Too many people think that in order to invest, they need to have overflowing bank accounts. Wrong! Investing is not just for the rich.
Did you know that you can start investing with a tiny amount? Let's take $100 and talk about the different ways you can put this small amount of money to work for you.
Invest in the stock market
The stock market is the most traditional way of growing your money and what typically comes to mind when the word investing is mentioned. You can invest in a variety of ways: By buying individual stocks, bonds, mutual funds, index funds, ETFs and more.
Sharebuilder.com, Acorns.com, Betterment.com, WiseBayan.com are all services that provide either ROBO advising or DIY investment options and require a very minimal amount of money to get started. They will typically diversify your portfolio for you by helping you spread your investment across a variety of different investment vehicles. Even $100 can buy a few shares of company. And who knows? Maybe they'll explode onto the scene and you'll be a bazillionaire (unlikely). Maybe they'll just keep chugging along and you'll earn a steady 6-8% on your investment (very likely).
Invest in yourself - Take an online course
Is there a particular topic you want to learn about? Maybe a new language? Thanks to the internet, you don't have to be in a physical classroom in order to master a topic. Learning online is a lot more affordable than the traditional classroom path. Consider investing in a well-reviewed online course to help you learn a new skill or expand on what you already know. Not only will you be learning, but many online courses allow you to join a community of like-minded people with whom you can network.
Expand your library, increase your knowledge base
The one thing the most financially successful people in the world all have in common is that they read a lot of books. Books contain a wealth of information that can help you on your path to building wealth. Start by picking up a few books on personal finance and self development, then begin applying what you learn in your everyday life. Reading can not only expand your knowledge base, it can also reduce stress, expand your vocabulary, improve analytical thinking, improve your concentration and focus, and so much more.
Start a side hustle
Starting your own business is another great way to build wealth. While you might need a good chunk of change to grow your business, there are many businesses you can start with just $100 - especially service based business. All you need to do is purchase a domain name, set up a simple website or blog (which can be done for free or at a minimal monthly fee), list your services and start promoting it. Baking, tutoring, social media management, virtual assisting just to name a few, are all businesses that can bring in quick returns and that you can start up with $100 or less.
Contribute to your emergency fund
Ideally you should have 3 to 6 months of your basic living expenses tucked away to cover any expenses associated with an unplanned life circumstance. If you don't have an emergency fund in place yet then putting away $1,000 is a good start. Contributing $100 is already 10% of $1,000 and a great way to get a head start bulking up your emergency account. Already started saving for emergencies? Well, there's no harm in contributing an extra $100 to your fund!
Put it towards your debt
When it comes to paying off debt every single penny counts towards knocking down those balances. If you typically pay only the minimum payments towards your debt, consider adding on an additional $100 in your monthly payment to get that debt paid off faster.
Paying off a credit card that has a 20% interest rate gives you an immediate return on your money.
No matter how little it is that you have to get started, when it comes to investing the most important things are getting started, having a plan, and staying consistent.