You don’t need a fortune to get started in the world of investing. In fact, all you really need is a small amount of money, a clear goal, and a little bit of patience. Starting small is not only okay—it’s smart.
With just $100, you can take your first step toward building long-term wealth. The key is to start where you are, learn as you go, and stay consistent. Here’s how to begin, even on a tight budget.
Know What You’re Investing For
Set a Clear Goal
Before you invest a single dollar, know what you’re trying to achieve. Are you saving for retirement? Hoping to build wealth over time? Or just testing the waters to learn how investing works? Your goal will shape the choices you make.
If you’re in it for the long haul, you can afford to ride out the ups and downs of the market. If you need the money in a year or two, investing may not be the best move. Goals guide everything, so take a minute to define yours.
Think Long-Term
The best results in investing come over time. That means starting small is not a disadvantage. It’s a way to build momentum. Even $100 invested today can grow over the years if you stay consistent and reinvest your gains.
Don’t worry about becoming an expert right away. Focus on building habits and learning as you go. Investing is a journey, not a one-time decision.
Choose the Right Account
Open an Investment Account
To get started, you’ll need an account. For most beginners, a brokerage account is the best option. You can open one online in minutes with companies like Fidelity, Charles Schwab, or Vanguard.
If you’re saving for retirement, consider opening a Roth IRA. With a Roth IRA, your money grows tax-free, and you don’t pay taxes when you withdraw it in retirement. Many platforms allow you to start with no minimum balance.
Pick a Platform That Fits
Look for an investment app or website that’s easy to use and beginner-friendly. Some offer automatic investing, educational tools, and low-cost options for beginners. Many let you buy “fractional shares,” meaning you can invest in big-name stocks without needing hundreds of dollars.
Compare fees, features, and how comfortable you feel navigating the site. If it feels confusing, try another one. A simple setup makes it easier to stick with.
Choose What to Invest In
Start With Index Funds or ETFs
With just $100, your best bet is to keep it simple. Index funds and exchange-traded funds (ETFs) are great options. These funds spread your money across lots of companies, lowering your risk.
One popular choice is an S&P 500 index fund, which includes shares in 500 of the biggest U.S. companies. It’s like owning a tiny piece of the entire stock market. And it doesn’t take a lot of money to get started.
Avoid High-Risk Picks
It might be tempting to throw your $100 at a flashy stock or a trendy cryptocurrency. But that’s more like gambling than investing. If you’re just starting out, keep things boring. Slow and steady wins the race.
Focus on building a strong foundation first. You can explore more options later as your experience and confidence grow.
Keep Adding Over Time
Make It a Habit
That first $100 is just the beginning. Try to add to your investments each month, even if it’s only $10 or $20. Small, regular contributions can lead to big results over time.
Set up automatic transfers if you can. It removes the guesswork and helps you stay consistent without having to think about it every month.
Watch Your Money Grow
The fun part of investing is seeing your money grow over time. Some days the market will go up, and some days it’ll go down. That’s normal. Don’t panic, and don’t pull your money out too quickly.
Check in now and then, but try not to obsess. Investing works best when you leave your money alone and let it grow.
You don’t need to wait until you have thousands of dollars. You can start investing with just $100—and it’s one of the smartest moves you can make. Start small, stay steady, and let time do the heavy lifting. Your future self will thank you.
