Investing often feels like it’s meant for people with stacks of cash to spare. But spoiler alert: you don’t need millions, thousands, or even hundreds to get started. All you need is $100 and a willingness to take that first step.

If the idea of investing sounds intimidating, we’re here to shift your perspective.

Why Investing Small Amounts Makes a Big Difference

You might be wondering, “What can $100 really do?” The answer might surprise you. Thanks to the power of compound returns, even small amounts invested today can grow significantly over time. Compound returns simply mean that your money has the potential to grow on top of the growth it’s already earned.

If you invest $100 today and it earns an average return of 7% annually, that $100 can grow to over $380 in 20 years—even without adding anything more. Small amounts add up, especially when you’re consistent.

The key lesson here? It’s not about how much you start with; the act of starting sets everything in motion.

Setting Clear Goals Before You Begin

Before you jump into investing, it’s good to know why you’re doing it. Having a clear goal gives purpose to your efforts and keeps you committed.

Some questions to consider:

  • Are you saving for a long-term goal like retirement?
  • Do you want to grow your money for a medium-term goal like buying a home?
  • Are you simply building wealth over time without a specific deadline?

Your goals help define how you’ll invest and how aggressive (or conservative) your strategy should be. Investing for retirement in 30 years might involve higher-risk investments like stocks, while saving for a vacation in three years might prioritize lower-risk options.

The Basics of Starting Small

With just $100, you won’t be buying up multiple stocks of large companies or diversifying a huge portfolio overnight—but that’s okay! Today, there are more investment options than ever for beginners with limited funds. Here’s what you can do with your starting capital.

1. Use Fractional Shares

Gone are the days when you needed hundreds or thousands of dollars to buy shares of major companies. Many brokerages now offer fractional shares, which allow you to buy small pieces of a single share, rather than the whole thing.

Want to own a fraction of Amazon, Apple, or Tesla stock? Fractional shares make it possible. With just $100, you can invest in several companies you believe in, spreading your money and reducing risk.

Popular platforms like Robinhood, Fidelity, and Charles Schwab make fractional investing accessible and beginner-friendly.

2. Invest in ETFs

Exchange-Traded Funds, or ETFs, are a fantastic option for small investments. ETFs are collections of investments (like stocks or bonds) that allow you to own a diverse slice of the market. They’re like a bundle of goodies, spreading your money across multiple companies or industries in one go.

For example, an S&P 500 ETF invests in the 500 largest companies in the U.S., giving you exposure to a huge number of stocks with a single purchase. Many ETFs have low minimums, and you can buy partial shares of these funds with just $100.

3. Try an Index Fund

An index fund is another simple and affordable option. These funds track the performance of an entire market index, like the S&P 500 or the total stock market. They’re great for beginners because they require little maintenance and have low fees. Similar to ETFs, many index funds accommodate small investors through fractional shares or low starting requirements.

4. Use a Robo-Advisor

If you feel overwhelmed by the idea of picking investments, a robo-advisor is a great starting point. Robo-advisors are automated platforms that create, manage, and rebalance your investment portfolio for you, based on your goals and risk tolerance.

Popular robo-advisors like Betterment or Wealthfront allow you to begin investing with as little as $100. They do the heavy lifting while you focus on contributing regularly.

5. Explore Micro-Investing Apps

Micro-investing apps like Acorns and Stash are designed for small-scale investors. These apps allow you to invest tiny amounts, sometimes rounding up spare change and automatically depositing it into your portfolio.

If saving $100 feels like a stretch, apps like these can help you build up to that amount passively while investing in the background.

Practical Steps to Get Started

Here’s a simple roadmap to take your first $100 and start investing confidently:

Step 1: Choose a Platform

Decide which investment platform or app works best for you. Do you prefer a hands-off approach (try a robo-advisor)? Or do you want direct control (go for ETFs or index funds through brokers like Fidelity or Vanguard)? Take time to explore and pick one that matches your comfort level.

Step 2: Open an Account

Most investment accounts can be opened in minutes online. Choose between a taxable brokerage account or a tax-advantaged retirement account like a Roth IRA if saving for retirement is your primary goal.

Step 3: Start Automating Contributions

Once you've set up your account, automate your contributions whenever possible. It’s easier to grow your investments consistently when you don’t have to think about it every month. Many platforms allow you to set up recurring deposits straight from your bank account.

Step 4: Invest Your $100

Decide how to allocate your $100 based on your goals and risk tolerance. For instance:

  • Go for an S&P 500 ETF if you want broad market growth.
  • Pick a robo-advisor if you want a customized portfolio.
  • Buy fractional shares of stocks you’re excited about for a more hands-on approach.

Step 5: Monitor Progress and Stay Consistent

Check in on your portfolio at least annually to see how it’s performing. Rebalance if necessary, but avoid obsessing over daily ups and downs. Remember, investing is a long-term strategy.

Why Consistency Matters More Than Amounts

The beauty of investing lies in the habit, not the size of your contributions. While $100 may not seem like much, regularly repeating that habit can lead to remarkable results. By committing to ongoing contributions—even if it’s just another $100 each month or quarter—you’re paving the way for significant growth over time.

  • Investing $100 per month at a 7% average annual return could grow into nearly $120,000 after 30 years.
  • If you manage to increase that to $200 per month, you’re looking at over $240,000 in the same timeframe.
  • Consistency, paired with the power of compounding, has more impact than occasional big contributions.

Overcoming Common Concerns

Starting with $100 might trigger doubts, like whether it’s worth it or whether investing is too risky. Here’s how to tackle these concerns head-on.

  • Concern 1: $100 Isn’t Enough: It’s easy to think $100 is insignificant, but every investment has to start somewhere. Even tiny amounts build momentum. Once you start seeing your money grow, it’s easier to stay motivated and add more when you can.
  • Concern 2: Fear of Losing It All: Risk is a natural part of investing, but it’s manageable. Diversifying through ETFs or index funds greatly reduces the danger of losing your investment. Plus, starting small means you’re learning with limited exposure, which is a great way to build confidence.
  • Concern 3: I Don’t Know Enough: You don’t need a finance degree to invest. Start with simple, beginner-friendly tools like robo-advisors or index funds. Over time, you’ll gain knowledge and confidence to explore more advanced strategies, if you want.

You’re better off starting small now than waiting for the “perfect” time or larger sums. Every dollar you invest is a step closer to financial freedom and stability.