How To Invest With $100: Different Ways For Beginners

Many people think, “I only have $100, can I really start investing?”
The answer is yes. You do not need to be rich to start. You just need the right information, a good plan, and a small first step.

In this blog, we will learn:

Why starting with $100 is powerful
Simple ways: How To Invest With $100
Easy examples and calculations in dollars
Different plans for safe, medium, and high-risk investors
Common mistakes to avoid

The language is very simple so that even a beginner can understand every point.

Why Starting With Just $100 Matters

Many people wait for the “perfect time” or “big amount” to start investing. But waiting for years is more harmful than starting with a small amount now.

The main power behind investing is compound growth.

What is compound growth?

Compound growth means:

Your money earns returns, and then your returns also start earning returns.

It is like a snowball that becomes bigger as it rolls down a hill.

Simple example of compound growth

Imagine you invest $100 and it grows at 10% per year.

After 1 year:
Money = $100 + 10% of $100 = $100 + $10 = $110
After 2 years:
Now 10% is earned on $110
10% of $110 = $11
New amount = $110 + $11 = $121
After 10 years (rough idea using calculator):
$100 × (1.10)¹⁰ ≈ $259

So your $100 can become around $259 in 10 years at 10% annual return, even if you don’t invest more.

Now imagine you keep adding more money later. The result becomes much bigger.
So the most important thing is: start early, even with only $100.

Steps To Start Investing With $100

Before we discuss where to invest, let’s look at the basic steps.

Step 1: Set a simple goal

Ask yourself:

Why am I investing this $100?
- For long-term wealth?
- For retirement?
- For a future purchase?
- To learn how investing works?

When you know your goal, it becomes easier to choose the right option.

Step 2: Choose a low-fee investing platform

Look for a platform that has:

No or low account minimum
No or low trading fees
Option to buy fractional shares (very helpful with small amounts)
Simple app or website

High fees can easily eat your small investment, so low fees are very important.

Step 3: Decide your risk level

Your $100 can be invested in:

Low risk (safer, lower growth)
Medium risk
High risk (can grow fast but also lose money)

Think about your comfort:

Are you okay with small ups and downs?
Or do you get very worried if value goes down?

Your answer will guide your choice.

Best Ways: How To Invest With $100 (Core Ideas)

Let’s see some popular and practical ways to invest $100.

Fractional Shares of Stocks

Usually, one share of a company can be very expensive (for example, $200 or $500 per share).
But with fractional shares, you can buy a small part of a share.

Think of a pizza:

One full pizza = 1 share
A slice of pizza = a fraction of a share

So if one share costs $500 and you invest $100, you can buy 0.2 share (100/500).

Why fractional shares are helpful

You can invest in big, popular companies with small money
Your $100 does not sit idle; you can fully use it
Good for beginners who want to test stock investing

Example with fractional shares

Suppose you decide to invest:

$100 in a company using fractional shares
The stock price grows by 8% in one year

New value after 1 year:
$100 + 8% of $100 = $100 + $8 = $108

If you keep it for 5 years and it grows around 8% every year, your $100 can become roughly:

$100 × (1.08)⁵ ≈ $146.93 (about $147)

This is just an example; real returns can be higher or lower.

Exchange-Traded Funds (ETFs)

An ETF is a basket of many stocks or bonds. When you buy 1 unit of an ETF, you are indirectly buying a small piece of many companies.

Benefits of ETFs:

Diversification – your $100 is spread over many companies
Less risky than putting all money in one stock
Many ETFs follow broad market indexes
Low fees in many cases

Example with ETF

You invest $100 in a broad market ETF that tracks a large index.

If the ETF gives an average return of 7% per year, then:

After 1 year: $100 × 1.07 ≈ $107
After 10 years: $100 × (1.07)¹⁰ ≈ $196.72 (about $197)

Again, this is a simple example. The main idea: ETFs are good for long-term, diversified investing.

Retirement Accounts (If Available in Your Country)

In some countries, there are special retirement accounts that give tax benefits. With $100, you may be able to:

Add to your retirement account
Invest inside it in stocks, ETFs, or funds
Grow your money faster due to tax savings

If your employer gives any match (for example, they add extra money when you invest), then putting $100 there can be very powerful.

Example

If for every $100 you put, your employer adds $50:

Your $100 becomes $150 instantly
Even before any market gain, you already got a 50% bonus

Then if that $150 grows at, say, 7% per year for 10 years:

$150 × (1.07)¹⁰ ≈ $295.08 (about $295)

Money Market Funds or High-Yield Savings

If you are very afraid of losing money, or you may need the cash soon, you might prefer safer options like:

Money market funds
High-yield savings accounts

These usually give lower returns compared to stocks or ETFs, but the value is more stable.

Example

If a high-yield savings account pays 4% per year, and you keep $100 for 3 years:

Year 1: $100 × 1.04 = $104
Year 2: $104 × 1.04 ≈ $108.16
Year 3: $108.16 × 1.04 ≈ $112.49

So your $100 becomes about $112.49 in 3 years with low risk.

Creative Ways To Invest $100

Apart from the basic methods, there are some creative ways to use your $100.

Real Estate Crowdfunding (Small Amounts in Property)

In some places, there are platforms where many small investors pool money together to invest in real estate projects.

With around $100–$500, you may be able to:

Invest in a part of a rental property or development project
Earn rent or interest or part of profit (depending on the platform and project)

Risk note:
Real estate projects can fail or give lower returns than expected. Think of this as a medium to higher risk option and put only a small part of your money if you are a beginner.

Invest $100 in Yourself (Skills and Learning)

One of the best investments is in education and skills. With $100, you can:

Buy an online course (for example, on coding, design, marketing, writing)
Buy books that teach useful skills
Attend a local workshop

If a $100 course helps you earn even $50 extra per month later, that is $600 per year, which is a very high return on your investment.

Example

You spend $100 on a course
After learning the skill, you start a side gig and earn $25 extra per week

$25 per week × 52 weeks = $1,300 per year

Here, $100 gave you skill to earn much more later.

Start a Micro Side Hustle

You can also use $100 to start a small side hustle, like:

Buying materials to make handmade products and sell online
Buying simple tools or software needed for freelancing
Starting a small online store with low-cost items

Example

You use $100 to buy material to make handmade bracelets.

Cost per bracelet (material only) = $2
You sell each bracelet for $5

Your $100 lets you make 50 bracelets (100 / 2 = 50).

If you sell all 50:

Revenue = 50 × $5 = $250
Profit before other costs = $250 – $100 = $150

You turned $100 into $250 revenue and $150 profit (this is just a simple example; real life depends on demand, marketing, etc.).

Small Speculative Investments (Crypto, P2P, etc.)

Some people like to put a small part of their money into high-risk assets like:

Cryptocurrencies
Peer-to-peer lending
Very small or new companies

These can sometimes give very high returns, but they can also fall sharply or even go to zero.

For beginners, it is safer to keep this part very small, for example, $10 or $20 out of $100.

Sample $100 Investment Plans (With Calculations)

Let’s design a few example plans to show how you might use your $100.

Very Safe Plan

Goal: Protect money + small growth + sleep peacefully

You can do:

$60 in a high-yield savings account / money market fund
$40 in a broad market ETF

Possible outcome (example)

Assume:

Savings gives 4% per year
ETF gives 7% per year (average long-term, not guaranteed)

After 1 year:

Savings part: $60 × 1.04 = $62.40
ETF part: $40 × 1.07 = $42.80

Total after 1 year ≈ $62.40 + $42.80 = $105.20

You earned around $5.20 on your $100 in one year with low to medium risk.

Balanced Plan

Goal: Good growth with moderate risk

You can do:

$20 in high-yield savings
$60 in a broad market ETF
$20 in fractional shares of a strong company

Example assumption for 1 year:

Savings at 4%
ETF at 7%
Stock at 10%

Calculations:

Savings: $20 × 1.04 = $20.80
ETF: $60 × 1.07 = $64.20
Stock: $20 × 1.10 = $22.00

Total after 1 year ≈ $20.80 + $64.20 + $22.00 = $107

You earn about $7 on $100 in this example. Of course, stock and ETF values can go up or down, so this is only an illustration.

Aggressive Plan

Goal: High growth, okay with big ups and downs

You can do:

$70 in fractional shares / growth stocks / ETFs
$20 in speculative assets (for example, crypto or high-risk startup)
$10 in high-yield savings (very small safe part)

Example assumptions for 1 year:

Growth stocks/ETFs at 10%
Speculative part doubles (100% gain) – this is optimistic, just for example
Savings at 4%

Calculations:

Growth part: $70 × 1.10 = $77
Speculative part: $20 × 2.00 = $40
Savings: $10 × 1.04 = $10.40

Total after 1 year = $77 + $40 + $10.40 = $127.40

So you make $27.40 profit in this example.
But remember: speculative investment can also lose most or all of its value, so this plan is only for people who fully understand and accept the risk.

Important Tips When Investing $100

Avoid High Fees

Do not choose platforms that charge high commissions on every trade.
Do not choose funds with very high yearly charges.

When your amount is small, even a few dollars of fees are a big percentage.

Do Not Chase Hot Tips and Memes

Never invest just because:

A friend said “this will explode”
You saw a random post online
A coin or stock is trending for a few days

Always ask:

Do I understand this investment?
What is the risk?
Does it fit my goal?

Stay Patient

$100 will not make you a millionaire overnight. But:

It helps you learn how investing works
It builds a habit of investing
You can add more money later and grow faster

Think in years, not days or weeks.

What To Do After Your First $100

Your first $100 is only the beginning. After you start:

Review after a few months
- Are you comfortable with your choices?
- Do you want more safe or more growth investments?
Add small amounts regularly
- Even $20–$30 per month can make a big difference over time
- Set up automatic transfers to your investment account
Keep learning
- Read about investing basics
- Learn more about risk, diversification, and long-term planning
Adjust your plan slowly
- Do not buy and sell too often
- Rebalance once or twice a year if needed