stock is the best way to go. Dividends are the surplus from shares that are shared amongst the various classes of investors of the company.
If you choose to invest in dividends its best, you pick companies that have proven to be stable and perform well regularly.
Once you get the returns, you could either use it or choose to re-invest by purchasing more stocks. You will realize that through this, you expand your portfolio while not having to use your cash by digging into your account.
6. Buying Individual Stocks
Stocks are investments forming a representation of part ownership in a corporation. When you buy the different types of stocks, you get to partake in the proceeds of the company, depending on the class of stocks.
Let’s face it, that crisp $100 bill may not buy you many stocks. The question here should not be about the number of stock but investing in the right stock that will give you good returns.
Please don’t go into it alone; consult trusted discount brokers; they will help you will low trading fees by researching the available right stocks before investing.
7. Buying and Selling
This is close to you starting your own business. However, this type of investment involves buying items at a low cost and selling them at a practical value. Buying and selling offer the perfect way to raise money if you want instant cashback. But, you have to keep in mind various factors such as market demands.
Do not buy items that you cannot find a market for. Such investments are not demanding so you can juggle between this and other activities; that is, it can be part-time, yet you are still making as much as your full-time income.
If you are worried about how your retirement will go, why not invest in it? Take your $100 and invest it towards the 410(k) scheme.
You are probably wondering how this plan works. The 401(k) is a retirement scheme that helps you invest any amount at a rate of 7% per annum. Let us do the math, the retirement age is 60 years, and you are a budding 25 years old you invest your $100 into 401(k) at the rate of 7% per annum by the time you graduate you shall have a total of $345, now imagine having a higher principal amount. You will be better placed on retirement.
9. Lending Services
You are probably wondering what we mean here. Lending services are not about taking your $100 and giving it to your cousin for his use so he could give you back the $100 when he gets it, No. This is about “peer-to-peer” lending schemes.
Some companies offer lending services you can give your $100, and it shall be provided at rates to borrowers through companies such as prosper. It is better to lend it out in quarters. This lowers risk chances from defaulters since it’s not one defaulter while it ensures higher returns due to the cumulative interest rates.
10. Investing in Yourself
No amount of growth outweigh personal growth. You may invest in a business and get super-rich, but if you are not developed as a person that there is not so much to be happy about. Take classes and learn new skills through online courses or by attending classes. 0nce you have accomplished such, update your resume, this improves your employability. Find a mentor who will guide you to reach your greatest potential.
Buy, good books and read, information is the greatest tool humanity has. Books such as ‘Think and Grow Rich’ ‘Rich Dad Poor Dad’ are good reads that help you grow and gives you an insight into the business world. Get a pair of training shoes and tracksuits, do exercises, and live a healthy life. Nothing beats that.
It is everyone’s dream to invest, get returns, re-invest, and live in the best comfortable life that the world can give. However, when you choose to invest, it is essential to have your desires and goals marked. Do not rush to invest, do research, and consult. They’re good and bad investments.
Avoids certain types of investments such as penny stocks; they are low budget but, hey! They are unsafe since the companies may not be transparent. At all costs, you must avoid pyramid schemes, and some point you will be cut off as the pyramid grows. These are but a few investment don’ts that you should avoid at all costs.
Bottom, do not despair that you have so little to invest; there is a plan for everyone who finds the right investment. however, do not be in a rush to invest as you may end up losing your money. do extensive research and ask around for guidance especially among those who have prior experience before you invest your $100. Like they say, “Money is always eager and ready to work for anyone who is ready to employ it.”