How to Start Investing With Just $100
Think you need thousands to start investing? Think again. Learn how to begin building wealth with just $100 using beginner-friendly tools and strategies.
There’s a common myth that you need thousands of dollars to get started in the stock market. The truth? You can start investing with as little as $100 — and that small start could make a big difference over time.
This guide will show you how to put your first $100 to work, even if you’ve never invested before.
Why Start With $100?
You might think $100 isn’t enough to matter. But here’s why it’s a powerful place to begin:
- Build the habit: Starting small helps you create an investing routine.
- Time in the market matters more than timing the market.
- Learn by doing: You’ll understand more once your money is working for you.
- Compound growth: That $100 can turn into thousands over decades.
Even if you never invest another penny, starting now gets your money growing.
Step 1: Choose the Right Investment Platform
To invest your $100, you’ll need a brokerage account that allows for:
- No account minimums
- Fractional shares
- Low or no trading fees
Top beginner-friendly platforms:
- Fidelity
- Charles Schwab
- Robinhood
- Public
- SoFi
All of these support fractional investing — meaning you can buy a slice of stock or ETF, even if it costs more than $100 per share.
Step 2: Pick Your First Investment
With only $100, you want to keep things simple and diversified.
Best options for beginners:
- ETFs: Diversified, low-cost, easy to understand
- Index Funds: Track the market (if using a retirement account)
- Robo-advisors: Automated portfolios (e.g., SoFi, Betterment, Wealthfront)
Suggested starter ETFs:
- VTI (Total U.S. Market)
- VOO (S&P 500)
- VXUS (International)
- BND (Bonds)
You can buy a fractional share of any of these with your $100.
Step 3: Decide on Your Strategy
You don’t need to become a Wall Street expert. Choose one of these simple strategies:
Option 1: The One-ETF Approach
Invest your $100 in a diversified ETF like VTI and add more over time.
Option 2: 3-Fund Portfolio
Split your $100 into:
- 60% U.S. Stocks (VTI)
- 20% International (VXUS)
- 20% Bonds (BND)
Option 3: Use a Robo-Advisor
Let a service like Betterment or SoFi Invest build and manage a portfolio for you. They use your risk profile to automate everything.
Step 4: Automate and Add More
Once your $100 is invested, the best thing you can do is make it a habit:
- Automate contributions (even $25/month)
- Reinvest dividends
- Ignore short-term market noise
The more consistent you are, the more your money will grow.
What to Avoid When Starting Small
- Trying to trade stocks — too risky and costly with small balances
- Paying high fees — stick with low-fee ETFs or brokerages
- Getting discouraged — $100 is a powerful start, not the end
- Chasing hype — meme stocks and crypto fads aren’t great beginner options
Final Thoughts
Investing with just $100 isn’t just possible — it’s smart. It proves that you don’t need a big bank account to start building wealth.
Whether you choose ETFs, a robo-advisor, or a simple index fund, the most important step is to take action now.
Let that $100 be the first seed you plant on your path to financial independence.
Start small. Stay consistent. Grow big.
Next up: We’ll dive into the magic of compound interest and why it’s your best friend in investing.