How I doubled my money by investing just $100
I used to think investing was only for people who already had a good amount of money. I didn’t know anything about investment. I was just curious to know how it works and how a person multiples the current amount of money. But one day, I really decided that I should start investing, and I did some research. As usual, I sat on my laptop and started researching, and after spending 5 hours, I figured out many ways. So, I just had $100 saved up, so I thought I would give it a go. I was scared. I did not want to lose my cash. But I also did not want it to just sit in my account. That little thing impacted how I think about money.
If you are just starting off and only have $100, I want to tell you something simple: that is all you need. You can start with a little. You can learn as you go along. You do not have to be an expert. I’m showing you some easy techniques I learned to invest with only $100 and gain confidence later.
I invested my $100, and this is how I did it
A lot of folks delay because they think $100 is not enough. I used to think that too. But how much you start with does not matter when you invest. It is all about getting started. Little bits can grow. You can get rich by doing small things. The important thing is to make easy and wise choices that work for beginners.
1. Start With Fractional Shares
I felt like a door opened for me when I first learnt about fractional shares. I used to think I had to buy a whole share of a corporation. Some stocks cost $500, $300, or even more. I could not do that. But fractional shares let you own a small part of a corporation.
If a share costs $500, I can buy one-fifth of it with my $100. My money grows when the price goes up. My $100 turns into $200 if it doubles. This let me put money into solid, well-known companies right away instead of waiting years to save more. It made it seem like anyone could invest, even people like me who were new to it.
2. Invest in ETFs for Easy Diversification
Putting money into ETFs also made me feel protected. When you buy an ETF, it is like buying a lot of stocks in one go. Instead of putting all of my $100 into one company, I put it into hundreds. This made my risk lower. If one company does poorly, other companies can make up for it. That made me feel better. Also, many ETFs have low fees, so I can keep more of my money invested.
I loved that ETFs work like regular equities. I could purchase and sell them when the market was open. I thought I had a small part of the market with just $100. It was easy to use, adaptable, and good for beginners.
3. Open an IRA for Long-Term Growth
I opened an IRA when I started to think about the future. At first, it seemed like retirement was a long way off. So, I learnt that time is strong. Compounding may make even $100 grow a lot over a long time. Some IRAs can help you save money on taxes. You may be able to get tax breaks right now with a Traditional IRA. Your money can grow in a Roth IRA, and you can take it out tax-free later. That made sense to me.
A lot of platforms let you start an IRA with no minimum amount. At first, my $100 did not seem like much, but it was the start of something big. I stopped focusing on making money quickly and started thinking about safety in the long run.
4. Try Money Market Funds for Stability
At first, I was afraid of losing money. That was when I started to look at money market funds. These funds have less risk than equities. They put their money into short-term, high-quality debt, such as government bonds.
The returns are not very great, but they are usually better than just keeping the money in a regular account. It seemed like a secure place to start for me. While I learned more about investing, my $100 was making money. It was like a warm-up. I was at peace. This can be a simple and steady initial step if you are feeling anxious.
5. Build a Strong Base With Index Funds
I really liked index funds. They put your money in a lot of different companies. Some index funds, for instance, follow the whole market or just the biggest corporations in the economy. This lowers the chance of choosing a terrible stock. If one business goes down, the others are still there. That balance made it easier for me to sleep at night.
A lot of platforms have index funds that have minimal costs and low minimum investments. I could put $100 into a lot of different parts of the market. It felt strong. I did not try to forecast who would win; I just tracked the overall expansion of the market. This gives newbies a strong and reliable base to build on.
6. Keep It Simple With Target Date Funds
Target date funds helped me when I was having trouble picking investments. The year you plan to retire is what these funds are predicated on. All you have to do is choose the fund that fits your retirement objective. The management of the fund takes care of everything. They spread your money out over stocks and bonds.
The portfolio automatically lowers risk as you move closer to retirement. I enjoyed how hands-off this was. I did not have to keep an eye on the market all the time. I put my $100 into something with a clear long-term plan. This choice takes away worry for newcomers who are apprehensive. It is easy to use, works on its own, and is made to grow with you.
To Sum Up
Starting with your $100 might not sound too impressive, but this is only how you should start. I used to be ashamed to put in so little money. That first $100 taught me how to be responsible. It taught me how to wait. It showed me that luck does not play a role in investing. It is all about being consistent.
You do not have to wait till you are ready. You get ready by starting. Pick one easy choice and take your time learning. Put in additional money when you can. Every little bit counts. You can do it too if you start with just $100 and acquire confidence over time. Begin small. Keep it up. Let your money grow with you.
