Starting off as an investor can certainly be a rather daunting prospect especially if you don’t know where to start. You may think that you need a vast amount of capital to start off but in actual fact this is typically not the case. There are a number of different investment vehicles that require a very small entry.
As a beginner investor it is a good idea to start off small anyway, so even if you only have $100 to your name you are still in a highly favourable position to trial some investments before you invest more.
In today’s article we are going to look at a handful of different ways that you can invest $100, so without further ado let’s get started!
Retirement Savings Account
By far the easiest way of investing your money is with a registered retirement savings account. While the terms and conditions of retirement accounts vary by country, they are generally one of the most effective investment vehicles available.
With a retirement savings account, you can have the money taken directly out of your pay cheque each month and have it deposited directly into your fund.
What’s more, if you work for an employer who will match your contributions then your $100 investment just turned into $200!
If you are seriously considering a retirement savings plan then you should spend some time beforehand doing plenty of research so you know exactly what your money is going into.
Online Trading and Investing
The growth and widespread availability of online trading platforms means you have many ways to invest $100. Whether you’re looking to trade stocks, currencies, commodities or index funds, online financial brokers provide quick and seamless access to the global financial markets. Even if you only have $100, there’s nothing stopping you from investing towards your financial goals from the comfort of your own home or office.
In addition to enjoying unfettered access to the financial markets, online trading platforms also provide impressively low trading fees. By shopping around for the right broker, you can also avoid being charged inactivity fees or any monthly or annual membership fees either.
Pay Your Debts
While you might not think of paying towards your debts as an investment, the debt itself is like a bad investment that is creating a loss for every additional moment that you hold it.
Look at your debts, figure out which one you are paying the highest interest rate on, and you may consider throwing all of your $100 at it.
This is about as close as you’re going to get to a guaranteed return on investment!
High-Yielding Savings Account
If you are looking for a slightly more simplistic form of investment then you might want to consider a high-yield savings account. Although savings accounts only offer a tiny fraction of what is possible with other forms of investment, you will at least enjoy the peace of mind that you aren’t likely to lose any of your initial investment.
A high-yield savings account like this might be a great way to get started if you only have a small amount of capital with nothing in the way of backup funds.
Warren Buffet himself had this to say about index funds: “My advice to the trustee could not be more simple: Put 10% of the cash in short-term government bonds and 90% in a very low-cost S&P 500 index fund (I suggest Vanguard’s). I believe the trust’s long-term results from this policy will be superior to those attained by most investors – whether pension funds, institutions or individuals – who employ high-fee managers.”
We certainly won’t argue with this; well put!
Invest in Yourself
Something that you might not have thought about is investing in upgrading your own skills and knowledge.
Alan Steinborn, founder of a financial education platform called Real Money, says that he would “[…]take $10 and buy the book Your Money or Your Life. Then [he] would take $90 and invest in a fund like Betterment or Acorns.”
While we’re on the subject of education, there are tons of online courses you can take to improve your skills and increase your knowledge in any given field.
Services like Udemy offer highly affordable online educational materials that could propel you into a lucrative new career or business venture. This is surely a superior investment because it may yield true long-term returns.
David Wismer (March 2, 2014). “Warren Buffett: ‘Investing Advice For You—And My Wife’ (And Other Quotes Of The Week.” Forbes.
 Jeff Rose (June 8, 2015). “16 Ways to Invest $100.” Good Financial Cents.
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