If I only had $100 to invest, where would I start? This is one of my favorite questions because it’s so real and relatable. You don’t need thousands of dollars to begin investing. You just need to start where you are, with what you have.
So today I’m walking you through exactly what I would do with my first $100 to invest, especially if I were starting from scratch. I’m keeping this beginner-friendly, low-pressure, and high-impact, because your first $100 can absolutely set the tone for your entire wealth-building journey.
Let’s get into it!
Step 1: Choose the right brokerage account
Before you invest, you need a home for your money. That means opening a brokerage account. If your goals are long-term (like retirement), I’d suggest opening:
These accounts offer tax advantages that help your money grow faster over time.
If you’re investing for flexible goals, like buying a home, growing your money for future freedom, or investing outside of your retirement account, you can open a taxable brokerage account. It’s still a powerful wealth-building tool.
Personally, I use Fidelity, but there are other great options like Vanguard, Charles Schwab, and beginner-friendly apps like Acorns. Just make sure the platform you choose:
- Has low fees (ideally no commission)
- Offers fractional shares (so your $100 can be fully invested)
- Has a user-friendly interface
- Is reputable and trusted
The account you choose is your launchpad. Keep it simple, but choose wisely.
Step 2: Pick a diversified investment
Now that your account is open, it’s time to put that $100 to work. Here’s what I wouldn’t do: buy individual stocks right away. It’s tempting, but when you’re starting with a small amount, diversification is key to reducing risk.
Instead, I’d invest in:
These funds allow you to invest in hundreds, even thousands, of companies at once. So even with just $100, you get exposure to a wide slice of the market.
This is how I started my own investing journey: simple, low-cost index funds that I could build on. And if I were starting over today, I’d do the exact same thing.
Step 3: Set up recurring investments (even small ones)
Once your first $100 is invested, the next step is the most important: keep going.
I always say wealth isn’t built from one-time actions, it’s built from consistent habits. That’s why I’d immediately set up a recurring transfer into my brokerage account. Even if it’s just $10 or $25 per month. It matters.
Here’s how to keep that momentum going:
- Automate your deposits so you don’t have to think about them
- Set your account to automatically reinvest dividends
- Increase your contribution over time as your income grows
Investing $100 is a great start. But investing consistently is what builds long-term wealth.
Step 4: Keep learning as your money grows
This part is often overlooked, but it’s essential. That first $100 is not just a financial milestone, it’s a mindset shift. You’re officially an investor now. So let your curiosity lead you.
Here’s what I’d do:
Investing doesn’t have to be complicated, but understanding the basics will give you the confidence to stick with it, especially when the market feels shaky.
Step 5: Block out the noise and focus on your goals
Let’s be real—once you start investing, you’ll see and hear a lot of advice. Some of it is helpful. A lot of it… isn’t. You don’t need to predict the market or jump on hot trends.
Your job? Stay consistent. Stick to your plan. Review your goals every few months. And give your investments time to grow.
Wealth is built with patience, not pressure.
Expert tip: Start where you are
Don’t wait until you feel 100% ready or have thousands of dollars saved up to start investing. I started with small amounts and let consistency do the heavy lifting. That first $100 is more than enough to start building the habit, the confidence, and the results.
Frequently asked questions about how to invest with $100
Can you actually grow wealth starting with $100?
Yes, absolutely. While $100 won’t turn into millions overnight, it’s the habit of investing that leads to wealth. When you start early and keep going consistently, compound growth begins to work in your favor. Many successful investors didn’t start with a lot of money, they just started.
What if I invest $100 and the market drops?
Market drops are normal, and they happen to everyone. If your investment value dips after you invest, don’t panic. You haven’t lost money unless you sell. Think of your investment as a long-term commitment. Over time, the market has historically gone up despite short-term drops.
Should I wait until I have more money to start investing?
Waiting for “more money” often leads to waiting forever. The best time to start investing was yesterday, the second best time is today (A famous Warren Buffet quote). Starting with $100 gets you in the game, and you can build from there. Remember: it’s not about the amount. It’s about the momentum.
How do I know which platform is best to invest with?
Look for platforms that offer low fees, fractional shares, and user-friendly interfaces. Some of the most trusted are Fidelity, Vanguard, and Charles Schwab. If you prefer an app experience, you can also explore beginner-focused platforms like Acorns. Be sure to read reviews, compare features, and ensure the platform is SIPC-insured.
Don’t underestimate the power of $100
Your first $100 can feel small, but don’t underestimate its power. It’s the spark that ignites a much bigger fire, your journey to financial freedom.
When I started investing, I didn’t know everything. I just knew I didn’t want to keep waiting. So I took a small step. And then another. And that’s exactly what I hope this article inspires you to do.
So if you have $100 and you’re wondering what to do with it, invest it! Learn as you go. Stay consistent. And remember: you’re not just growing money, you’re building your future.
