Investing is often seen as something that requires large amounts of money to get started. However, that’s simply not the case. In fact, you can start investing with just $100. Whether you’re saving for retirement, building wealth, or just looking to grow your savings, investing small amounts early can make a big difference over time. With today’s investment platforms and tools, you don’t need a fortune to begin your journey.
In this comprehensive step-by-step guide, we’ll show you how to get started with investing with just $100 in 2025. You’ll learn how to make the most out of your limited capital, which investment options are best for beginners, and how to set yourself up for long-term financial growth.
Why You Should Start Investing with $100
Before diving into the steps, let’s explore why investing $100 is a great way to start.
- Compound Growth: Even small investments can grow significantly over time, thanks to the power of compound interest. The earlier you start, the more your money has time to grow.
- Diversification: You don’t need a huge portfolio to start diversifying. With $100, you can still invest in a variety of assets, reducing your risk.
- Access to Low-Cost Investment Platforms: Today, many platforms allow you to invest in fractional shares, meaning you can own a portion of expensive stocks with as little as $1.
Step 1: Set Clear Investment Goals
The first step to investing is understanding why you’re investing. Are you looking to build a long-term retirement fund, save for a specific goal (like buying a home), or just grow your money over time?
Your investment goals will influence the types of investments you make. For example, if you’re saving for retirement, you may want to focus on long-term, less volatile investments. If you’re aiming for short-term goals, you might prioritize safer investments with lower risk.
- Short-Term Goal: Low-risk, liquid assets like bonds or high-yield savings accounts.
- Long-Term Goal: Stocks, index funds, or ETFs that offer higher growth potential.
Step 2: Choose the Right Investment Platform
Today’s digital age offers a variety of online brokers and platforms that allow you to begin investing with just a small amount of capital. Many of these platforms have low or no fees and allow you to buy fractional shares, meaning you can start investing in expensive stocks like Tesla or Amazon with as little as $1.
Here are some of the best investment platforms for beginners:
1. Robinhood: Best for Commission-Free Trading
Robinhood is one of the most popular platforms for new investors. With no fees for stocks, ETFs, and options trading, you can keep more of your money invested and earn returns faster. Robinhood also offers fractional shares, so your $100 can be spread across a variety of high-growth companies.
2. M1 Finance: Best for Portfolio Automation
M1 Finance offers fractional shares and allows you to automate your portfolio. You can choose from pre-built portfolios based on your goals or create your own personalized portfolio by selecting individual stocks and ETFs.
3. Acorns: Best for Hands-Off Investors
Acorns is a great option if you’re looking for a hands-off approach to investing. It rounds up your everyday purchases to the nearest dollar and invests the spare change. While you can start with a small initial deposit, your $100 will grow gradually through regular contributions, including those from round-ups.
4. Fidelity or Charles Schwab: Best for Long-Term Investment Accounts
For those looking to open a retirement account (like an IRA) or invest in a diversified portfolio of stocks and bonds, both Fidelity and Charles Schwab offer low-cost options for beginner investors, including fractional shares and no-fee mutual funds.
Step 3: Choose Your Investments
Once you’ve set up an account, it’s time to choose where to put your $100. With limited capital, your best approach is to focus on investments that offer broad exposure and diversification. Here are some of the best options for beginner investors:
1. Index Funds & ETFs: Best for Diversification with Low Fees
Index funds and ETFs are investment funds that hold a basket of stocks, bonds, or other securities. They are perfect for beginners because they offer instant diversification. Instead of buying individual stocks, you’re buying a slice of a large collection of assets, spreading your risk.
- Vanguard Total Stock Market ETF (VTI): Offers exposure to the entire U.S. stock market.
- SPDR S&P 500 ETF (SPY): Gives you access to the top 500 U.S. companies.
- iShares MSCI Emerging Markets ETF (EEM): Provides international diversification, giving you exposure to emerging market economies.
2. Dividend-Paying Stocks: Best for Steady Income
Investing in dividend-paying stocks is a great way to get started with a small amount of money, while still benefiting from regular income payments. Reinvesting dividends can significantly increase your returns over time due to compound growth.
- Coca-Cola (KO): Known for paying reliable dividends.
- Johnson & Johnson (JNJ): A safe, dividend-paying stock with long-term growth potential.
- Procter & Gamble (PG): A dividend aristocrat with decades of consistent payouts.
3. Robo-Advisors: Best for Passive Investors
If you’re not sure where to begin or don’t want to spend time managing your portfolio, a robo-advisor is an excellent choice. These platforms automatically create and manage a diversified portfolio for you, typically using ETFs. Robo-advisors like Betterment and Wealthfront charge low fees and make investing accessible for beginners with smaller amounts of capital.
4. Cryptocurrency: Best for High-Risk, High-Reward Investments
If you’re willing to take on more risk, cryptocurrency might be worth exploring. While cryptocurrencies like Bitcoin, Ethereum, and newer tokens are volatile, they’ve provided significant returns for early investors. You can start investing in cryptocurrencies with as little as $1 on platforms like Coinbase or Gemini.
Step 4: Invest Consistently and Reinvest Your Earnings
One of the most powerful strategies in investing is to consistently add more money to your account over time. With only $100, it may seem like a small amount, but regular contributions can help grow your portfolio steadily. Many platforms, including Acorns and M1 Finance, allow for automated contributions, making it easier to invest without having to think about it.
Additionally, reinvest your earnings. Most brokers offer the option to automatically reinvest dividends, which means your dividends are used to buy more shares of the asset, fueling compound growth. Over time, this strategy can greatly increase the value of your portfolio.
Step 5: Monitor and Adjust Your Portfolio
While investing is a long-term game, it’s essential to monitor your portfolio periodically and make adjustments as needed. If one of your investments is underperforming, consider rebalancing your portfolio by selling it and reallocating the funds into more promising assets.
Also, be mindful of your risk tolerance. As your account grows, you may want to shift your investment strategy, becoming more diversified or moving toward safer, low-risk investments if your risk appetite decreases.
Conclusion: Starting with $100 Can Lead to Big Returns
Starting with just $100 may seem like a small step, but it’s the beginning of building wealth over time. Whether you choose ETFs, dividend stocks, robo-advisors, or cryptocurrency, the key is to start now and invest consistently. By taking advantage of low-cost platforms and fractional shares, you can begin your investing journey today and benefit from compound growth for years to come.
Remember, the earlier you start, the greater the potential for your money to grow. Don’t let a small budget hold you back—investing with $100 today could lead to big rewards in the future.